PPP New Funding

PPP New Funding

Paycheck Protection Program

<<New Funding for PPP Loans>>

Applications can now be accepted for the renewed Payroll Protection Program for both first-time and existing PPP borrowers. The SBA will begin accepting/processing the applications during the week of January 11, 2021

New/First-Time Borrowers

New Borrower Checklist         Click Here

New Borrower Application      Click Here

Calculation Worksheet           Click Here

New Borrower Overview        Click Here

Existing/Second Draw Borrowers

Existing Borrower / Second Draw Checklist      Click Here

Existing Borrower / Second Draw Application   Click Here

Calculation Worksheet                                   Click Here

Second Draw Overview                                  Click Here

Highlights:

  • Eligibility for New PPP Loan:
    • New borrowers – those that did not receive a PPP loan in earlier rounds may apply subject to existing and updated PPP guidance.
    • Existing PPP borrowers – those that received an initial PPP loan are eligible to receive a second loan, subject to:
      • PPP loan proceeds must be used prior to disbursement of a 2nd PPP loan
      • Businesses with a reduction of 25% or more in gross receipts in any quarter of 2020 when compared with the same quarter of 2019.
    • Must apply for new PPP funding by 3/31/21 or when funding is exhausted
    • Businesses with 300 employees or less
    • Maximum loan amount of $2 Million
    • Businesses which were not in operation on February 20, 2020 are NOT eligible
    • Entities that received a grant under the Shuttered Venue Operator Grand Program are NOT eligible
    • Interest rate on new PPP loans to be established by SBA Administrator, not to exceed 4%

Additional eligibility, definitions and guidelines:

  • Simplified Revenue Test for Loans up to $150,000 – For loans of $150,000 or less, the borrower may only submit a certification statement that it meets the revenue loss requirement as the time of loan application and provide proof of revenue loss at the time they submit a forgiveness application.
  • Ineligible entities include those entities listed in 13 CFR 120.110 except for those otherwise made eligible by statute or guidance.
  • Specifically excluded are entities involved in political and lobbying activities including advocacy such as public policy and political strategy, entities affiliated with the Republic of China, registrants under the Foreign Agents Registration Act and entities receiving a grant under the Shuttered Venue Operator Grant Program
  • Proceeds of a PPP loan can NOT be used for lobbying activities as defined by the Lobbying Disclosure Act, lobbying expenditures related to state of local campaigns, and expenditures to influence the enactment of legislation, appropriations, or regulations.

 

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New Entities Eligible for PPP Loans:

  • Housing Cooperatives defined in section 216(b) of the Internal Revenue Code of 1986 216(b) of the Internal Revenue Code of 1986 which employ no more than 300 employees.
  • FCC license holders and newspapers with more than one physical location if the business has not more than 500 employees per physical location or the applicable SBA size standard including 511 public colleges and universities that have a public broadcasting station if the organization certifies the loan will support locally focused emergency information.
  • 501(c)6 organizations if:

1) The organization does not receive more than 15% of receipts from lobbying

2) Lobbying activities do not comprise more than 15% of activities

3) The cost of lobbying activities did not exceed $1MM during the most recent tax year

That ended prior to February 15, 2020

4) The organization has 300 or fewer employees

Gross Receipts for Non-Profits and Veteran Organizations defined within section 6033 of the IRS Code of 1986.

** Professional sports leagues or organizations with the purpose of promoting or participating in a political campaign or other political activities are NOT eligible under this section.

  • Destination Marketing Organizations if:
  1. The organization does not receive more than 15% of receipts from lobbying
  2. Lobbying activities do not comprise more than 15% of activities
  3. The organization has 300 or fewer employees
  4. The organization is registered as a 501(c) organization, a quasi-government entity or a political subdivision of a state or local government.

