Payroll Protection Program (PPP) Part III


Most of Los Angeles has — at least in some fashion —  reopened for business. And the increased traffic on the roads, along with many local businesses being, if not full, certainly fuller than they’ve been at any point in the last 12 months, are all signs our economy is trending in the right direction.

All of this said, however, many businesses are still struggling. Debt accrued during the lock-down coming due and earnings still clocking in well below average are among the many factors bound to make the much anticipated *recovery* a rather shaky affair.

With this realization in mind, the federal government is rolling out round three of the Payroll Protection Program (PPP) funding. What does PPP Part III offer small businesses? And who qualifies? Let’s take a closer look at the recently released details…

Key Provisions of PPP Part III

  • The Consolidated Appropriations Act authorized a third round of Paycheck Protection Program (PPP) loans.
  • The Biden administration is specifically aiming to assist very small and previously under-served businesses.
  • First-Draw PPP loans are available for up $10 million or 2.5 times your average monthly payroll, whichever amount is smaller.
  • Second-Draw loans for up to $2 million are available if you’ve used all of your 1st or 2nd round funds.
  • 100% of your loan are likely to be forgiven, assuming you’re following the guidelines.
  • Both PPP and EIDL loans are available.

Changes That Separate PPP Part III From Prior Rounds

  • PPP Loan calculation formula has been revised to ensure more funding is available to sole proprietors, independent contractors, and self-employed individuals.
  • An additional $1 billion has been allocated for sole proprietors, independent contractors, and self-employed individuals in low-and moderate-income areas.
  • Small business owners with non-fraud related felonies are now eligible for PPP funding.
  • Business owners with delinquent federal student loans are now eligible for PPP loans.
  • Non-citizens lawfully residing in the US can apply for PPP loans using a Taxpayer Identification Number.

 Round Three Funding Overview

  • First draw PPP loans are available up to $10 million or 2.5 times a business’s average monthly payroll.
  • Second draw loans are available up to $2 million.
  • Round three loans are 100% government guaranteed, require no collateral or person guarantee, and the interest rate is 1% and matures in five years.

Who Qualifies For PPP Part III?

  • If this is your first draw, your business must have 500 or fewer employees; if this is your second draw, your business must have 300 or fewer employees.
  • Restaurants and hotels with 500 or fewer employees per location, or 300 or fewer for second draw loans.
  • Independently owned franchises.
  • Self-employed workers, independent contractors, gig workers, and sole proprietors.
  • Tax-exempt nonprofit organizations, tax-exempt veterans organizations, and certain tax-exempt tribal owned-business.
  • Certain local-based and independently owned or nonprofit public broadcasting news agencies with 500 or fewer employees.

Is Your Business Eligible for PPP Round III?

As with every other round of PPP funding, there’s a fair amount of red tape to cut through in the application process. So, if you’re wondering whether your business has a shot to capitalized on round three PPP funding, I strongly encourage you to get in touch for a FREE consultation.


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