Skip to Main Content
Photo Courtesy of Kieffer-Starlite
Photo Courtesy of Kieffer-Starlite

Paycheck Protection Program (PPP)

ISA will provide updated links to the latest information as it becomes available. This resource does not constitute legal advice. Companies should consult with their own legal counsel before determining how best to operate their business pursuant to federal, state and local orders affecting businesses.

Paycheck Protection Program (PPP)

In early January, 2021, the Small Business Administration reopened the Paycheck Protection Program and made important changes to the existing PPP loans.

Key Documents Needed:

SBA Guidance (January 2021)

Information about New PPP Loans (January 2021)
This is an overview; seek more detailed information on each of these points.

If you never received a PPP loan:

  • First time applicants can apply through March 31, or until the new funding is exhausted.
  • Those who took advantage of the Employee Retention Credit may now pursue a PPP loan.
  • Group insurance payments can be included in payroll costs.
  • Seasonal employers have a greater flexibility in picking the 12-week period to determine payroll costs and maximum loan amount.

If you exhausted your original PPP loan:

  • A second-draw PPP loan is available for those who have fewer than 300 employees and experienced a greater than 25% reduction in gross receipts during one quarter of 2020 compared to the same quarter in 2019.
  • The loan amount is 2.5 times the average monthly payroll costs for the 12 months prior to the loan.
  • Loans may not exceed $2 million.
  • The loan may be forgiven if at least 60% of the loan is used for payroll.

Key changes to existing loans:

  • Provides that expenses paid for with PPP loans are deductible for tax purposes. (This applies to past and future loans.)
  • Expanded the type of expense available for forgiveness to include operations expenses, supplier costs, worker protection expenses (for equipment like PPE) and property damage incurred in public disturbances in 2020 that are not covered by insurance. NOTE:  The requirement that at least 60% of the loan is for payroll costs remains intact.
  • The Economic Injury Disaster Loan grant no longer reduces the amount of the PPP that is forgivable.
  • Loans for less than $150k will see a one-page application for loan forgiveness.

Archived Information on First PPP Loan Program

Loan Forgiveness Resources

    Loan Information for Borrowers

    Employee Retention Credit

    Launched on March 31, 2020, the U.S. Department of the Treasury encourages businesses impacted by COVID-19 to use Employee Retention Credit, designed to encourage businesses to keep employees on their payroll. The refundable tax credit is 50 percent of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19.

    Main Street Lending Program

    Smaller companies that were shut out of PPP funding have a new option: the Federal Reserve's Main Street Lending Program has been expanded to apply to smaller employers. The program initially was for medium-sized companies seeking $1 million or more. Now, the program offers loans as low as $500,000 and as high as $10 million. The Main Street Lending Program is separate from the Paycheck Protection Program, which is primarily designed for companies with fewer than 500 employees. There are a couple of key differences: the Main Street program works as a traditional loan—without a provision for forgiveness—but does not require payments for the first year. Sign companies could qualify for both programs.

    Expanded Employee Retention Tax Credit

    Information provided by the U.S. Chamber of Commerce

    The Employee Retention Tax Credit, a refundable tax credit, was expanded in late 2021 in several ways that are beneficial to companies:

    • The new credit is 70% on $10,000 in wages per quarter, or a maximum of $14,000 per employee through June 30. (The previous credit was a maximum of $5,000).
    • Eligibility is for those employers who saw a decline of more than 20% in one quarter of 2020 when compared to the same quarter of 2019. (Previously, the decline had to be in excess of 50%).
    • Expanded the employee cap to 500 employees from 100.
    • Employers can receive both the ERTC and the PPP Loan, but cannot use the funds to cover the same payroll expenses.