PPP II Qualifications & Deadlines
To our Clients and Friends,
We wanted to give you a brief reminder that as of Tuesday, January 19, 2021, lenders should be opening up their portals for new PPP loan applications. There is $285 billion of funding from the federal government currently available to fund those who a) did not receive PPP loans last summer or those who b) may still be struggling from the COVID-19 pandemic and qualify for the so-called “PPP II Program”.
The deadline for both programs is March 31, 2020.
Borrowers who qualify for PPP II are generally eligible for the same amount as they would have received under the original CARES Act PPP program (2.5 times eligible monthly payroll expenses). Those in the hospitality industry (i.e. restaurants, hotels, etc.) can receive 3.5 times eligible monthly payroll expenses.
Qualifications for PPP II include the following:
- Entities must have been in business on February 15, 2020,
- Must have less than 300 employees, and
- Most importantly, must have a 25% or greater decline in “gross revenues” in any quarter when compared to the same quarter in the prior year.
- The “25% decline in gross revenues” test seems to be where most people are struggling. We are available to help you work through these calculations, if necessary.
As we learned in the first round of PPP funding, “time is of the essence” and the sooner you apply, the better.
Please let us know if there’s anything that we can do to help you work through the new PPP process.