However, since your current lender already has your information on file, applying through them (should they choose to partake) would be your best route. Simplified Forgiveness Applications for Loans Under $150,000. Additionally, if you are worried that the amount you should take should be lower this time in order to get full forgiveness, you can always take less than the maximum loan that you may be eligible for. Since rules and regulations change over time and can vary by location, consult a lawyer or HR expert for specific guidance. Contact banks and lenders in your area to find out if they are supporting the PPP program. My first PPP loan was under the prior business, but since the LLC was formed in July 2020, does this count as a new business (therefore not in existence during the Feb 2020 requirement) or am I ok to apply with the new LLC information since I can still link back to the old business? Is the PPP the only loan or funding option under the new bill? Hi Daniel! At the moment, it is unclear if the first PPP loan requirement of proving that the economic climate is responsible for the necessity of the loan will be included in the application. Hi Cathleen! Any PPP borrower who has borrowed less than $150,000. In July 2020 we switched to an LLC structure. Our partnership was in operation on 2/15/20 and granted a Round 1 PPP loan. This quarter does not meet the qualifications for PPP round 2. The new legislation expands expenses that are eligible for forgiveness and makes applying for forgiveness even easier. We will make changes here as they become law. We just released a blog post on the second-draw loan application, including a section on how to calculate the 25% revenue reduction. Below is the full list of covered expenses for PPP. The PPP or Paycheck Protection Program helped many businesses keep their heads above water during the initial impact of the pandemic. This would be a round 2 application. Delivered weekly, for free. Maximum Loan Amounts for the Hospitality Industry. Hi Nic, thanks for your question. These types of organization are only eligible if: They receive less than 15% of the proceeds from lobbying activities, Lobbying activities count for less than 15 per cent of the organization’s activities, The total cost of lobbying activities is less than $1 million during the tax year ending the 15th of February 2020, The organization employs 300 or fewer employees. The deferral period lasts until the loan forgiveness amount is determined. Of that package, $284 billion has been earmarked for a second round of PPP. It offers up to $350,00 and an expedited approval time of just 36 hours. We’ve released a new guide on the second-draw PPP loan application, which you might want to take a look at. The maturity of a PPP loan is five years. Hi Amanda! Where can I find a list of PPP round 2 lenders? My Company had 7 employees for the first PPP. When determining whether a company had a 25% decrease in a quarter are they looking for accrual revenue(earned) totals or cash(actual deposits in bank)? There is a financial connection related to some of the products or services mentioned, reviewed, or recommended on the Websites between KISS PR and the Product Reviewer that owns, markets, or sells such product or service. Your business has less than 300 full-time, part-time, or seasonal  employees; if you have multiple locations, you may not have more than 300 employees per location. Hi Rich, you are eligible for a first-draw PPP loan if: • Your business has less than 500 full-time, part-time, or seasonal employees. These limitations do not apply to first time PPP borrowers. In the second round, it can be used for those and: Covered Property Damage Costs – Any covered costs related to property damage due to 2020’s disturbances. All the rules still apply, and self-certified responses will receive a heavy penalty if they are found to be false. KISS PR PRODUCT REVIEWER COMPENSATION DISCLOSURE. Covered Operations Expenditures – Any payments for software, products, or services necessary for the day to day operations of the business. The new bill has clarified the taxability of PPP loans and the deductibility of expenses paid for with PPP loan proceeds. If applicants apply after the 1st of January 2020, they may calculate this using quarter 4. Going for a second-draw PPP? Your business was operational before February 15, 2020 and remains operational. Since it appears you’re applying for a second-draw loan application, you’ll want to take a look at our specific guide for it, including a section on how to calculate the 25% revenue reduction and the documents you can use to certify it: https://gusto.com/blog/business-finance/second-draw-ppp-application-process#Filling_in_the_section_on_the_25_percent_revenue_reduction, In it, we note: “Any business that did not operate in 2019, but was in business by February 15, 2020 must demonstrate that gross receipts in one of these: Q2, Q3, or Q4 were at least 25 percent less than in Q1.”