The Payroll Protection Program2 is the second round of small business loans through the SBA for the purpose of helping small business owners maintain their workforce.
You can apply for the loan through a qualified lender. You do not have to have an existing relationship with the bank, nor do you have to use the same bank that you use on round 1 of the PPP Loan.
You must have received Round 1 of the PPP Loans before you can get the PPP2 loan. If you didn’t qualify for PPP1 at the time due to no payroll in 2019, but you had payroll in 2020, you can now qualify for the PPP1 Loan
The amount of the loan is 2.5 times your average monthly payroll.
You can use either the 2019 or 2020 Total Payroll
You should include Gross Wages, Employee Benefits (Health Insurance, Group Term Life Ins etc), and SUTA
In order to qualify you must show that your gross receipts have decreased 25% in a calendar quarter over the same quarter in 2019.
The decrease does not need to be due to Covid, so if your income has decreased due to a slow storm season you may qualify!
Example:
2nd Quarter 2020 (April-June) Your Gross Receipts were $300,000
2nd Quarter 2019 (April-June) Your Gross Receipts were $400,000
The decrease is 25% so you would qualify
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