Paycheck Protection Program: Overview

Download the Paycheck Protection Program Policy Brief

Eligible restaurants and small businesses can access $284.5 billion in new PPP loans, which can be fully forgiven if proceeds are used for allowable expenses during a selected 8-week or 24-week period that begins after the proceeds are received.

An eligible NAICS 72 restaurant or hotel determines its second draw PPP loan amount by choosing an average monthly payroll option and multiplying that figure by 3.5; other types of businesses are limited to multiplying this figure by 2.5. The maximum PPP second draw loan available to any business is $2 million.

Eligibility

  • Eligible Businesses: Small businesses, sole proprietors, independent contractors and others that previously received a PPP loan can apply for a second draw PPP loan, if they satisfy the law’s requirements.
  • Ineligible Businesses: A business/organization that was not in operation on February 15, 2020; publicly traded companies; a recipient of a Shuttered Venue Operator Grant as established by the COVID-19 Relief Act; foreign-owned or operated businesses; some other limited exclusions.
  • Qualifying Business Size: Restaurants and hotels operating under NAICS 72 must employ fewer than 300 employees “per physical location,” allowing companies with multiple locations to access a second draw for each eligible location. All other eligible businesses must employ fewer than 300 employees.