Second PPP - 2021

I hope you successfully applied for and received your First Draw PPP in 2020. There’s a lot of money out there to help our community of restauranteurs who have been disproportionally affected by the pandemic, so please take advantage of every opportunity offered by the federal and state governments.

Main points:
Yes, you can apply for the Second Draw PPP if you received a First Draw PPP
Yes, it will be forgiven if you use at least 60% of the money on Payroll. You must also maintain employee and compensation levels in the same manner as the First PPP.
New eligible expenses, but keep in mind you should use at least 60% of it on Payroll: Second Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.
The First Draw PPP was based on 2.5x of your monthly payroll.
The Second Draw PPP is now based on 3.5x of your monthly payroll.
Deadline to apply is March 31, 2021 or when money runs out, whichever comes first.
Eligibility has changed and is now limited to those that can prove a 25% decline in Gross Receipts on comparable quarters of 2019 and 2020.
How do you prove this?

You can prove the decline in one of three ways (only one way is required):
First Method:
You or your accountant prepare a monthly or quarterly Profit and Loss statement for both 2019 and 2020. Focus on the 2nd Quarter as it is the hardest hit timeframe for most people. If your Gross Receipts declined by AT LEAST 25% in 2020 compared to 2019, you’re eligible.
Second Method:
If you’re close to 25%, but can’t make it, try using your Bank Statements as the supporting documentation.
Grab the Bank Statements for the second quarter of both 2019 and 2020, and see if your Gross Receipts (deposits and credits into your account) amount to AT LEAST 25% decline in 2020 compared to 2019. If your first PPP was deposited into your bank account, don’t worry because it will not count towards the total. You must show which amounts in the bank statements don’t count because it either was PPP money or it was related to PAYROLL.
Use the below links to read more and forward them to your CPA. A lot of this information is very new and sometimes even the CPA is not aware of the specifics. See PAGE 3 specifically.

Small Business Administration Second Draw

SBA - How to Calculate Revenue Reduction - What Documentation to Provide