Page 8 - NBIZ February 2021
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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,

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