New round of PPP funding FAQs

Hi Seller Community!


Square Capital is excited to participate in the new round of PPP loans. Whether this is your first or second PPP loan, you may be eligible to apply. While we are not ready yet, we expect to start accepting applications for this latest round of PPP soon.


We are currently creating a simple online form to make applying for a loan easy. Once our application is available, we will be rolling it out to eligible sellers over time to ensure we can process them as quickly as we can. Please keep an eye on your inbox and Square Dashboard for updates with information on how to apply if you’re eligible. Currently, only businesses with a Square account will be able to apply through Square Capital.  


Here is what we know about the program thus far. Please note that program details may change, and we will update this page as we get more information.


Who can apply?

  • If this is your second PPP loan
    Sole proprietors, independent contractors, self-employed persons, and small businesses with up to 300 employees in operation at least since February 15, 2020, who experienced at least a 25% decrease in revenue in a quarter in 2020 relative to a quarter in 2019, and who have already used or will use the full amount of their first PPP loan, are eligible to apply.
  • If this is your first PPP loan
    Sole proprietors, independent contractors, self-employed persons, and small businesses with up to 500 employees in operation at least since February 15, 2020.

How can these funds be used?

  • Payroll costs (salary, wages, commission, tips)
  • Employee benefits (healthcare and retirement benefits)
  • Mortgage interest payments (not including payments on the mortgage principal)
  • Operations costs (software or cloud computing service)
  • Rent
  • Utilities
  • Property damage caused by public disturbances in 2020
  • Supplier costs
  • Worker protection expenses (marks, plexiglass shields, gloves, etc.)


Loans used to cover these costs are eligible for forgiveness, if at least 60% of the loan is used toward qualifying payroll costs and the rest of the loan is used toward the other uses listed here. Any funds going toward non-covered expenses will not be forgiven. Note: If you’re self-employed with no employees, your full loan is eligible for forgiveness regardless of how the funds are spent.


For more information on loan forgiveness, check out our PPP Forgiveness Page or visit the SBA’s PPP website


How should I prepare?

Preparing your 2019 or 2020 taxes or getting a payroll report from your payroll provider (if you have one) are the best things you can do ahead of time. If you don’t have employees, you’ll need to have a prepared 2019 or 2020 1040 Schedule C form to upload (your taxes don’t have to be filed yet). Whether you apply through Square Capital or with another lender, you’ll need the same documents and information. 


Please note:

Make sure any numbers you enter in the application match your supporting documents exactly. It’s also important to upload the exact documents required during the application process. Incorrect documents could result in a delay of your application. For the most up-to-date requirements, visit the SBA website



If you are applying for a second PPP loan, your business needs to have experienced at least a 25% decline in revenue in a quarter in 2020 relative to the same quarter in 2019

  • This can be calculated on a quarterly basis using quarterly financial statements or bank statements, or on an annual basis using tax forms for the full year 2020.

Determine if you are an employer or non-employer

  • You are an employer if you filed a W-2 for at least one employee including yourself. You are a non-employer if your business didn't file a W-2 for any employee including yourself.

Calculate your average monthly payroll or income 

  • If you’re an employer, it’s payroll. Non-employers will calculate net profit.


Organize business and personal information

  • You’ll need things like your government ID, SSN, and EIN to complete the application. 


Verify your business was operational on February 15, 2020 

  • The PPP does not apply to businesses started after this date.


Confirm if you had employees on February 15, 2020

  • If you don’t employ anyone, your requirements will be different. Either way, the SBA needs to see documentation. 


What should I expect from Capital?

  • We’ll reach out via email and your Square Dashboard if you’re eligible to apply. Then you can complete the PPP loan application on your Square Dashboard.
  • Applications will then be reviewed by Square Capital. Next, the Small Business Administration (SBA) reviews applications on their own timeline.
  • If your application is approved by the SBA, funds will then be deposited into your linked bank account in 1 to 10 calendar days after SBA approval. 


For more information, and additional FAQs, visit our Paycheck Protection Program article


Gestora de la Comunidad de Vendedores / Seller Community Manager, Square
Message 1 of 145
144 REPLIES 144

Re: New round of PPP funding FAQs

Thank you for the update!!

Message 2 of 145

Re: New round of PPP funding FAQs

Good morning....does Square have any idea when we (businesses) will be able to apply for the next round of PPP Funding?  

Message 3 of 145

Re: New round of PPP funding FAQs

My concern is that Square says it is coming but have not heard...do we go to other lenders?  The monies will run out quickly I am sure.  


An answer from square would be helpful.



Message 4 of 145
Beta Member

Re: New round of PPP funding FAQs

Hi, Just to let everyone know, you can apply with more than one Lender for PPP, you just can only accept the loan from 1 lender. I would suggest applying with you local bank, just in case square will not be accepting application anytime soon. 

amber fair
Message 5 of 145

Where is the application? Re: New round of PPP funding FAQs

My bank won’t let me apply since I had the first PPP through square. Where is your application? 

Message 6 of 145

Re: New round of PPP funding FAQs

My other business bank already has the PPP applications on their home pages for the first and the second round of PPP grants. When do you expect to have yours up and running. I filed the forgiveness documentation, but my dashboard still shows as forgiveness request pending. I was all used for payroll. I'm concerned if I wait for your site to get  the second round of PPP, I might lose out due to the first come first serve basis.

Message 7 of 145

Re: New round of PPP funding FAQs


The U.S. Small Business Administration, in consultation with the U.S. Treasury Department, will re-open the Paycheck Protection Program (PPP) loan portal to PPP-eligible lenders with $1 billion or less in assets for First and Second Draw applications on Friday, January 15, 2021 at 9 am ET. The portal will fully open on Tuesday, January 19, 2021 to all participating PPP lenders to submit First and Second Draw loan applications to SBA.

Earlier in the week, SBA granted dedicated PPP access to Community Financial Institutions (CFIs) which include Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), Certified Development Companies (CDCs), and Microloan Intermediaries as part of the agency’s ongoing efforts to reach underserved and minority small businesses.

Message 8 of 145

Re: New round of PPP funding FAQs

Thank you!

Message 9 of 145
Beta Member

Re: New round of PPP funding FAQs

@IsabelRangel A very well worded explanation of the timeline as it stands now.  Congress intended to give underserved communities (who were left out widely in the first round) a chance to get their applications into the pipeline for a first draw.


I’ll add this for those who are wondering.  I’ve seen sites like Nav.com and lendio.com are accepting applications.  Don’t let this fool you.  They won’t start processing those applications until Friday or Tuesday, depending on their total assets.  But at least you’ll know your application is in the queue to be processed one they start doing so.  I know because I called them and asked.  My bank (Fifth Third in Cincinnati) told me the same thing.  They are ready, but won’t roll it out until Tuesday, since they are such a big bank with much more than $1B in assets.

Message 10 of 145