What You Need to Know About the Second Stimulus Package

What You Need to Know About the Second Stimulus Package

What You Need to Know About the Second Stimulus Package
Congress has passed the second stimulus bill (Consolidated Appropriations Act of 2021) to help small businesses that continue to struggle due to the COVID-19 pandemic.

Second Round of PPP Loans

The second stimulus package includes funding for new Paycheck Protection Program (PPP) loans. These low-interest loans are up to $10 million and the goal is to help businesses continue their operations during the pandemic.

One thing to keep in mind is that PPP Loans are designed to keep businesses open and prevent layoffs. So, the main expectation is that the businesses maintain their pre-pandemic workforce.

Under the second stimulus package, small businesses can apply for the second round of Paycheck Protection Program (PPP) loans.

If you already got a PPP loan, you must use your funds to become eligible for the second round. However, second-time borrowers are only eligible for PPP loans up to $2 million.


  • 500 or fewer employees (300 or fewer employees for second-time borrowers)
  • At least a 25% reduction in gross revenue in one or more quarters of 2020 compared to the year before
  • Remember these loans are fully forgivable and first-come, first-served!

Qualifying expenses include:

  • Employee wages (at least 60% of your PPP Loans must be used for payroll to get full forgiveness)
  • Operating expenses (such as rent and utilities)
  • Mortgage interest
  • Property damage, supplier costs, and worker protection expenditures

What is the PPP Loan Amount You Can Get

The amount you can get is equal to 2.5 times your average monthly payroll costs. However, restaurants or certain hard-hit businesses can get an amount equal to 3.5 times their average monthly payroll costs.

The Deadline

You can apply for a  PPP Loan from January 13, 2021, until March 31, 2021.

More EIDL Grants

As you might know, the Economic Injury Disaster Loans are not forgivable. These are low-interest 30-year loans of up to $150,000. Under the EIDL you can receive emergency loan advances of up to $10,000. However, you already know that with the previous bill, businesses got $1,000 per employee instead of the full $10,000. This time you may get the full $10,000 minus any EIDL grant you received. But do not get your hopes up until we get the final word from the SBA!


  • Located in a low-income community
  • Economic loss greater than 30% due to Covid-19
  • 300 or fewer employees


Your PPP loans or EIDL loans will not be taxed! If you have used your PPP or EIDL loans for deductible business expenses, you can take those deductions as you typically do.

Employee Retention Tax Credit

CARES Act provides a tax credit of up to $14,000. To benefit from this special tax credit, your business must fully or partly be suspended during any calendar quarter in 2020 due to a government COVID-19 related order or experienced a 50% or greater decline in gross receipts during any 2020 calendar quarter.

Next Steps and the Application Process

It is still not clear when the EIDL will be available to businesses. However, the SBA has started accepting PPP loans. Our consultants are available to answer your questions. You can also talk to your lender about the next steps.

Application Forms

Form 2483 – First Draw Borrower Application (Updated 1/8/21)
Form 2484 – First Draw Lender Guaranty Application 
Form 2483-SD – Second Draw Borrower Application (Released 1/8/21)
Form 2484-SD – Second Draw Lender Guaranty Application (Released 1/8/21)

Reach us at 412-396-1633 or email duqsbdc@duq.edu.

Next Steps

Our consultants here at the Duquesne University Small Business Development Center can assist you with your small business. We offer no-cost business consulting in Southwestern PA. You can request consulting here.


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