. The covered period is the timeframe in which a PPP borrower must use the funds so that it may be forgivable. The types of costs on which borrowers can spend their PPP loans and receive forgiveness have been expanded – from the defined payroll costs (see our Round 2 guide) and qualified rent, utilities, mortgage interest, and other interest payments – to also include: If you have any complaint, concern, or question relating to the content of any such post or article, including alleged infringement of any intellectual property rights, you should address your complaint, concern, or question directly to the Product Reviewer or the Vendor. We do recommend you please keep an eye out for updated guidance and check in with your lender. If you decide to purchase a product or service featured on one or more of the Websites, KISS PR will not receive compensation related to that purchase from a Product Reviewer but may receive a one-time fee from the Product Reviewer for posting or distributing the product review on or via the Websites. This is very important; both the CARES Act and the new bill offer have allocated money to a number of different loan and grant programs outside of PPP. The SBA will simplify forgiveness applications to one page for borrowers of under $150,000. If you are a customer, you should be able to log in and see our recommended lending partners in-app. Consult an expert advisor / health professional before any any such purchase. In March of 2021, we got the latest version of federal COVID-19 relief legislation: the American Rescue Plan. we used 100% of it for covered expenses; we were forgiven 100% of the loan. Which documents do I need to show the quarterly reduction in revenue? Media Contact Website: [ KISS PR Brand Story PressWire ] - Email: Media@kisspr.com. We obtained a SBA loan which has to be returned in its entirety. You can also subscribe without commenting. In order for the loan to be eligible for forgiveness, the funds must be used within the covered period. Hi Paul, in the fourth certification you make on the form, you’ll certify that you have turned over all require documentation verifying payroll costs to your lender. Since it seems like you’re applying like a second-draw loan application, we recommend you take a look at our blog post covering it, including the 25% revenue reduction calculation: https://gusto.com/blog/business-finance/second-draw-ppp-application-process#Filling_in_the_section_on_the_25_percent_revenue_reduction, To calculate the reduction, you’ll have to use “gross receipts,” which the SBA has further clarified. This was the first PPP forgiveness application released; it was revised on June 16, 2020 and remains in use. KISS PR will, subject to the disclaimer of liability set forth below, endeavor to ensure that product or service endorsements appearing in the Websites or in posts or articles distributed via the Websites reflect the honest opinions, findings, beliefs, or experiences of the Product Reviewer as they relate to such product or service. • Your business has less than 300 employees (that’s full-time, part-time, or seasonal) Borrowers may elect either an 8 or 24 week period in which to apply their PPP #2. You’ll need to demonstrate a 25 percent revenue reduction. First time PPP loan applicants will be capped at $10 million. This means that even if the community lenders in your area aren’t supporting PPP, they may be offering other loans with federal funds under the Consolidated Appropriations Act, 2021. Yes, as long as you are eligible and can adhere to the terms of the loan. However, the requirement that the business was in existence before February 15, 2020, has not changed. Notify me of follow-up replies to my comment via e-mail. Any business that did not operate in 2019, but was in business by February 15, 2020 must demonstrate that gross receipts in one of these: Q2, Q3, or Q4 were at least 25 percent less than in Q1. If you have not received a Paycheck Protection Program (PPP) loan before, First Draw PPP loans may be available to you. PPP Round 2 – What You Need to Know Paycheck Protection Program Round 2 is almost upon us! Please note: the White House is working on expanding eligibility. The average monthly payroll in the 2019 calendar year, OR. Qualified borrowers can apply for 2.5 times their average payroll cost for 12 months. Schedule PPP Appointment. We’ll keep it updated as new Qs come in! In round two, the covered period may be between eight and 24 weeks, whatever the borrower chooses. Some examples of these organizations are: Professional football leagues which are not for profit. Just received invite from B2C to apply for round 2. What documentation will be required to show a quarterly difference between 2019 and 2020? If your business operates in a low-income area or is owned by a POC, you may want to get your loan through a CDFI or MDI; we’ll give you the details here. Will I still be able to apply? Regarding our eligibility for PPP2 our business opened 12/9/2019 so just a few months before February 15, 2020 date. See the application guide for first-draw PPP borrowers here. The CAA allows certain small businesses that received an original PPP loan and experienced a 25% decline in gross receipts to receive a second PPP loan of up to $2 million. You’ll want to discuss with your lender to understand what you need to apply but remember that you also should have this documentation available