White piggy bank

The Small Business Association, in consultation with the U.S. Treasury Department, opened phase 2 of the Paycheck Protection Program loan portal Jan. 11. 

This round of the PPP continues to prioritize millions of Americans employed by small businesses by authorizing up to $284 billion toward job retention and certain other expenses through March 31 and by allowing certain existing PPP borrowers to apply for a “second draw” PPP loan.

For more information or to apply, visit sba.gov.

In most cases, if guidelines are followed, the loans do not have to be repaid.

The maximum loan amount has been reduced from $10 million to $2 million. The amount most individual businesses can request is still based around a formula of 2.5 times average payroll.

PPP borrowers who already received a loan may obtain a second draw if they have 300 or fewer employees,  have used or will use the full amount of their first PPP loan and can show a 25% gross revenue decline in any 2020 quarter compared with the same quarter in 2019.

First-time PPP borrowers may obtain a PPP loan under the original terms in the CARES Act.