Do you Want to Apply for the Second Round of PPP Loan?
The COVID-19 relief bill signed by President Donald Trump consists of $285 billion available for the Paycheck Protection Program.
Here are the most Frequently Asked Questions to help you:
Am I qualified for a second round?
Before being qualified for a loan (first or second), the legislation says that you must be able to prove the following:
1. The organization has a workforce of less than 300.
2. The company operated prior to February 2020,
3. Your gross income must have declined 25 percent or more from any quarter of 2019 to 2020.
The small business must certify that they have had a 25% or more substantial sales loss and will have to equate their 2020 quarterly revenue (aka gross receipts) with their 2019 1st, 2nd, and 3rd quarters of revenue. Compared to the same quarter in 2019, a borrower must display a decrease in sales of 25% or more from at least one quarter of 2020 to qualify for a second draw PPP credit.
I have already received a loan in the last round.
Am I allowed to apply for a second PPP loan?
Yes. You can always reapply for another as long as you follow the requirements.
When is the deadline for applications?
The deadline for applications for this new round is March 31, 2021.
In the end, DHH recommends getting the 2020 bookkeeping done to qualify for the 25 %lower gross revenue test to be eligible to apply for the second round of PPP loans by the deadline of March 31, 2021, or when the funds are used up.
Please don’t hesitate to contact us if you have any inquiries will be more than happy to help you out.
January 17, 2021
January 10, 2021