Paycheck Protection Program
Update: The SBA recently adjusted the rules specific to Schedule C filers, allowing them to use their gross income to calculate eligible loan amount. If you are a Schedule C filer, and are choosing to use your gross income to calculate your loan amount, please be sure to select the appropriate application specific to this scenario.
On December 27th, legislation passed another round of funding for the Paycheck Protection Program (PPP).
For your convenience, we have outlined the major eligibility criteria for Second Draw PPP Loans to help you determine if your business would qualify for this funding. Included is an outline of supporting documentation which will need to accompany the application. You can find this information below:
- All funds from the first PPP loan must be used for eligible purposes prior to the disbursement date of your second PPP loan.
- Your business must have experienced a 25% reduction in revenue in any quarter of 2020 as compared to 2019 or annually in 2020 as compared to 2019 (excluding any PPP funds previously received). Documentation supporting this revenue decline will be required with the application:
- Annual reductions of 25% require the business tax return for FY2019 and a company prepared income statement for FY2020
- Quarterly reduction of 25% in any one quarter will require company prepared quarterly financials (or bank statements) for both FY2019 and FY2020
- Payroll records - if we were the Lender for your first PPP Loan and you want to use FY2019 payroll to determine the maximum loan amount, then no additional records are required at this time. If you are opting to use FY2020 to determine maximum loan amount, we will require supporting payroll records for FY2020.
- 2019 Business Tax return (If we don’t already have it on file for businesses reported on Schedule C)
As more guidance and information on government relief programs is issued, please rest assured that we are paying close attention to aid you in the best way possible. For information on the PPP, please see below:
Important links for PPP funding: