![]() All the guidance from the SBA for the first round of PPP loans will apply to these second-draw loans.Forgiveness amounts will be either the lessor of the covered expenses or the payroll costs divided by.The maximum available loan is now $2 million.Alas, this is not the relief most restaurants are looking for. This could give restaurants and other hospitality businesses one more month of payroll or other costs to keep them going. Accommodations and food service companies can use 3.5 times their average monthly payroll. ![]() This should be an easy calculation to determine, if that is the case, for most businesses. Since businesses may use the average monthly billing for the whole year of 2019, the 2.5 times average monthly payroll may be more than asked for in a previous application. This might be a different number than previously used which was for a shorter average monthly period.Have received and used the full amount of the first PPP loan.Įligible businesses can apply for a loan that equals 2.5 times their average monthly payroll for the entire year.Applications that are submitted after Janumay qualify with a 25 percent reduction in gross receipts in the fourth quarter of 2020 compared to the fourth quarter in 2019. Have no more than 300 employees with no less than 25 percent reduction in gross receipts in the first, second, or third quarter of 2020 compared to the same quarter in 2019.This means you must have had at least a 25 percent drop in revenue from, for example, April-June (Q2) 2020 when compared to April-June (Q2) of 2019. In this next round of funding, the short story is that businesses must have at least a 25 percent drop in revenue in any quarter of 2020, compared to 2019, to be eligible. The PPP has been given new life, meaning certain businesses can apply for a second loan, though the terms have changed. What retailers need to know about the second round of PPP loans, how to apply for new employee tax credits and other ways to optimize their personal taxes for 2020 and moving into 2021.
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