Many of you have inquired about the PPP2 and the application process for such. Just now, the SBA released the PPP2 application. Please click on the link below:
Please keep in mind, in order to qualify for this next round of funding (PPP2) you must be able to prove your collections were down by 25% or more for any calendar quarter. You must meet one of the following:
- For all entities other than those satisfying the conditions set forth below, Applicants must demonstrate that gross receipts in any quarter of 2020 were at least 25% lower than the same quarter of 2019. Alternatively, Applicants may compare annual gross receipts in 2020 with annual gross receipts in 2019; Applicants choosing to use annual gross receipts must enter “Annual” in the 2020 Quarter and Reference Quarter fields and, as required documentation, must submit copies of annual tax forms substantiating the annual gross receipts reduction.
- For entities not in business during the first and second quarters of 2019 but in operation during the third and fourth quarters of 2019, Applicants must demonstrate that gross receipts in any quarter of 2020 were at least 25% lower than either the third or fourth quarters of 2019.
- For entities not in business during the first, second, and third quarters of 2019 but in operation during the fourth quarter of 2019, Applicants must demonstrate that gross receipts in any quarter of 2020 were at least 25% lower than the fourth quarter of 2019.
- For entities not in business during 2019 but in operation on February 15, 2020, Applicants must demonstrate that gross receipts in the second, third, or fourth quarter of 2020 were at least 25% lower than the first quarter of 2020.
Next week, the week of January 11th, the Banks will be opening their portals, so you will be able to apply for PPP2. It is my recommendation, you stay with the Bank that satisfied your PPP1 Loan, for they already have your financial information. If you need a referral for another financial institution, just e mail me.
You must apply for PPP2 by March 31, 2021. I would not wait, if you qualify, for these funds ($284B) are available on a first come , first serve basis!
If you need any financial documents to support your PPP2 loan request (Tax Returns, 941’s 940’s, State Unemployment Forms), please reach out to your Schiff Team Member
Finally, and as a reminder, if you qualify for the 50% reduction, that we spoke about earlier this week, please contact us, so we can help you with the strategy surrounding the maximization of the Employer Retention Credit (ERC). Please do not file for Forgiveness of PPP1, until we have chatted.