The
2nd round of funding for PPP Loans will be available this week.
Small
businesses who did not receive a PPP loan on the first go around can
begin to apply January 11, 2021-apply with your local bank.
Small
businesses who did receive a PPP loan may qualify for a second loan and can
begin to apply January 13, 2021-apply with your local bank.
In
order to qualify for the Second PPP Loan, your business must have suffered a 25
percent (or bigger) decline in revenue in a single quarter in 2020 compared to
2019 (or in total for 2020 compared to 2019). Other terms and conditions do
apply, but this is the condensed explanation.
The definition of revenue is as follows: “All revenue in whatever form received or
accrued (in accordance with the entity’s accounting method) from whatever
source, including from the sales of products or services, interest, dividends,
rents, royalties, fees, or commissions, reduced by returns and allowances.”
The
definition further explains what is not revenue: “Gross receipts do not include
the following: taxes collected for and remitted to a taxing authority if
included in gross or total income (such as sales or other taxes collected from
customers and excluding taxes levied on the concern or its employees); proceeds
from transactions between a concern and its domestic or foreign affiliates; and
amounts collected for another by a travel agent, real estate agent, advertising
agent, conference management service provider, freight forwarder or customs
broker. All other items, such as subcontractor costs, reimbursements for
purchases a contractor makes at a customer’s request, investment income, and
employee-based costs such as payroll taxes, may not be excluded from gross
receipts.”
We
all know from last year the bank lines fill up for the PPP funds, so call your
banker and get in line quickly.
