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There has been new changes to the program since the video. Below are the highlights of the PPP2 Second Funding:
SBA Form 2483-SD (Second Draw Borrower Application Form)
SBA Form 2483 (First Draw Borrower Application Form)
The SBA could start receiving applications as early as the week of January 11th.
May use your original lender who approved your first round PPP draw or other Fintech companies will be offering funding.
Have fewer than 300 employees
Have used or will use full amount of first draw funds on eligible expenses.
Be able to show a 25% decrease in gross receipts in any quarter of 2020 over the same quarter in 2019 OR total annual 2019 receipts to 2020 total annual receipts. Annual tax returns will be used to substantiate the decline.
Will be able to choose a covered period between 8 and 24 weeks.
Max loan amount is $2 Million.
Loans will follow same average monthly payroll calculation of 2.5 x or (3.5 x for restaurant and hospitality industry) of your average 2019 monthly payroll costs or the twelve month period prior to the loan date (simplified calculation can use 2020 payroll period)
Please note this is based on information that is currently available and subject to change without notice. Please contact a representative from Sarinelli & Associates with any questions.
A few Highlights of the Bill:
Additional funding for those businesses that did not receive PPP money in the first round, especially minority- and women-owned businesses. In addition, it allows businesses a second chance at PPP money if they can show significant losses in 2020 over 2019 (this is still being reviewed and we will have more information soon).
Deductibility of expenses paid for by forgiven first round PPP loans are now allowed.
stimulus checks of up to $600 a person based on income And families will receive an additional $600 — up from $500 in the spring — for each dependent under 18 in the household again based on income phase out.
federal unemployment insurance bonus of $300 per week
While the new stimulus package is a much needed life line for many small businesses the challenges of receiving funds as we saw in the first round of PPP seem to be looming.
More detail of the relief package.
SBA Loan Options
wHERE Where is my Refund?
Tax & Advisory Specialists
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