If you were not in business for the entire year of 2019:
For entities not in business during the first and second quarters of 2019 but in operation during the third and fourth quarters of 2019, Applicants must demonstrate that gross receipts in any quarter of 2020 were at least 25% lower than either the third or fourth quarters of 2019.
For entities not in business during the first, second, and third quarters of 2019 but in operation during the fourth quarter of 2019, Applicants must demonstrate that gross receipts in any quarter of 2020 were at least 25% lower than the fourth quarter of 2019.
For entities not in business during 2019 but in operation on February 15, 2020, Applicants must demonstrate that gross receipts in the second, third, or fourth quarter of 2020 were at least 25% lower than the first quarter of 2020.
Calculation for PPP2:
PPP borrowers may receive a loan amount of up to 2.5 times their average monthly payroll costs in the year prior to the loan or the calendar year, up to a maximum of $2,000,000.
It is the same calculation that was done for PPP1 (since you can use 2019 data), meaning you may receive a similar amount for PPP2. Also, the bank should already have most of the information needed from the first loan submission.
Other Provisions of the PPP2 are similar to PPP1, including:
The costs eligible for loan forgiveness in PPP2 include payroll, rent, covered mortgage interest, and utilities.
PPP2 also makes the following potentially forgivable:
Covered worker protection and facility modification expenditures, including personal protective equipment (PPE), to comply with COVID-19 federal health and safety guidelines.
Supplies that are essential at the time of purchase to the recipient’s current operations.
Covered operating costs such as software and cloud computing services and accounting need.
Forgiveness eligibility for PPP2:
To be eligible for full loan forgiveness, PPP borrowers will have to spend no less than 60% of the funds on payroll over a covered period of either eight or 24 weeks — the same parameters PPP1 had when it stopped accepting applications in August.
Documentation needed for PPP2:
Documentation needed for PPP2 may be the same documentation provided to your bank for PPP1.
Each bank will give you a list of what they require.
We believe it would be most efficient to use the same bank for your PPP2 application as you used for your PPP1 since they already have your application and documentation.
We are hopeful if you use the same bank, they will not ask you to resubmit your back-up documentation.
Businesses Applying for Their First PPP Loan
If you did not apply for the first round of PPP loans, you may be able to apply during this round. Please ask your banker for more information.
