How much money is available?

The most recent stimulus relief bill contains $284 billion for a second round of loans to small businesses under the government’s Paycheck Protection Program. This amount is less than the $349 billion slotted for the first round, which was gone in just under two weeks. Congress then allocated an additional $320 billion, and those funds did not run out but this could be because of the confusion surrounding the program at the time. The point is that it seems very likely that because the forgiveness and tax rules are clearer, this money is likely to go faster.


On January 11, 2021, the PPP Program reopened only to community financial institutions (“CFI”), with the goal of addressing potential barriers to access to capital for minority, underserved, veteran, and women-owned business. Once the SBA reopens the portal for remaining lenders, those lenders will begin to take applications. We do know that business owners will have less than three months to apply, as the last day to apply for a second PPP loan is March 31, 2021. 

Who can qualify?

To qualify, you must meet the following five requirements:

  1. You must be a business, independent contractor, eligible self-employed, sole proprietor, a type of nonprofit that was eligible for the first round of loans, a veteran’s organization, tribal business council, housing cooperative, eligible 501(C)(6) organization.
  2. Have 300 or fewer employees unless you are a business that has a NAICS code beginning with 72 or an eligible news organization with more than one physical location.
  3. Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020. This is a new rule, and one way to calculate this is to compare your quarterly gross receipts for one quarter in 2020 as compared to the same quarter in 2019. Alternatively, if you were in operation in all four quarters of 2019, if you can show a 25% or greater reduction in 2020 compared to 2019, you can qualify. Additionally, if you were not operational at all in 2019, but were operating before February 15, 2020, and had gross receipts during the second, third, or fourth quarter of 2020 that demonstrate a 25% reduction from the first quarter, you can qualify. Gross receipts is defined as “all revenue or accrued (in accordance with the entity’s accounting method) from whatever source, including from the sale of products or services, interest, dividends, rents, royalties, fees or commissions, reduced by returns or allowances.” For independent contractors, or self-employed, look to your Schedule C.
  4. Received a first draw PPP loan.
  5. Have used or will use the full amount of the First Draw PPP Loan on or before the expected date on which the Second Draw PPP Loan is disbursed to the borrower.

The application:

Payroll costs: there is some nuance and variation, but generally, the maximum amount you can apply for is the sum equal to two and a half months of your average monthly payroll. The application does require an applicant to compare quarters from 2019 to 2020 showing the 25% reduction.


The Second Draw loans are eligible for forgiveness on the terms and conditions as the first Draw PPP loans. Applying for forgiveness will involve providing documentation to substantiate the 25% reduction in income, such as tax returns, pay roll, or bank statements.


Wick Law, LLC is a small business legal practice, representing owners, investors, and entrepreneurs in all aspects of commercial, corporate, and business law, estate planning, contracts and negotiations, business litigation, and real estate. For more information: Contact 614-572-6366, visit, or email us at  Wick Law, LLC is located in Columbus, Ohio.


(Materials in this article have been prepared by Wick Law, LLC for general informational purposes only. This list is for educational purposes and is not to be considered exhaustive. More items could be added to this checklist based upon the type of transaction or industry standards. These materials do not, and are not intended to, constitute legal advice. The information provided is not privileged and does not create an attorney-client relationship with Wick Law, LLC or any of the firm’s lawyers. This checklist is not an offer to represent you. You should not act, or refrain from acting, based upon any information in this checklist. Wick Law, LLC maintains offices in Columbus, Ohio, and has lawyers licensed to practice in Ohio and in the United States District Court, Southern District of Ohio. The firm does not intend to practice law in any jurisdiction where the firm is not licensed.)