ppp round 2

The second round of the Paycheck Protection Program (PPP) is now open. User account menu. Any purchase done from this link is subject to final terms and conditions of the website that is selling the product. Keeping up with the latest in rules and regulations can be dizzying, but we’re here to help. Please note: the White House is working on expanding eligibility. For instance, if we pay an annual fee for software during the applicable period, is that entire amount eligible for forgiveness or would we need to prorate cost? Borrowers may elect either an 8 or 24 week period in which to apply their PPP #2. For a Second Draw PPP Loan, you may borrower up to 2.5 times your average monthly payroll, excluding any individual compensation or self-employment income above $100,000, but the maximum loan amount is capped at $2 million per borrower. Congress has approved a Covid-19 relief package worth $900 billion. Hi Nick, since everything else seems to be paid or incurred during the covered period, you may want to go ahead with the strategy you suggested. • Your business has less than 300 employees (that’s full-time, part-time, or seasonal) Does this mean a new company can apply and qualify? 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. We show you how to do that and how to fill out the second-draw application step-by-step here. All borrowers must still keep their employment records for four years from the date of forgiveness application submission. Second Draw PPP loans – The Economic Aid Act authorizes a second round of PPP loans (called “Second Draw loans”) to borrowers who have already received a PPP loan. Pursuant to the Federal Trade Commission’s guidance of the public in conducting its affairs in conformity with legal requirements comprised in 16 C.F.R. You’re not necessarily ineligible due to the reasons you mentioned. Am I qualified for the 2nd-round PPP loan? This includes any vandalism, looting, or damaged property that was not covered by insurance or any other compensation offered. To be eligible for a second loan, the business must: Have been in operation on February 15, 2020 and employ 300 or fewer employees. Hi John! Introducing no-cost, low-cost, and premium employee benefits. With Round 2 of the Paycheck Protection Program (PPP) ready to kick-off the second week of January for community-based lenders, businesses may be wondering where they should go to apply for a first or second draw PPP loan.For many businesses, the most natural place to … PPP Round 2 application reports are now available through Gusto. This would be a round 2 application. Hi Nancy — for both first-draw and second-draw PPP loans, small businesses need to have been operational before February 15, 2020. Currently, you can get a second-draw PPP if: • You’ve used or allocated the full amount of your first-draw PPP loan By now, we know the latest round of the Paycheck Protection Program (PPP) is moving much slower than the first rounds did. 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. Press J to jump to the feed. Keep in mind that these expenses are still not covered: A number of different PPP forgiveness applications have been released, and the new bill has provided yet another. • You can demonstrate that your business has experienced a revenue reduction of at least 25 percent. 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. 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. In order to qualify for forgiveness, you must keep records and documentation (including purchase orders and invoices) for these expenses. These are community lenders who have committed to expanding economic opportunity for underserved people. How much money can I get from the PPP? The deferral period lasts until the loan forgiveness amount is determined. Kate Duffy and Reuters. I was able to secure a 1st round PPP loan because we opened 10/31/2019. What are the documents necessary for applying for 2nd round PPP? The program will be open to all … We recently released a guide to the second-draw loan application, which includes a section on how to calculate the 25% revenue reduction. Further, third-party advertisements may be posted on the Websites. The calculations for second PPP loan maximum loan amounts can be calculated by multiplying one of the following by 2.5. Further, KISS PR may post or otherwise promote on the Websites content, including editorial content, which may feature third-party products and services (a “Reviewed Product”). Businesses in the hospitality industry with NAICS Code 72, usually hotels and restaurants, may multiply their payroll by 3.5 instead of 2.5 if they are applying for a second PPP loan. All the rules still apply, and self-certified responses will receive a heavy penalty if they are found to be false. An SBA-backed loan that helps businesses keep their workforce employed during the COVID-19 crisis. Replies to my comments This gives you the flexibility to choose a covered period that works best for you. What guidance