PPP Round 2. I’ll update this when I do. This is relevant for people trying to get two back-to-back 2021 PPP loans using the minimum 8 week coverage period since coverage periods can’t overlap. I was originally going to take round 1 PPP and spread it over 24 weeks to fill in the pay gap of EDD ($450) compared to my weekly income for 2019 ($750); and then take Round 2 as a loan. • Most businesses: As in the first round of PPP, you can get up to your average monthly payroll in 2019 times 2.5. Paycheck Protection Program Second Draw Loans. PPP Round 2 Eligibility. With this latest round of PPP funding, businesses — even those that received a PPP loan during the first funding period — will have a second chance to take advantage of the popular relief package. It's going to be tricky verifying loss of payroll - many small business don't have a full time/sophisticated accountant. Summary. If you were to apply somewhere else you would then go to the back of the line. So, now I can't register for my sba CAWEB account, apply for forgiveness, or get a 2nd draw. PPP Round 2 The second round of Paycheck Protection Program (PPP) funding is ready to be released. The Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) programs are expected to return starting the week of January 11, 2021. Small businesses and bankers on your marks, get ready -- and don't go just yet. How would a sole prop no employee but self qualify? Eligibility. Been 2 weeks. This package allots an additional $284 billion for a second round of PPP funding, allowing business owners to receive a first or second loan. Frequently Asked Questions for Lenders and Borrowers participating in the Paycheck Protection Program (PPP) FINGERS CROSSED. Qualified borrowers can apply for 2.5 times their average payroll cost for 12 months. I never took a copy or jotted down my sba loan number. I just got the”Further Research Required” status update. First-time borrowers can apply for loans up to $10 million. They were so communicative and made it really simple. This section creates a second loan from the Paycheck Protection Program for eligible businesses and businesses qualifying originally under this eligibility. I'm wondering how will they verify 50% revenue loss? Will they base off of taxes. I’m super frustrated! For round 2 of the PPP funding, both first-time and second-time qualified borrowers are eligible to apply. To apply, a business must have used up their first PPP loan, have no more than 300 employees, and show a 25% reduction in revenue from 2019 to 2020. Driver's License / Photo ID; Voided Check; Form 1040 Schedule C If line 31 is $0 or negative, you are ineligible for a PPP loan. Who Is Eligible For PPP Round 2. I have no idea. The first round of PPP was generally open to small businesses, nonprofits and contractors with a maximum of 500 employees. Eligible entities must be businesses, certain non-profit entities, veterans’ organizations,tribal businesses, self-employed individuals, sole proprietors, independent contractors, orsmall agricultural co-operatives. In order to receive a Paycheck Protection Program loan under this section, eligible entities must: meet the SBA’s revenue size standard, if applicable; employ not more than 300 or fewer employees; and. PPP round 2 is more targeted. Hello Reddit family, I had my first draw ppp loan through smartbiz/customers bank, and wasn't aware no copy would be sent to me. Still stuck waiting on the SBA to finish their required research. By Ted Andersen , San Francisco Business Times, 5/4/20 . Honestly, I wish I had a message like that. In general, borrowers may receive a loan amount of to 2.5 times average total monthly payroll costs in the one year prior to the loan, up to $2 million. My problem is that I am only 50% down vs 2019 Q4 if I use months June July and August of 2020. Section 106. Press J to jump to the feed. Answering my Own Question - this is from Senator Rubio's site: Loan terms. This amount is capped at $100,000 on an annualized basis for each employee. 2. But if the round 2 PPP gets funded before 8 weeks, and PPP 1 needs to be used up before receiving PPP Round 2, then I need to re-assess the situation. Some accounts are randomly chosen to seek additional documents. Is this part of the current bill that is being negotiated or is this something that the Treasury Department decides when to open applications for the second round of PPP loans? Startups that received PPP loans last year included Karma Automotive, Turo, and Mixpanel, according to CNBC. The American Institute of CPAs sent a letter to the Small Business Administration (SBA) on February 3, 2021 urging it to correct the processing errors and delays that small businesses are experiencing with the current Paycheck Protection Program (PPP) loan application system. Ineligible entities include publicly-traded businesses, entities listed in 13 C.F.R. I have seen this in some threads so I’m trying to find them again now. I imagine all the love from Reddit is making them a bit busy now, but I really liked the way they worked and they never seemed bogged down or stressed. 1. How and When to Apply . The new round of PPP loans offer a “second draw” for harder-hit businesses that received PPP funding in 2020. Applications for this round of funding started the week of January 11, 2021, and will continue through March 31, 2021. It will be life saver for small companies for sure. Press question mark to learn the rest of the keyboard shortcuts. It looks to be issues tied to your first loan. Will I really not qualify because I have to group the 3 months by quarter (January - March, April - June)?? The new round of PPP contains many similarities to the first round of the PPP but also has several important differences. For a Second Draw PPP Loan, you may borrower up to 2.5 times your average monthly payroll, excluding any individual compensation or self-employment income above $100,000, but the maximum loan amount is capped at $2 million per borrower. The U.S. Small Business Administration (SBA), in consultation with the Treasury Department, announced Friday (January 10, 2021) that the Paycheck Protection Program (PPP-2) will re-open the week of January 11 for new borrowers and certain existing PPP borrowers. A change in scenery would be welcome. Second draw PPP loans have a $2 million ceiling (note that first draw PPP loans still have a $10 million dollar ceiling). Lender keeps telling me that as long as I'm not declined I'm in a good spot. PPP loans for the self-employed and contractors can be used to give yourself a salary (wages, commissions, tips). Provides separate eligibility requirements — but only for first-time applicants that covers 2/15/2020 as of. 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