What you can do now to prepare for round two PPP loan applications

List of items to consider:

First, figure out if you are eligible to apply:

  • Run quarterly income statements for 2019 and 2020. Companies demonstrating a 25% or more reduction in gross receipts in any quarter in 2020 as compared to the same quarter in 2019 are eligible to apply. Special rules apply to new businesses that started in 2019 or 2020.

If you are eligible to apply, then work on gathering the following items:

  • Head count numbers for 2019 and 2020. Companies with 300 or fewer employees are eligible to apply. For restaurants and other companies with an NAICS code starting with 72, the 300-employee limit is for each location.
  • 2019 and 2020 payroll reports.
  • 2019 and 2020 forms 941, 940 and State Unemployment tax returns.
  • 2019 and 2020 health benefit expenses (health insurance, group life and disability, and vision and dental).
  • 2019 and 2020 employer retirement plan contributions.
  • Watch for emails from us and your local banks regarding the new process surrounding round two of the PPP.

For Schedule C Filers

For Schedule C filers (i.e. self-employed businesses) be prepared with a balance sheet and income statement (or financial records) that can be used to generate your Schedule C – likely much earlier than you typically would have this done. Lenders required a Schedule C for prior PPP loans.

For Schedule F Filers

There is a special provision for farmers and ranchers who file a Schedule F, they can calculate their eligibility using 2.5 times their monthly 2019 gross income with a monthly maximum gross income of $100,000. Therefore, the maximum loan amount in this case would be $20,833 ($100,000 x 2.5 / 12).  Although it appears only the 2019 Schedule F will be required, we encourage you to get your 2020 farm income/expenses finalized in case there are further requirements.