PPP Round 2

The second round of the Paycheck Protection Program is now in full swing with most major banks now accepting applications. Some businesses have already been funded through early access programs with smaller businesses, smaller banks, and underserved community businesses. In an effort to expedite the process Hardy Capital has also partnered with a CPA firm to process the loans much quicker this time around.  To be eligible for the second round of PPP, apply, and begin gathering your documents please see the guide below.

Eligibility:

·       Business must not employ more than 300 people

·       Have used or will fully use their first PPP loan for authorized uses

·       Show at least a 25% drop in gross receipts in the first, second or third quarters of this year compared to the same quarter in 2019.

Loan Calculation:

2.5x average monthly payroll expenses with restaurants and lodging businesses eligible to apply for loans equal to 3.5x monthly payrolls.

Eligible PPP Expenses:

• Payroll costs, including paid sick leave and group insurance benefits provided by the employer.

• Operating costs, including payments for mortgage, rent, utilities, software, and human resources and accounting needs.

• Property damage sustained during protests and disturbances in 2020, unless covered by insurance.

• Payments to a supplier covering contracts and purchase orders in effect before taking out the second-draw loan.

• Personal protective equipment and modification made to meet health and safety requirements.

At least 60% of the total loan amount must be used on payroll expenses to qualify for full loan forgiveness.

Documents and Information Needed:

·       Previous Loan number and amount borrowed, and monthly payroll

·       2019 Form 990 or 1040

·       Bank Statement from January 2020

·       2019 and 2020 quarterly revenue

·       Employee count in 2019 and 2020

·       Business Year Established and Driver’s License

More information can be found at the SBA website located here.

If this is something you or someone you know would like assistance with, please reach out to contct@hardycapital.com