is available to determine eligibility for businesses that weren’t operational during periods of 2019? The deadline for applying for a PPP loan is March 31, 2021. The SBA is awaiting guidance whether borrowers in the first round of PPP loans can have their forgiveness amended if it was reduced by an EIDL Advance. You can take a look at our list of current PPP lenders here. Press release content from KISSPR. Get the latest articles, info, and advice to help you run your small business. This was the first PPP forgiveness application released; it was revised on June 16, 2020 and remains in use. Previous PPP guidelines reduced the PPP loan forgiveness of businesses that received an EIDL Advance by the amount of the advance received. PPP Round Two. There may be alternative size standards issued in the near future. The maximum amount a business that has not yet received a PPP loan can borrow is the lesser of: There may be exceptions to these limits for restaurants and other hospitality businesses. Your business has less than 500 full-time, part-time, or seasonal employees. Updated Jan 13, 2021; Posted Jan 13, 2021 . Applications for Round 2 of PPP loans open the week of January 11, 2021. You’ll need to demonstrate a 25 percent revenue reduction. The covered period is the timeframe in which a PPP borrower must use the funds so that it may be forgivable. As of April 10, independent contractors who receive 1099-MISC forms, sole proprietors, and self-employed individuals are eligible to apply for PPP loans. Hi Samir — one of the stipulations of eligibility for both first- and second-draw loans is that a business must have been operational before February 15, 2020 and is currently still operational. If you have not received a Paycheck Protection Program (PPP) loan before, First Draw PPP loans may be available to you. This simplified application will only require the following information: Number of employees retained due to the loan, The estimated total of the loan amount spent on payroll costs. Where can I find a list of PPP round 2 lenders? We break these down in the tables below. The content on this release does not take any responsibility directly or indirectly. 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 … Subscribe to get the latest articles, information, and advice to help you better run your small business. If you’re unsure which time frame to use, we recommend you check with your lender. These records may be reviewed and audit these loans to ensure against fraud. What does a PPP round 2 loan application look like? Hi Nic, thanks for your question. Thank you for subscribing! The new bill has clarified that the interest rate is non-compounding and non-adjustable for first- and second-draw loans. 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. Only certain businesses are eligible to receive a PPP loan, and these specifications are different for first-time loan recipients and second-draw recipients. Use of PPP Funds Congress has increased the list of expenses the PPP loans can be used towards. Here is a list of popular lenders; this list indicates whether these lenders are participating in this round of PPP. This simpler, streamlined forgiveness application was released in October of 2020 under an interim final rule that indicated borrowers of less than $50,000 would be exempt from forgiveness reductions based on reductions in FTE employees and reductions in employee salaries or wages. Keep in mind that lenders who are offering first-draw loans may be ready to distribute loans before lenders offering second-draw loans (because wading through second-draw legislation and shifting internal practices may take some time for these institutions). My business has been in existence since 1999 as a sole proprietorship. To be eligible for a first-draw PPP loan: To be eligible for a second-draw PPP loan: Businesses eligible for first- and second-draw PPP loans include: The following businesses remain ineligible for PPP loans: All PPP loans have a fixed interest rate of 1%. How is eligibility determined for businesses in business before February 15th 2020, but have no gross receipts in 2019 (business started in Jan 2020). What documentation will be required to show a quarterly difference between 2019 and 2020? 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. The Consolidated Appropriations Act 2021 includes a second round of funding for the PPP, aimed to help small businesses that remain financially impacted by the pandemic. Contact banks and lenders in your area to find out if they are supporting the PPP program. Consult an expert advisor / health professional before any any such purchase. Will Quickbooks reports be sufficient? Thank you! Once you have either a PPP1 or PPP2 loan, it’s important to understand … * These include salaries, wages, tips and commission, and are capped at a max of  $15,385 within an eight-week covered period or capped at a max of $46,154 within a 24-week covered period for each employee. These are effective as of March 27, 2020 (the date CARES was enacted); and remain effective under the new bill for both first- and second-draw loans: There were so many questions about PPP, that we grabbed them and put them in this PPP FAQ post. In such case, a disclosure statement about the Reviewed Product and the compensation that KISS PR might receive in connection with its purchase by you will be included in such posts or articles. You can get a second-draw PPP if: • You’ve used or allocated the full amount of your first-draw PPP loan The LLC is still comprised of the same members as the previous business and all the same business, assets, etc. 