Posted On March 10, 2021
Through a local/regional/national SBA lender. Not all banks will be participating, so it is encouraged to check if your local bank will be participating.
Yes, both first-time and second-time borrowers can apply (if eligible per the guidelines).
Yes. Your first PPP loan does not have to be forgiven for you to apply for a PPP2 loan.
No. Businesses must have been operational on or before February 15, 2020.
Yes, it does.
In order to qualify for a PPP2 loan a business has to show a 25% reduction or more in gross receipts for any quarter in 2020 year-over-year. Does that mean if Q1, for example, shows a 28% reduction but the rest of the quarters shows a 20% reduction, we will still qualify?
Correct, you will still qualify for the PPP2 loan.
No. It is expected that only consecutive three month quarters in accordance with your quarterly 941 form will be considered.
2.5 times the Average Monthly Payroll (AMP). However, if the business is classified under 72 NAICs (hotels and restaurants), then the owner can get up to 3.5 times their AMP (subject to a $2 million maximum).
How do we prove that we used the full amount of the first PPP loan in order to apply for PPP2? What documentation would we need to provide?
This is a question for your bank.
If we already got the first PPP loan in April 2020, do we need to submit all the papers that are requested again?
This is a question for your bank. Each bank process PPP loans differently.
Yes. The EIDL is handled through the SBA.gov website. The PPP loans are handled through your local banks.
After Wednesday, January 13th
Awaiting SBA guidance.
IF the businesses are filed on separate tex returns, yes.
EIDL loans are not forgivable, however the EIDL advance is forgivable.
Awaiting SBA directive.
We received the EIDL because the PPP was not available. Is there any support that will eliminate part of or all of this debt, similar to the PPP?
If we received an EIDL loan during the first round, can we apply for it again during the second round?
Save Our Stages (SOS): Shuttered Venue Operator Grant
NEW: Established by the recent COVID relief legislation, this program will provide relief in the form of grants to live venue operators or promoters who have been significantly adversely affected by the economic effects of the COVID-19 pandemic. The SBA is working to establish and launch this program in the coming days and weeks.
Businesses and entities must have been in operation on February 15, 2020 and demonstrate at least a 25% reduction in gross revenues in the first, second, third, or fourth quarters in 2020 as compared to the same quarter in 2019. Eligible entities include:
- Live venue operators or promoters
- Theatrical producers
- Live performing arts organization operators
- Museum operators
- Motion picture theatre operators
- Talent representatives
The Small Business Administration may award an initial grant of up to $10 million dollars and, if funding is available, a supplemental grant that is equal to 50% of the initial grant. However, the total amount received by an entity for an initial and supplemental grant may not exceed $10 million.
Grant awards are calculated based on which is the lesser amount of:
I. The amount equal to 45% of the gross earned revenue during 2019, if in operation on January 1, 2019 (for entities that began operations after January 1, 2019, this amount would be equal to 6x the average monthly gross earned revenue for each full month during 2019); and
Grants will be awarded based on the amount of financial loss that your operation has experienced:
- In the initial 14-day period of implementation, the Small Business Administration will award grants to eligible entities that have experienced a 90% or greater revenue loss between April 1, 2020 and Dec. 31, 2020, as compared to the same period in 2019.
- In the next 14-day period after the first 14-day period of implementation, the Small Business Administration will award grants to eligible entities that have experienced a 70% or greater revenue loss between April 1, 2020 and Dec. 31, 2020, as compared to the same period in 2019.
- After these two periods, grants will be awarded to all other eligible entities.
My eligible entity employs less than 50 people full-time. What protections are in place for small operators like me?
In the initial 60 days of implementation, the Small Business Administration will set aside $2 billion nationwide for small entities that employ less than 50 full-time equivalent (FTE) employees. An employee working 30 hours or more per week is one FTE, and an employee working between 10 – 30 hours per week is one-half FTE. After the 60 day period, any remaining funds will be made available to other eligible entities.
Eligible uses include:
- Payroll costs
- Rent or mortgage
- Payments made to independent contractors, as reported on Form-1099 MISC
Ordinary business expenses such as maintenance, licensing fees, taxes, operating leases, insurance policies, advertising, and production transportation.
- Worker protection items, e.g. personal protective equipment
Check with your bank.
Not under the new provision.
Is there anything available for non-profits that are closed but still have routine expenses (no salaries) without the benefit of donations or retail sales?
Yes, both PPP and EIDL will be open to non-profits.
You can apply for PPP2 at your participating local bank. You will need to apply for EIDL on the SBA.gov website.
We have yet to file taxes for 2019. What form will we have to fill out in order to be approved for the EIDL?
PPP loans are distributed through your participating local bank. Banks have different requirements. Please check with your bank.
Yes. We are waiting for official information from the Michigan Economic Development Corporation (MEDC).
We are participating in the WorkShare program and have reduced our work week by 20%. Are we eligible to apply for PPP2/EIDL?
The workforce must remain at or above 75%, or less than a 25% reduction.