NFIB to Small Businesses: Prepare Now for PPP Round 2

Date: January 14, 2021

PPP Loan Program Re-Opens for First and Second PPP Loans – NFIB Ready to Help

Update: On Tuesday, March 30, 2021, the PPP Extension Act of 2021 was signed into law. It extended the application deadline for PPP loans to May 31, 2021, or until funds run out. 

Paycheck Protection Program (PPP) loans – both first and second loans – have been extended through March 31, 2021 or until the program’s funding runs out. On Tuesday, January 19, SBA will begin taking applications for first- and second-draw loans at all participating PPP lenders. The application process reopened for loans at community financial institutions on January 13, and reopens at smaller lenders – those with $1 billion or less in assets – on Friday, January 15.

Small businesses must apply for PPP loans through a qualified financial institution, not through the SBA. Both the first and second loans are eligible for forgiveness when the loan’s funds are used according to the terms and conditions of the program.

First PPP Loan


  • 500 or fewer employees (including sole proprietor, independent contractor, or self-employed individual)
  • Been in business prior to February 15, 2020

SBA Documents:

Second PPP Loan


  • 300 or fewer employees (including sole proprietor, independent contractor, or self-employed individual),
  • 25% or more reduction in gross receipts in Q1, Q2, Q3, Q4 of 2020 compared to same quarter in 2019 or 25% reduction in annual receipts in 2020 compared to 2019.
  • Used all the funds from the first PPP loan (not required to have applied for forgiveness yet)
  • Been in business prior to February 15, 2020

SBA Documents:

Loan Amount Calculation

Loan amount is based on 2.5x the average 2019 monthly “payroll” costs, 2020 monthly “payroll” costs, or measured over the 12 months preceding the loan. Businesses in hospitality and restaurants (NAICS Code 72) are allowed 3.5x average monthly payroll.

More Resources from NFIB

For more information on the PPP as well as EIDL and other business-friendly changes passed in the federal government’s December 2020 COVID-19 recovery package, see NFIB’s Recovery 2.0 Fact Sheet, join in NFIB’s COVID-19 webinar series or go to NFIB’s Coronavirus Resources hub.

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