PPP Round 2 Information

I recently attended a webinar about PPP Round 2. You can download the deck here, and you can watch the replay here. (If you don’t know the Small Business Majority, they are an excellent resource to become familiar with.) You should also get to know your local Small Business Development Center (SBDC), as they can help you with the application process, at no cost.

Note: If you received a first round of PPP, your first loan does not have to be forgiven to apply for a second round, but it does have to be fully spent. 

Round 2 PPP applications open tomorrow, but only through smaller community banks. Larger banks will start in a few days, or maybe next week. (If you didn’t apply for PPP previously, a new Round 1 began yesterday.) Although the PPP isn’t technically first-come, first served, they do expect to run out of funds this time, so it’s better to apply now! My bank accepted my application already, to submit tomorrow when the SBA starts accepting. It took less than an hour for me to complete the application, because I still had all the info from the first round.

Overall, the rules have been simplified from last time. More expenses qualify to be covered, and forgiveness should be easier to predict. Expenses paid for by PPP loans WILL be tax-deductible at the Federal level, but may not be at the State level, so check with your CPA. Independent contractors and non-profits are eligible for PPP loans.

You are required to select a “reference quarter” from 2019 to compare to a matching quarter from 2020, to show a 25% drop in revenue. My bank asked for my income statements (P&L) to verify the drop. If you are another type of business, some other form of verification may be needed. The webinar said you could also select the entire year, but that option was not on the PPP application I submitted.

The PPP applications are here.

You will want form 2843-SD for a Second Draw or 2843 for a First Draw. The site also has some reference materials. There is a simplified forgiveness process if you are requesting $150,000 or less.

A new EIDL loan round also starts next week, but it will not be available if you previously took EIDL.

Of particular interest for some of you, is that if you got less than $10,000 from the first EIDL grant last year, you can now reapply to receive the full $10,000, probably sometime next week. Also, EIDL is no longer deducted from PPP forgiveness.

If you are interested in Save Our Stages, the shuttered venues grant program, the Small Business Majority will be holding a webinar for that soon, so check their site and sign up when it’s available!

The SBA is also having a webinar on Thursday at noon PST.

Please feel free to forward this info to anyone you think can use it.