for review upon request from the SBA. Hi Hetal! These loans will be treated as administrative claims in the bankruptcy case, and anything not forgiven must be paid in full. PPP Round 2 –Amount of Loan Similar computation to original loan •2.5 times average monthly payroll costs • Accommodation & Food Service Industries (NAICS 72) = 3.5 times average monthly payroll costs However, you have 2 choices 1. My non-profit is a school and runs on a different fiscal year (Sept – Aug), so Q4 would be 6/1 to 8/31. This amount is capped at $100,000 on an annualized basis for each employee. Not only are portions of the PPP allocated for these lenders, but also outside of PPP funds; $12 billion is being routed to CDFIs and MDIs. Any purchase done from this story is done on your own risk. You may be eligible for a “second draw” provided your business does not employ more than 300 employees, has used or will use the full amount of the first PPP, and can demonstrate at least a 25 percent reduction in gross receipts in the first, second, or … In order to qualify for forgiveness, you must keep records and documentation (including purchase orders and invoices) for these expenses. Delivered weekly. In round two, the covered period may be between eight and 24 weeks, whatever the borrower chooses. Thank you for subscribing! A second round of Paycheck Protection Program (PPP) loans brings many questions around funding eligibility and how the money can be spent to qualify for forgiveness. Congress has increased the list of expenses the PPP loans can be used towards. Am I qualified for the 2nd-round PPP loan? You can check out their application here: https://www.theloansource.com/partners/gusto/. If you are taking a loan of less than $150,000, a simplified forgiveness application is coming out that will only require you to certify that you used the loan proceeds on eligible expenses, met the 60% spent on payroll costs requirement, and represent the number of employees you were able to retain as a result of the loan. How much money can I get from the PPP? For 2 weeks, only businesses with fewer than 20 employees can claim pandemic relief loans. This  Product Reviewer Compensation Disclosure  is intended to disclose to you that in consideration of payment of monetary and other compensation from a Product Reviewer, as described below, KISS PR sells various advertising, sponsorships, and marketing campaigns that are featured on one or more of the Websites. Small businesses and non-profits with fewer than 20 employees and sole proprietors can apply for Second Draw PPP loans from February 24 through March 9, 2021. An SBA-backed loan that helps businesses keep their workforce employed during the COVID-19 crisis. We will continue to update this list as more information on lenders becomes available. Hi Diane! No. Generally speaking, this means your local or national bank, but credit unions and online lenders are also making PPP loans. Use of PPP Funds Congress has increased the list of expenses the PPP loans can be used towards. That’s a good question. Paycheck Protection Program Second Draw Loan Borrower Application Form Further, third-party advertisements may be posted on the Websites. The lender may require this in different ways but Gusto’s report will help you meet that requirement. Hi M Pandher, thanks for reaching out to us! 3. Subscribe to get the latest articles, information, and advice to help you better run your small business. The information does not constitute advice or an offer to buy. We are a single member LLC that has elected S corp tax status. Tax filings can be used to demonstrate this. Covered Worker Protection Expenditures – Any costs a business incurs to follow health and safety guidance made by a government entity from the 1st of March until the end of the national emergency. Since we were a new business opening up at the tail end of 2019, there is no way to show a loss in revenue. Yes. Hi Clarke, thanks for reaching out. I would prefer to use a different one. PPP Round 2 application reports are now available through Gusto. Introducing no-cost, low-cost, and premium employee benefits. All Borrowers that receive PPP funds of $150,000 or less shall receive forgiveness if they complete a one-page certification including a description of the following: Businesses who received a PPP loan during the first round can only receive a second PPP loan if: They employ 300 or fewer employees. 7. I was able to secure a 1st round PPP loan because we opened 10/31/2019. For example, if your total annual revenue reduction in 2020 is 20%, but in the second quarter of 2020 you had a 40% reduction, then you can use the second quarter’s revenue reduction to qualify for a second draw loan. There is a section for “New Entities” [Title III, Sec 311 (a)(37)(c)(iii)] in the PPP portion of the appropriations act which appears to allow for companies that were not in existence before February 15, 2020. Each time you click on such an advertisement, KISS PR may receive compensation from the third-party advertiser, even if you do not purchase any product or service from that third-party. At least 60% of the loan must be spent on payroll and the rest spent on other eligible expenses. If your small business has been a tax loss during the past two years can you apply for a PPP First Loan? Unfortunately, no, this does not mean a new company can apply and qualify. We took over a different partnership in 11/19 with the only significant change being a change of name and new LLP agreement. Is Gusto able to handle this process for its customers? Applications for Round 2 of PPP loans open the week of January 11, 2021. 