Key Takeaways

• Payroll Protection Program (PPP) Loans are available once again for both first-time and second-draw applicants.
• First time applicants must have 500 or fewer employees and been in business before February 15, 2020.
• Second-draw applicants can apply for a second loan that can be forgiven. Applicants must have 300 or fewer employees, a reduction in gross receipts of 25% for any quarter of 2020 compared to the same quarter of 2019, used all of the funds from the first loan, and been in business before February 15, 2020.
• Clients who wish to determine their eligibility for a first-time or second-draw PPP loan must contact our office to request our help.

Details

Applications for first and second PPP loans will be accepted by participating banks through March 31, 2021 or until funds run out. First-time applicants do not have to meet any requirements related to their gross receipts. Applicants for a second-draw must have experienced a decrease in gross receipts of 25% in quarters 1,2, 3, or 4 of 2020 compared to the same quarter of 2019. Special rules apply for businesses that began operations in 2019.

If you wish to apply as a first-time or second-draw applicant, contact our office as soon as possible if you need our assistance. We estimate that the majority of our business clients have not experienced a 25% decline in gross receipts in any quarter of 2020 compared to 2019; therefore, we will not automatically make the calculations for all of our accounting clients. If you would be a first-time applicant or believe you meet the 25% decrease in gross receipts and wish to apply for a second draw you must contact our office if you need our assistance.

What is a "quarter" for application purposes?

Some clients have asked if a quarter is defined as any consecutive three-month period or if it must be a calendar quarter (e.g. January - March is quarter 1, April - June is quarter 2, etc.). Based on the rules published so far and a reading of the application it seems that second-draw applicants are limited to calendar quarters. We do not believe that you can use a custom consecutive three-month period to meet the 25% decrease in gross receipts requirement.