9/18/2023 0 Comments Monthly gross receipts example sba![]() ![]() A business concern or entity primarily engaged in political activities or lobbying activities.The Economic Aid Act would also prohibit the following entities from receiving a Second Draw PPP Loan: What entities are not eligible for a Second Draw PPP Loan?Īn entity that is ineligible to receive a First Draw PPP Loan would also be ineligible for a Second Draw PPP Loan. How is “gross receipts” defined for purposes of the Second Draw PPP Loan?įor purposes of Second Draw PPP Loans, the term, “gross receipts” is generally defined by the SBA as “all revenue in whatever form received or accrued (in accordance with the entity’s accounting method) from whatever source, including from the sales of products or services, interest, dividends, rents, royalties, fees or commissions, reduced by returns and allowances.” Any amount received by the borrower from the forgiveness of the First Draw PPP Loan is excluded from the calculation of “gross receipts”. In addition to the foregoing, the borrower must comply with all other existing requirements under the PPP, including without limitation, providing a certification in good faith that (a) the uncertainty of current economic conditions makes necessary the loan request to support the ongoing operations of the borrower, (b) the proceeds of the loan will be used for purposes permitted under the program, and (c) the borrower has not received another Second Draw PPP Loan. It experienced a reduction in gross receipts of 25% or greater in any quarter of 2020 compared to the corresponding quarter in 2019.It employs not more than 300 employees (or in the case of businesses with a North American Industry Classification System (“ NAICS”) code beginning with 72 or eligible news organizations, it has not more than 300 employees per physical location (described in further detail below)), subject to the SBA’s affiliation rules and.It received a First Draw PPP Loan and it has used, or will use, the full amount of the First Draw PPP Loan (including the amount of any increase received) on eligible expenses on or before the date on which the Second Draw PPP Loan is disbursed.Who is eligible for a Second Draw PPP Loan?Ī borrower is eligible for a Second Draw PPP Loan only if the borrower meets the following eligibility requirements: Second Draw PPP Loans must be made by March 31, 2021. When are Second Draw PPP Loans available?Īs of the date of this FAQ, all eligible PPP lenders are now able to submit Second Draw PPP Loan applications. ![]() The updated calculations for these specific categories are described in greater detail below. Borrowers that are eligible for an increased First Draw PPP Loan principal amount based on these changes in the Economic Aid Act are permitted to request an increase from their lender so long as such borrower has not yet already received forgiveness from the SBA for its First Draw PPP Loan. In addition to authorizing Second Draw PPP Loans, the Economic Aid Act modified the calculation for determining the principal amount of loans for Seasonal Employers, New Entities and Farmers and Ranchers. PPP borrowers are encouraged to confirm whether they are entitled to an increased principal amount under their First Draw PPP Loan. What to do before applying for a Second Draw PPP Loan? If you have any questions regarding the PPP or any other SBA loan programs, please contact our Banking and Finance team. The below is intended to be a general summary of the provisions. The below addresses certain provisions of the Economic Aid Act governing the issuance of Second Draw PPP Loans. The Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the “ Economic Aid Act”) permits certain eligible Paycheck Protection Program (“ PPP”) borrowers that previously received a PPP Loan (a “ First Draw PPP Loan”) to apply for an additional loan under the PPP (a “ Second Draw PPP Loan”).
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |