Payroll Protection Program And The Economic Injury Disaster Loan 2.0

The Payroll Protection Program and The Economic Disaster Injury Loan program are back and are fully funded. The new stimulus package includes $284 billion for businesses who have been impacted due to the current global pandemic. 


What are the new changes?

  • Your business was in operations prior to February 15, 2020.
  • First-time borrowers with w2 employees, self employed and 1099 contractors are eligible to apply. 
  • Second-time borrowers can reapply if they hav less than 300 employees or experienced a 25% reduction in gross receipts in 2020 compared to 2019. 
  • Loan amount: Max is $2,000,000
  • To be eligible for full loan forgiveness, PPP borrowers will have to spend no less than 60% of the funds on payroll over a covered period between eight or 24 weeks.


Per the Journal of Accountancy, here is a list of eligible expenses for the PPP 2.0 include:

  • Operational expenses – which “means a payment for business software or cloud computing service that facilitates business operations, product or service delivery, the processing, payment, or tracking of payroll expenses, human resources, sales and billing functions, or accounting or tracking of supplies, inventory, records and expenses;”
  • Covered property damage cost – which “means a cost related to property damage and vandalism or looting due to public disturbances that occurred during 2020 that was not covered by insurance or other compensation;”
  • Covered supplier costs – which means an expenditure for goods that “are essential to the operations, … made pursuant to a contract, order, or purchase order in effect at any time before the covered period, … or with respect to perishable goods, in effect before or any time during the covered period …;” and
  • Covered worker protection expenditures – which means an operating or capital expenditure to facilitate the adaptation of business activities of an entity to comply with health and safety standards issued on or after March 1, 2020. This includes personal protective equipment and health screening in addition to a wide range of physical facility adaptations. Expenditures on residential real property and intangible property are specifically not eligible worker protection expenditures. In addition, with regard to payroll costs, benefit costs have been expanded to include employer-paid group life, disability, vision and dental insurance in addition to employer-paid health and retirement benefits.


How to apply?

  1. Gather and organize your payroll and financial documents. 
  2. Use this PPP calculator to quickly estimate your loan amount. 
  3. Use this PPP lender link to locate eligible PPP lenders. 
  4. Apply through an approved PPP lender. 


UPDATE 2.22.2021


President Joe Biden has put updates to the second round of PPP funding  starting Wednesday 2/24/2021. 


Here are 2 important updates:

  • Starting Wednesday, for 14 days, only companies under 20 employees will be able to apply
  • Sole Props, owners with delinquent loans, criminal backgrounds, and 1099's will have an opportunity to receive a loan

Keep in mind, about $150 billion out of the $284 billion offered is still available now through the end of March for business owners looking to apply.



This program is valid till March 31, 2021 or until the funds run out.  


Economic Injury Disaster Loan

The EIDL grant was part of the initial CARES Act in 2020, but funds were exhausted within months. The EIDL grant  provides small business relief up to $10,000 dollars in grants (completely free and non-repayable money) to select small businesses.


The EIDL loan can be used for the following:

  • Financial obligations and operating expenses.
  • Rent
  • Utilities
  • Fixed debt payments
  • Mortgage interest
  • Accounts payable
  • Supplier payments


Who is eligible?

  • Businesses in low-income communities.
  • Businesses that experienced a 30% reduction in gross income during any 8-week period between March 2, 2020 and December 31, 2021 compared to a comparable 8-week period before March 2 or in 2019. Also, if you meet this description and previously received a EIDL grant that is less than $10,000 you can reapply to receive the difference (those reapplying for the full grant will receive approval priority over new applicants). 
  • Your business was in operation prior to January 31, 2020,
  • Business has less than 300 employees,

Credit check? Yes

Credit score: 570 or above and no current collections.


Loan amount: Max is $150,000. Any loan over $25,000 requires collateral. 

  • Terms
    • Forgivable? No
    • 30-year term loan
    • 3.75% interest rate, 2.75% for non-profits

Are you ready apply for the EIDL or PPP?

Before you do, there are some things you should know! Here is a list of business information you will need when applying:

  1. Business entity information (Business name, EIN, business address and start date)
  2. Proof of ownership
  3. Articles of organization
  4. Operating agreement
  5. Proof of active registration (Secretary of State)
  6. 2019 tax return
  7. 2020 total income
  8. 2020 total expenses
  9. 2019 total payroll (940, 941 or 944 payroll tax return)
  10. 2020 total payroll (940, 941 or 944 quarterly payroll tax return)
  11. Payroll docs - W3 if needed
  12. 2019 1099s for contractors
  13. Financial statements for the last 3 years.
  14. 2020 Financial statements that report a reduction in income loss compared to 2019. 
  15. W9 for contractors
  16. Current rental lease
  17. Current utility bill
  18. Business owner driver license
  19. Voided check and/or bank statement


What do you need to qualify?

You need to meet the size standards and the definition of a small business that comes under the SBA. If you meet such qualifications then you can apply for the loan through their website. 

You can receive funds within days once you have successfully applied for the loan.  You’ll also need the following:

  1. Payroll documentation (941, 940),

  2. Owner’s driver’s license,

  3. Articles of incorporation/organization,

  4. SBA form 1919,

  5. 12-month Profit & Loss Statement,

  6. Mortgage statement/rental lease and,

  7. Utility bills


Are your financial statements prepared?

Don't miss out on this second round of funding due to inaccurate financial records. Last round, we helped over 300 businesses qualify and get access to this funding. Our CFO financial statements review is ready to help your business organize all documents, estimate payroll costs and estimate operating costs: Schedule your session here:


Remember, every dollar counts. 
CFO for Women
We help women-owned enterprises improve their decision-making and boost their bottom line. 

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