Do I Qualify for the First or Second Draw of the PPP Loan?
The SBA released the new guidelines last Friday on the second round of PPP. Basically, the second round of PPP follows similar terms as the first round with a few changes.
The loan amount will be calculated equal to 2.5 times your average monthly salary in 2019 or 2020.
The Loan can be forgiven if you used the proceeds for payroll and operating expenses such as rent, interest, utility, paying supplies.
The screening criteria
There is no credit check or collaterals, or personal guarantee required by SBA.
Quick Step 1 and 2 self-assessment:
DHH has a quick two-steps process for you to evaluate if you may qualify for either the first or second round of PPP loans.
Please review Step 1 and Step 2, and see if you may qualify. If the results show that you may be eligible, please schedule a consultation with us as soon as possible by visiting our calendar https://calendly.com/dhuang-2/zoom-meeting. We will further review more details of your situation and help you to apply for the PPP program.
For First time PPP Loan:
- Your business was operational before February 15, 2020, and still open and operating now.
- You have less than 500 employees.
- You paid payroll in 2019 if you are an S corp or C corp.
- You have self-employment income, and you filed Schedule C for 2019 taxes.
- You have K-1 income if you are a partnership or LLC for 2019 taxes.
For Second time PPP loan:
- You have used up your first PPP loan.
- Your business is open and operational.
- Your company has less than 300 employees.
- Your gross revenue in 2020 any quarter is 25% less than the corresponding quarter in 2019 or
Your whole year 2020 gross sales are 25% less than in 2019.
- You have filed 2019 taxes.
- You have 2019 and 2020 bookkeeping complete to show your gross sales by quarter.
- You are an S or C corporation, and you have paid payroll in 2019 or 2020.
- You are a self-employed individual, and you have file 2019 or 2020 taxes with a schedule C with a net income showing on line 31 of Schedule C.
- You are a partnership or multi-member LLC, and you have K-1 income for 2019 or 2020 with self-employed income showing on line 14a of K-1.
As you can see, in order to qualify, your 2019 and 2020 taxes and bookkeeping must be finished already, or DHH can help you to file your taxes or complete your bookkeeping as soon as we can before the new funding run out once the online portal is open on Monday the 11th of 2021.
January 17, 2021
January 10, 2021