On December 27, 2020, President Trump signed the Covid relief and government funding bill. The bill enacts the 2nd round of the PPP and a $600 stimulus check to Americans. As part of a $900 billion relief bill, Congress approved more than $284 billion in new PPP funding and extends the program through March 21, 2021. Once the SBA revises the program guidelines, PPP will re-open to existing and new borrowers. Its anticipated that the SBA will have the program open for PPP applications within 10 days.
The qualifying requirements are:
– Demonstrating at least a 25% reduction in gross receipts during a quarter in 2020 relative to the same quarter in 2019;
– Employing 300 or fewer employees;
– Having used or will use the full amount of their first PPP loan.
The PPP program will broaden the expenses covered with the PPP funds. These expenses include:
payroll costs, rent, utilities, mortgage interest, operational expenses, payments to suppliers, property damage.
Additionally, although not directly part of the PPP program, the relief bill designated $15 billion for the SBA to make grants to eligible live venues, performing arts organizations, museums, and similar organizations that demonstrate a 25% reduction in revenues.
As of 12/30/2020 applications are not open yet
- 2020 vs 2019 Quarterly comparison of Gross revenues (request the DF Qualification Spreadsheet);
- 2019 Tax Returns- Corporate Tax Return or Schedule C of the 2019 IRS form 1040;
- 2019 Bank Statements- February through December
- 2019 Payroll Summary- February through December
Click the links below for more information on the upcoming Paycheck Protection Program.