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. We just released a new blog post on the second-draw loan application, and we include a section on the revenue reduction calculation: https://gusto.com/blog/business-finance/second-draw-ppp-application-process#Filling_in_the_section_on_the_25_percent_revenue_reduction. Certain items are covered for all PPP recipients, round 1 and round 2, but certain items are only covered for first-draw borrowers of PPP round 2, second-draw borrowers of PPP round 2, and borrowers of PPP round 1 whose loans have not yet been forgiven. A portion of funding is being directed to Community Development Financial Institutions (CDFIs) and Minority Depository Institution (MDIs). Hi Suresh! The SBA will simplify forgiveness applications to one page for borrowers of under $150,000. Small businesses that were not operational before then are not eligible for 2nd-round PPP loans. You can also subscribe without commenting. 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. PPP Round 2 – What You Need to Know Paycheck Protection Program Round 2 is almost upon us! Now is the best time to switch. It offers up to $350,00 and an expedited approval time of just 36 hours. • Your business has less than 300 employees (that’s full-time, part-time, or seasonal) Below is the full list of covered expenses for PPP. I returned part or all of my PPP loan; can I apply for another PPP loan? The second loan can be up to 2.5 times the business’ average monthly payroll costs, up to a $2 million loan maximum (or $4 million for a corporate group) Accommodations and Food Services companies with NAICS code 72 can borrow up to 3.5 times the business’ average monthly payroll costs, up to a $2 … See the application guide for first-draw PPP borrowers here. Hi Hetal! 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 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 new bill has clarified the taxability of PPP loans and the deductibility of expenses paid for with PPP loan proceeds. Here’s What You Need to Know, Updates Made to EIDL: Here’s a Step-by-Step Guide on How to Apply, classified under Code 72 by the North American Industry Classification System (NAICS), Paycheck Protection Program Loan Forgiveness Application, PPP Loan Forgiveness Application Form 3508EZ, PPP Loan Forgiveness Application Form 3508S, Here’s How to Fill Out the PPP Loan Forgiveness Application—Your Step-by-Step Guide, https://gusto.com/blog/business-finance/ppp-round-2#PPP_round_2_loan_eligibility, You can learn more about the options here, You can take a look at our list of current PPP lenders here, https://www.theloansource.com/partners/gusto/, https://gusto.com/blog/business-finance/second-draw-ppp-application-process#Filling_in_the_section_on_the_25_percent_revenue_reduction, https://gusto.com/blog/business-finance/second-draw-ppp-application-process#Are_you_eligible_for_a_second-draw_PPP_loan, https://support.gusto.com/1840352911/Paycheck-Protection-Program-Report.htm, We’ve released a new guide on the second-draw PPP loan application, https://gusto.com/blog/business-finance/second-draw-ppp-application-process, Borrowers of PPP Round 1 whose loans have not yet been forgiven, Borrowers of PPP Round 1 whose loans have been forgiven, Business software or cloud services that facilitate business operations**, Costs related to property damage, vandalism or looting due to unrest that occurred in 2020, Supplier costs that are essential to the operations of the business, PPE that help businesses comply with federal and state COVID-19 safety guidelines (like face masks), Measures that help businesses comply with federal and state COVID-19 safety guidelines (like plastic separators). Hi Cathleen! Hi Max, glad to hear this was helpful! Unfortunately, no, this does not mean a new company can apply and qualify. We’ll break them down for you here: Remember to retain relevant records related to employment and expenses. Maximum Loan Amounts for the Hospitality Industry. Notify me of follow-up replies to my comment via e-mail. 