Here’s the latest on eligibility and applying for Round 2 of the Paycheck Protection Program (PPP).
As you may know, the Small Business Administration (SBA) has launched a new round of financing for the Paycheck Protection Program (PPP).
Here at Savings Bank of Walpole, we are proud to have helped bring over $39 million to our community in the first round of PPP funding.
We are ready to accept applications for this latest round. Please read our January 6 update for the basics of the program and changes that are applicable to this new round of funding.
So…will your organization be eligible to apply?
- You may indeed be eligible regardless of whether or not you received a PPP loan last year. There are eligibility differences between the two rounds of PPP funding:
- Eligibility requirements which apply to both “First Draw” PPP Loans and “Second Draw” PPP Loans (meaning you previously received PPP funding):
- You plan to maintain employee and compensation levels.
- Loan proceeds are to be spent on payroll costs (at least 60%) and other eligible expenses over an 8-24 week period.
- Any business, independent contractor, eligible self-employed individual, sole proprietor or eligible non-profit organization may apply for a PPP Loan.
- Borrowers must be in good standing with the Secretary of State.
- You must certify that “Current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant”
- Unique requirements for “First Draw” PPP Loans:
- Your organization must have 500 or fewer employees.
- Your organization must have been in business on February 15, 2020 and must not have closed permanently.
- Unique requirements for “Second Draw” PPP Loans:
- Your organization must have 300 or fewer employees.
- Your organization must have previously received a First Draw PPP Loan and will use or has used the full amount only for authorized uses.
- Your organization must have experienced a reduction in Gross Receipts of at least 25% in one quarter of 2020 as compared to the same quarter in 2019.
How will you apply?
If you believe you will be eligible for this new round of PPP funding, now is a good time to start pulling together the required documents and information:
- You’ll need to provide sufficient documentation to establish eligibility and to demonstrate the qualifying payroll amount.
- This may include, as applicable, payroll records, payroll tax filings, Form 1099-MISC, Schedule C or F, income and expenses from a sole proprietorship or bank records.
- Loan amounts will be limited to 2.5x average monthly payroll in either 2019 or 2020 (or 3.5x average monthly payroll for businesses operating under NAICS code 72: Accommodation and Food Services).
- For Second Draw PPP Loans, you’ll need to provide documentation showing a 25% or greater reduction in Gross Receipts during any single 2020 quarter versus the same quarter in 2019. Documentation may include annual tax forms or copies of quarterly P&Ls or bank statements if tax forms are not available.
- Any forgiveness amount of a prior PPP Loan received in calendar year 2020 is excluded from the borrower’s Gross Receipts.
- The calculation of Gross Receipts is addressed on pages 21-23 of the SBA Interim Final Rule.
Here’s how to get started.
You can begin the application process by clicking on the appropriate link below and following instructions for uploading supporting documentation and electronically signing wherever prompted. Don’t worry: If you are unable to complete the full application in one sitting, you’ll find an option at the top of the screen which allows you to save your application in process, and “Finish Later.“
- First Draw Non-Schedule C Filers
- Second Draw Non-Schedule C Filers
- First Draw Schedule C Filers
- Second Draw Schedule C Filers
Click Here to review the March 3rd SBW Interim Final Rule Update on Schedule C Filers
You may also want to read up on the details for this second round of PPP funding:
We encourage you to take your time and understand this new round of the PPP Loan program. We believe it is a good opportunity for financial assistance as this challenging time continues.
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Please remember that as the savings bank of our community, we are here to serve you. Feel free to contact our Commercial Lending team at 603-355-1670 or click here to email us with any questions you may have.
Senior Vice President/ Senior Lender