GET PPP READY

Sole-Proprietors

Sole-proprietors and independent contractors and gig workers who filed a Schedule C are eligible for up to two draws of $20,833.

Key Qualification for PPP 2.0 or “Second Draw”

Businesses and Non-Profits with 300 or fewer employees can borrow up to $ 2 million provided you can demonstrate a 25% or greater decline in Gross Revenues during any one quarterly period in 2020 compared to the same quarter in 2019

PPP 1.0 Loan Still Open

If you have an existing PPP Loan, then you must have spent your PPP 1.0 money before obtaining PPP 2.0. The bank may want you to submit PPP 1.0 Loan for forgiveness before second draw – make sure you are ready per new forgiveness application form.

New PPP Applicants – “First Draw”

If you have never received a PPP Loan, then you can apply for the current PPP Loan per original rules – no more than 500 employees / up to $ 10 Million Loan Amount

 Eligibility Changes & Documentation

• 501(c)(6) [NFL, AMA, ABA, etc.] and Destination Marketing Organizations [Gov’t Tourism Bureaus] can get a PPP Loan provided that they meet certain restrictions related to lobbying activity.
• Newspapers, TV, Radio, and public broadcasters are now eligible for PPP Loans provided that they are distributing locally focused emergency content.
• Businesses before a Bankruptcy Court can potentially obtain a “first draw” PPP Loan. The PPP Loan must be elevated in relation to other outstanding claims so that the PPP loan supersedes almost every other claim. The business should not be permanently shut down. 

SOURCE: SMALL BUSINESS ADMINISTRATION