Welcome to our special edition focused on the updated Paycheck Protection Program (PPP 2.0). As businesses continue to navigate the challenges posed by the evolving economic landscape, understanding the nuances of PPP 2.0 is crucial. This newsletter serves as an informative guide on the program’s eligibility, application processes, and forgiveness criteria, aiming to clarify and simplify these aspects for you.

Understanding PPP 2.0: What’s New?

PPP 2.0 is an extension and modification of the original Paycheck Protection Program, introduced to further assist small businesses impacted by the pandemic. Key updates include revised eligibility criteria, the introduction of second draw loans, and expanded forgivable expenses.

Eligibility Criteria for PPP 2.0

  • Size of Business: The program is targeted at small businesses with 300 or fewer employees, a change from the 500-employee threshold in the original PPP.
  • Revenue Reduction Requirement: Businesses must demonstrate at least a 25% reduction in gross revenues in any quarter of 2020 compared to the same quarter in 2019.
  • First-time and Second-time Borrowers: The program is open to both first-time borrowers and those seeking a second PPP loan.

Application Process: Steps to Follow

  • Documentation: Prepare necessary documentation including payroll records, tax returns, and proof of revenue reduction.
  • Choosing a Lender: You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, credit union, and Farm Credit System institution that is participating.
  • Filling Out the Application: Complete the PPP loan application form, which can be found on the SBA website or through your chosen lender.

Loan Forgiveness: What You Need to Know

  • Forgivable Expenses: PPP 2.0 expands forgivable expenses to include supplier costs, worker protection expenses, and operational costs, in addition to payroll, rent, utilities, and mortgage interest.
  • 60/40 Rule: To qualify for full loan forgiveness, at least 60% of the loan must be used for payroll costs.
  • Forgiveness Application: Borrowers can apply for forgiveness once all loan proceeds for which the borrower is requesting forgiveness have been used.

Best Practices for Maximizing Loan Forgiveness

  • Maintain Employment and Compensation Levels: Avoid reducing the number of staff or cutting salaries to ensure maximum loan forgiveness.
  • Keep Accurate Records: Maintain thorough and accurate records of how PPP funds are used, to simplify the forgiveness application process.
  • Stay Informed: Keep up-to-date with the latest guidelines from the SBA, as regulations surrounding PPP loans may continue to evolve.


PPP 2.0 is an essential lifeline for many businesses striving to overcome the financial challenges of recent times. By understanding and meeting the updated criteria, businesses can not only benefit from the financial support but also position themselves for a stronger recovery.

For further assistance or more detailed information, consult with financial advisors or directly contact the SBA or your lender.

Stay tuned for our next newsletter, where we will explore more strategies and programs designed to support businesses in these challenging times.