PPP Loans, Round 2: Getting Started

The Small Business Administration has released the loan applications for PPP Second Draws PPP Second Draw Borrower Application Form (1.8.2021).pdf (sba.gov).   Banks are beginning to accept applications this week.

RDG+Partners recommends gathering your information as soon as possible to 1) Determine your eligibility for the loan and 2) Calculate your average monthly payroll for purposes of determining the loan amount and completing your application.

A summary of the eligibility requirements is as follows. Organizations must:

  1. Show a 25% reduction in revenue during ANY quarter in 2020 as compared to the SAME quarter in 2019.    
  2. Have less than 300 employees
  3. Have used all or expect to use all of the PPP loan from the first round

Here are some key considerations for PPP round 2:

  1. The application will be similar to the first round and the loan amount is based on average monthly payroll costs. For PPP round 2, you are able to use average monthly payroll costs for either 2019, 2020 or the immediate 12 preceding months from the date you apply (ex. if you apply in February 2021, you can use 2/1/20 – 1/31/21). You should review these different payroll periods now to determine which period will maximize your loan amount.
  2. As a reminder, monthly payroll includes all forms of wages, health insurance, 401k retirement contributions, state unemployment taxes, and also now includes employer paid vision, dental, group life and disability insurances. Wages are limited to $100k annualized per person.
  3. Loans over $150k will have to provide payroll information AND support for the 25% decline in revenue with your application.
  4. Loans under $150k will only have to provide support for payroll information at this time.

If you would like assistance in determining your eligibility for PPP round 2 or calculating the average monthly payroll costs for purposes of determining the loan amount, please reach out to RDG+Partners advisor. We have a dedicated team of professionals ready to help clients determine loan eligibility and maximize loan amounts.

For more information, call us at 585-673-2600.



RDG+Partners wants to be the primary advisor for motivated business owners. The firm is committed to providing boutique level accounting, tax and business consulting services to the Rochester, NY community.