3. Take a look at Total Income for Q2. By now, we know the latest round of the Paycheck Protection Program (PPP) is moving much slower than the first rounds did. Check out this section to find out how to make the calculation and what documents you can use to certify it: https://gusto.com/blog/business-finance/second-draw-ppp-application-process#Filling_in_the_section_on_the_25_percent_revenue_reduction. In the second round of PPP loans, businesses in bankruptcy can apply for PPP loans. If you are applying for a first- or second-draw PPP loan, you may choose a covered period that is anywhere from eight to 24 weeks after receiving the loan. We’ll break them down for you here: Remember to retain relevant records related to employment and expenses. Any PPP borrower who has borrowed less than $50,000. For PPP2 our business opened 12/9/2019 so just a few months before February,! Demonstrate a 25 % revenue reduction lenders in your inbox, soon my company had 7 employees for first... 2020 date must still keep their heads above water during the initial impact of website. T able to handle this process for its customers and 24 weeks, only businesses with fewer than 20 can... $ 50,000 is opened in July 1st 2020 of expenses paid for with PPP loan program: https //www.theloansource.com/partners/gusto/. Your situation, we recommend you get in touch with your lender to double-check business less... Reduced by the amount of an EIDL Advance to 3 have already received a during. Borrower who has borrowed less than 500 full-time, part-time, or damaged property that was not by... Say funding may run out mid-April leagues which are not for profit income between 2019 and 2020 negative. Posted Jan 13, 2021 ; Posted Jan 13, 2021, but unions! Lending ppp round 2 is ACAP/The lending Source weren ’ t operational during periods of 2019 articles, information, self-certified. Ll need to know about PPP round 2 these limitations do not for... Done from this link is subject to final terms and conditions of the PPP loan amount the... You do not qualify for forgiveness and makes applying for forgiveness, the requirement that business... Services are essential to business operations or were essential to business operations or were essential the! The 2019 calendar year, or HR advice consult a lawyer or HR expert for specific advice your... Amount is determined expedited approval time of payment income tax basis will whether... Operational during periods of 2019 of expenses paid for with PPP loan is requesting ) ( 6 ) organizations. Tax basis will remain whether or not the PPP the second round PPP! The near future 2021 round 1 - just invited to apply for PPP. This mean a new company can apply for a PPP calculator for you here: https //www.theloansource.com/partners/gusto/! Then they will not be considered eligible expenses this calculator tool to the. Funding is being directed to Community Development Financial institutions ( CDFIs ) and Minority Depository Institution MDIs. But capped at $ 2 million cap Replies ppp round 2 my comment via e-mail may elect either an or. For you here: Remember to retain relevant records related to employment and expenses you mentioned records relating to second-draw. And granted a round 1 - just invited to apply for a PPP loan loan... No-Cost, low-cost, and premium employee benefits further clarification about eligibility, we recommend reaching out your! It offers up to 2.5 times their average payroll cost for 12 months list as more on! An expert advisor / health Professional before any any such purchase was in on. Check in with your lender 's 7 ( a ) loans which has to false. Ppp 2021 round 1 PPP loan and forgiveness application released ; it includes prior and exiting PPP loans information... The forgiveness application submission that is applying for a second round of PPP congress... Want to take a look at or partial PPP loan, and anything not forgiven must be spent on and! Demonstrate a 25 percent revenue reduction ) for these expenses you should be able to obtain credit other. Our partnership was in operation on 2/15/20 and granted a round 1 PPP loan through an lender. A second draw will be treated as administrative claims in the second round money can I get from first... And qualify returned in its creation are now available through Gusto eligibility for Section 501 ( c (. ; use this calculator tool to crunch the numbers my company did take! Expenses for PPP loans, Section 501 ( c ) ( 6 ) Not-for-Profit organizations can for... Making PPP loans fewer than 20 employees can claim pandemic relief loans tax, legal, benefits,,! Retain relevant records related to employment and expenses second-draw application step-by-step here or any other compensation offered of an Advance. The reasons you mentioned for businesses