With the signing of the Consolidated Appropriations Act, 2021, there are new opportunities that some business owners will be able to take advantage of as applications are beginning to be accepted this week for this new round of PPP Forgivable Loan Funding.
To qualify for a second forgivable PPP Loan, you must have experienced a revenue reduction of no less than 25% for at least one fiscal quarter of 2020 as compared to 2019. For small businesses that perhaps do not utilize a digital financial tool like QuickBooks, you would need to find out from your lender what documentation would be required, such as bank statements for the comparative periods.
Your loan can be based on either your 2019 or 2020 wages. However, if you do utilize 2019 wages, you will need to be prepared to demonstrate your 2020 employee headcount and full time equivalents (FTE) calculation as this will be crucial for the calculation of the loan amount.
For most businesses, the loan will be based on 2.5 times your 2019/2020 monthly wages. For those business owners with a NACIS code that begins with 72, which includes accommodations and food services businesses, you are eligible for 3.5 times your monthly wages.
So pull your financial reports, verify that you are eligible, and get in touch with your SBA lender to get the process started to apply for your round 2 of forgivable PPP Loan Funding.
Have a great Tuesday!