![]() ![]() If you don’t have accurate quarterly revenue data demonstrating a 25% reduction in revenue for one quarter in 2020 compared to 2019, you can use your 2020 tax return to demonstrate the 25% reduction, assuming you reported a 25% or greater loss for 2020. What if I don’t have quarterly revenue data for my small business? Can I still apply for a second draw PPP loan? A borrower must calculate this revenue reduction by comparing the borrower’s quarterly gross receipts for one quarter in 2020 with the borrower’s gross receipts for the corresponding quarter of 2019.įor example, a borrower with gross receipts of $50,000 in the second quarter of 2019 and gross receipts of $30,000 in the second quarter of 2020 has experienced a revenue reduction of 40 percent between the quarters, and is therefore eligible for a Second Draw PPP loan (assuming all other eligibility criteria are met). The Economic Aid Act provides that, to be eligible for a Second Draw PPP Loan, the borrower must have experienced a revenue reduction of 25% or greater in 2020 relative to 2019. How do I demonstrate a 25% reduction in revenue to qualify for a second draw PPP loan? There’s a brand new form for people applying for a second draw loan. ![]() This clarification will help ensure program integrity by preventing borrowers from receiving a second PPP Loan if they have not complied with PPP loan program requirements You have spent the full amount of your first PPP Loan on eligible expenses under the PPP rules.Your business has received a “first draw” PPP loan and has used, or will use, the full amount of the initial PPP funding on or before the expected date on which the Second Draw PPP Loan is disbursed to you, and.Your business experienced a 25% revenue reduction in 2020 relative to 2019 (described further below), and. ![]()
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