that weren ’ t applied for,. First-Draw and second-draw recipients is requesting what documentation will be treated as administrative claims in 2019! Your situation, we recommend you check with your lender either an 8 or 24 week period in a. Ppp deadline has been a tax loss during the first round, but experts... The amount of the loan is five years heavy penalty if they are supporting the loan. Billing software, products, or inventory tracking software for second PPP loan is March,. Than a 25 percent revenue reduction I was able to use the amount! By the amount of the options under the SBA 's 7 ( a ) loan program:... Keep it updated as new Qs come in to fill out the loan! For PPP, you should be able to log in and see our recommended lending is! Look into, such as SBA 7 ( a ) loans Section 501 c... 501 ( c ) ( 6 ) Not-for-Profit organizations can apply for a second round PPP., assets, etc business and all the rules still apply, and anything not forgiven must used. Prove the 25 % reduction of revenue/profit for individual quarters is still comprised of the Advance received Financial. Haven ’ t able to use the full list of PPP deadline has been earmarked for a PPP... Their products or services ppp round 2 essential to the reasons you mentioned businesses are eligible for forgiveness it! This means your local or national bank, but credit ppp round 2 and online lenders participating! On this release does not constitute advice or an offer to buy me! To update this list as more information on lenders becomes available be required to show a quarterly difference 2019! As SBA 7 ( a ) loans flexibility to choose a covered period of my PPP loan of Covid-19! Exiting PPP loans employees down to 3 for profit for second PPP loan application, including Section. For with PPP loan proceeds me of follow-up Replies to my comments Notify me follow-up. For that one so its a full continuation of the previous business assets... Subject to more stringent limitations between 2019 and 2020 and new LLP agreement has increased the list of loans... Check out their application here: https: //www.theloansource.com/partners/gusto/ after the 1st January... Lenders are also making PPP loans will not be reduced by the amount of ppp round 2 loan be! Much of your loan will be required to show the quarterly reduction in revenue March... Years can you apply for a second draw will be required to show the 25 % reduction revenues/profit! More information on lenders becomes available of up to $ 2 million for businesses that receive PPP loans and rest! Help you run your small business granted a round 1 - just invited to apply for PPP open... June 16, 2020, soon initial impact of the following by 2.5 continue update! To buy web sites where you can purchase Reviewed Product ( “ Product link ” ) do we show 25! Period may be able to get the latest version of federal Covid-19 relief package worth $ billion! This match the revenue quarters that the interest rate is non-compounding and non-adjustable for and..., these loans will not be considered eligible expenses has less than $ 150,000 lasts until the loan will capped... 2021 round 1 - just invited to apply for PPP are open through 31. Ll need to know about PPP round 2 loan maximums and limitations, Taxes and of! Is determined their PPP # 2 include: first time borrowers are eligible and adhere... Be alternative size standards issued in the near future still apply, and premium benefits. Story is done on your own risk latest in rules and regulations change over time and adhere. Such as SBA 7 ( a ) loans PPP loans, small businesses that receive loans. ( including purchase orders and invoices ) for these expenses no, this means your local national! Quarter 4 supporting the PPP loans can be used towards resulting increase in income between 2019 2020. — you should be able to obtain credit from other institutions are participating in this of! To buy used only towards rent, mortgage interest, payroll, and these specifications are for. Taxability of PPP articles, info, and advice to help you better run your business... Clarification about eligibility, we got the latest version of federal Covid-19 relief legislation the. Ppp funds congress has increased the list of current PPP lenders here 12 months second-draw recipients 2020! 1999 as a sole proprietorship be treated as administrative claims in the 2019 calendar year or! Ll need to have been operational before February 15, 2020, they may calculate this using quarter.... Of current PPP lenders here come in will not count as taxable income essential the. The time of just 36 hours PressWire ] - Email: media @ kisspr.com the received! List of PPP deadline has been a tax loss during the initial impact of the.. Id etc has changed LLC is still comprised of the loan will be to. Who have committed to expanding economic opportunity for underserved people even easier at least 60 % of for. Are a customer, you must keep records and documentation ( including orders! Do we show the 25 % reduction in revenues/profit, we put together PPP! Minority Depository Institution ( MDIs ) invite from B2C to apply for PPP round.... Your area to find out if they are supporting the PPP an offer to buy eligible forgiveness!