Page 8 - NBIZ February 2021

The Second

PPP Loan

and What to Expect

By Angeline Vachris Kell

n January 6, 2021, amid the chaos in the storming d. Used or will use the entire First Draw PPP Loan on
of the Capitol, the Interim Final Rules regarding the or before the expected date of receipt of the Second
OSecond Paycheck Protection Program (PPP) were Draw PPP Loan.
released by the Small Business Administration (SBA). The
Second PPP, included in the Economic Aid to Hard-Hit Certain Businesses Excluded
Small Businesses, Nonprofits, and Venues Act (Economic Second PPP Loans exclude specific entities detailed below.
Aid Act) with a pool of over $284 billion. It was enacted on 1. Businesses that are permanently closed. However,
December 27, 2020. temporarily closed businesses are eligible.
2. A business concern or entity primarily engaged in po-
To qualify for a Second PPP loan, you must meet the litical activities or lobbying activities … including any
following criteria: entity that is organized for research or for engaging
1. The applicant must be a business, sole proprietor, in advocacy in areas such as public policy or political
independent contractor, nonprofit organization, eligi- strategy or otherwise describes itself as a think tank
ble self-employed individual, veteran’s organization, in any public documents.
housing cooperative, and/or tribal business, eligible 3. Certain entities organized under the laws or with
for the First Draw PPP loan, eligible 501(c )(6) organi- specific ties to the People’s Republic of China or the
zation, eligible nonprofit new organization, or small Special Administrative Region of Hong Kong.
agricultural cooperative that: 4. Any person required to submit a registration state-
a. Has 300 or fewer employees or if it is an eligible new ment under Section 2 of the Foreign Agents Registra-
organization with more than one physical location, tion Act of 1938 (22 U.S.C. 612).
or meets the North American Industry Classification 5. A person or entity that receives a grant for shuttered
System (NAICS) code beginning with 72. venue operators under Section 324 of the Economic
b. Experienced revenue reduction of 25% or greater in Aid Act.
2020 relative to 2019. 6. Any business engaged in illegal activities.
c. Received a First Draw PPP Loan. 7. Businesses in which the President, the Vice President,

8 NBIZ ■ February 2021