New Eligible Expenses (Retroactive to all PPP loans unless forgiveness funds have already been received):

  • Covered Operations Expenditure—defined as a payment for any business software or cloud computing service that facilitates business operations, product or service delivery, the processing, payment, or tracking of payroll expenses, human resources, sales and billing functions, or accounting or tracking of supplies, inventory, records, and expenses.
  • Covered Property Damage Cost—defined as a cost related to property damage and vandalism or looting due to public disturbances that occurred during 2020 that was not covered by insurance or other compensation.
  • Covered Supplier Cost—defined as an expenditure made by an entity to a supplier of goods for the supply of goods that are essential to the operations of the entity at the time at which the expenditure is made and is made pursuant to a contract, order or purchase order in effect at any time before the covered period with the respect to the applicable covered loan; or with respect to perishable goods, in effect before or at any time during the covered period with respect to the applicable covered loan.
  • Covered Worker Protection Expenditure—defined as an operating or a capital expenditure to facilitate the adaptation of the business activities of an entity to comply with requirements established or guidance issued by the Department of Health and Human Services, the Centers for Disease Control, or the Occupational Safety and Health Administration, or any equivalent requirements established or guidance issued by a State or local government, during the period beginning on March 1, 2020 and ending on the date on which the national emergency declared by the President under the National Emergencies Act (50 U.S.C. 1601 et seq.) with respect to the Coronavirus Disease 2019 (COVID–19) expires related to the maintenance of standards for sanitation, social distancing, or any other worker or customer safety requirement related to COVID–19.May include—the purchase, maintenance, or renovation of assets that create or expand a drive-through window facility; an indoor, outdoor, or combined air or air pressure ventilation or filtration system; a physical barrier such as a sneeze guard; an indoor, outdoor, or combined business space; an onsite or offsite health screening capability; or other assets relating to the compliance with the requirements or guidance described above. Other kinds of personal protective equipment, as determined by the Administrator in consultation with the Secretary of Health and Human Services. Does not include residential real property or intangible property.
  • Eligible Group Insurance Costs—Description of eligible insurance costs included in payroll is updated by clarifying that group life, disability, vision, or dental insurance can be considered.

Definition of a Seasonal Employer (Retroactive for all PPP Loans):

  • Defines a seasonal employer as an eligible recipient if:
  • Operated for no more than 7 months in a year or
  • Earned no more than 1/3 of its receipts in any six months in the prior calendar year

Maximum Loan Amount Calculations:

** For existing PPP loans, the borrower may apply for a loan modification to increase their loan amount if updated rules result in a higher eligible loan amount, IF they have not already applied for forgiveness

  • Standard businesses in operation

At the election of the borrower:

The average total monthly payment for payroll costs incurred or paid during:

  1. The 1-year period before the date on which the loan is made or
  2. Calendar year 2019

Multiplied times 2.5 up to a maximum of $2MM

  • Seasonal Employers

At the election of the borrower:

The average total monthly payments for payroll costs incurred or paid during:

  • Any 12-week period between February 15, 2019 and February 15, 2020

Multiplied times 2.5 up to a maximum of $2MM

  • New Entities

The quotient obtained by dividing:

  • The sum of the total monthly payments for payroll costs incurred or paid as of the date on which the entity applies for the loans by the number of months in which those payroll costs were paid or incurred

Multiplied times 2.5 up to a maximum of $2MM

  • NAICS 72 Entities (Accommodation and Food Services)

The average total monthly payment for payroll costs incurred or paid during:

1)   The 1-year period before the date on which the loan is made or

2)   Calendar year 2019

Multiplied times 3.5 up to a maximum of $2MM

Maximum Loan Amount for Farmers and Rangers:

For farmers and ranchers who:

  • Operate as a sole proprietorship, independent contractor or as an eligible self-employed individual;
  • Report farm income or expenses on Schedule F (or any equivalent successor schedule); and
  • Were in business as of February 15, 2020.

 

  • With NO EMPLOYEES

The gross income in 2019 as reported on Schedule F (or any equivalent successor schedule) that is not more than $100,000 divided by 12 and multiplied by 2.5 (plus any EIDL made between January 31, 2020 and April 3, 2020 they want to refinance) up to a maximum of $2MM.

  • With EMPLOYEES

The sum calculated above would be added to the payroll calculation.

  • RECALCULATION – The lender may recalculate using this new formula and advance additional funds to the borrower at the borrower’s request.