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. If your small business has been a tax loss during the past two years can you apply for a PPP First Loan? No. Producers who were denied PPP loans or whose loan amounts did not consider self-employment compensation may now be eligible for the vital federal small business support. PPP Round 2: How To Apply For A First Or Second Draw PPP Loan; PPP … 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. We will make changes here as they become law. You can learn more about the options here. In the first round, a PPP loan could be used … 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. If you have any further questions beyond the scope of what our blog posts cover, we recommend you get in touch with your lender. Are we eligible to apply for round 2 of the PPP? Borrowers who fail to apply for loan forgiveness must start making loan payments within ten months of the last day of the covered period. This includes business software, tax software, HR or billing software, cloud services, or inventory tracking software. Limits to Eligibility For a Second PPP Loan. With regard to the PPP2, can I pay my highly compensated employees ($100K+) their regular pay and will Gusto’s PPP2 forgiveness report cap these employee’s compensation at the required $100K annualized? This content may contain weblinks to third-party owned or operated web sites where you can purchase Reviewed Product (“Product Link”). However, the requirement that the business was in existence before February 15, 2020, has not changed. • You can demonstrate that your business has experienced a revenue reduction of at least 25 percent (don’t worry, we’ll walk you through how to calculate and demonstrate this), You can learn more in our latest blog post on the second-draw loan application here: https://gusto.com/blog/business-finance/second-draw-ppp-application-process#Are_you_eligible_for_a_second-draw_PPP_loan. 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. 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. 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: Delivered weekly, for free. Average monthly payroll incurred within the 1‐ year period 2. For specific advice on your situation, we recommend reaching out to your lender to double-check. Will I still be able to apply? If you have already received a PPP loan from the first round, nothing has changed. There are limits to what borrowers can receive; these vary depending on the specifics of the business and whether a borrower has already received a PPP loan. How are software costs calculated for forgiveness? Is the PPP the only loan or funding option under the new bill? When applying for loan forgiveness (round one) form 3508S one page application, is the borrower required to also turn in supporting documents to the lender that is forwarding the 3508S form to the SBA for loan forgiveness? Contact Banker. Fund a second round of PPP loans of up to $2 million for businesses that received a loan during the first round. Media Contact Website: [ KISS PR Brand Story PressWire ] - Email: Media@kisspr.com. Certain non-profits (the new bill has expanded eligible businesses to include certain, Seasonal employers; the new bill has clarified the definition of a seasonal business to be one that operates for at least a 12-week period, but no more than seven months within a year or earns no more than a third of gross receipts within a six-month period, Faith-based organizations that have less than 150 employees, Housing cooperatives that employ less than 300 people, Businesses owned by lawful, non-citizen U.S. residents, Businesses owned by those who are delinquent on student loans, Businesses owned by those who have been convicted of non-fraud felonies, Organizations involved in political activities or public policy, Cannabis businesses (or any other businesses that deal with products that are illegal at the federal level), Household employers (such as those who employ housekeepers or nannies), Businesses that have defaulted on SBA or federal loans, Entities affiliated with the People’s Republic of China or Hong Kong or that have a member on their board of directors that is a resident of the People’s Republic of China, Registrants under the Foreign Agents Registration Act, Entities that have received or will receive a grant under the Shuttered Venue Operator Grant program, Request collateral or a personal guarantee, 2.5 times the average monthly payroll costs and healthcare costs, 2.5 times the average monthly payroll costs and healthcare costs in the year prior to when the loan was received or within the calendar year, 3.5 times the average monthly payroll costs and healthcare costs in the year prior to when the loan was received or within the calendar year for any business that is, Any employer who has not reduced employee wages by more than 25% during the covered period (or alternative covered period), the number of employees the borrower was able to retain because of the loan, the estimated total amount of the loan spent on payroll costs, The gross income a business is required to report will not include any PPP loan amount that is forgiven, Any expenses paid for with PPP loan proceeds that are forgiven will be tax-deductible.

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