- To be eligible, you must demonstrate that your gross receipts in any quarter of 2020 are down at least 25% compared to the same quarter in 2019.
- Generally, borrowers may receive a loan amount of up to 2.5X the average monthly payroll costs during the year before the loan or the previous calendar up to a maximum of $2 M. Hard hit industries in the food and hospitality industries can receive 3.5 x their payroll.
- To be eligible, you must not employ more than 300 people and have used the full amount of your first PPP loan.
- Eligible entities include: businesses, specific non-profit organizations, housing co-operatives, veterans' organizations, tribal enterprises, self-employed individuals, sole proprietors, independent contractors, and small agricultural co-operatives.
- Forgivable expenses will equal the sum of your payroll costs, as well as covered mortgage, rent, and utility payments, covered operations expenditures, covered property damage costs, covered supplier costs, and covered worker protection expenditures incurred during the covered period. The same 60/40 allocation between payroll and non-payroll costs that applied to initial PPP loans will apply.
Those interested in more information are welcome to register for an Aminar on Wednesday or Thursday of this week.
RE #3, "used the full amount of your first PPP loan." Does this mean within the covered period? Or just used prior to getting a new PPP loan?
Do you have to already received forgiveness for your first PPP loan?
No. I have not even applied yet. I have everything ready but until they did the clarification my accountant had told me not to apply. Now that that is cleared up that the forgiven part will not count as income I am going to send every thing in.
@Mike Tatum We are still working on our forgiveness application.
Are you familiar with how that would work?
Re: # 2 - Since these loans will not be issued until 2021, should we assume the year prior means 2020?
No. The bill explicitly says 'monthly payroll costs during the year before the loan or 2019' See section 311(a)(37)(C)(i)(I)(aa)(AA) and (BB) on page 148 here:
https://rules.house.gov/sites/democrats.rules.house.gov/files/BILLS-116HR133SA-RCP-116-68.pdf
Re # 1 & #2. If we already received a PPP loan are waiting on our forgiveness to be processed by the Bank and SBA, do we have wait to file for a 2nd PPP?
And does our cash position (which is ok) have any barring on qualification?
U do not have to wait.
Question; maybe for the webinar. If your business opened at the end of 2019 but didn't have a full quarters worth of sales data and received a PPP in the first round what will they use as a reference for the second round to show revenue was negatively impacted?
I'm not so focused on new loans. My clients probably won't qualify. But what matters hugely for my clients are:
The open question regarding #2 is that my clients have already applied for and received forgiveness for PPP loans, so how do they make sure the EIDL advance ($10,000) forgiveness is documented?
If they already got forgiven, they landed up with a small loan balance for their EIDL advance. These should now be reimbursed.
Any idea when the 12/23 webinar recording and presentation is going to emailed to attendees? I was hoping to share it in my association newsletter that goes out on 12/28. It was very informative.
Thank you, Kim. The recording and slides will be shared via email this afternoon as well as posted on this site and across all socials.