New Paycheck Protection Program (PPP) Loans: How to Qualify and Apply, The 5 Best Banks for Small Business Loans in 2020, businesses normally not eligible for SBA loans, Small Business Checking by Bank of America, 328.103(a) of title 44, Code 16 of Federal Regulations, Community Development Institutions and Minority Development Institutions, maximum loan amount based on business type, Here is the guidance the SBA published in the Procedural Notice, Self-Employed: How To Apply For A Payroll Protection Program PPP Loan, Nav is matching borrowers to lender starting today, Here’s the link to sign up for a free Nav account, previous guidance from the SBA for the self-employed, first PPP loan using the same terms as the original CARES Act. I received a PPP loan in May, 2020. If you are applying for a first- or second-draw PPP loan, you may choose a covered period that is anywhere from eight to 24 weeks after receiving the loan. We have an extreme high turn over, how do they count amount of employees? Will I have to reapply or will they fund the original approved loan? I haven’t gotten to that information yet Roger. 2. Salary, wages, commissions or similar compensation. Do you mean an SBA 504 loan? It seems to me they are different calculations. 2. I had this same question, did you ever get it answered? We got our previous EIDL and PPP in April through NAV Notwithstanding the repeal of the EIDL Advance reduction, and the January 8, 2021 advisory from the SBA, our lender is continuing to require that our company make each monthly payment. Can I get this loan? Nav is matching borrowers to lender starting today. Independent Contractor that files schedule C. Was in business all of 2019, net income of $9,200. Thanks for your time and effort. My business is a relatively simple one and I’ve never been required to prepare P&L statements or anything more complex than a Schedule C. Obviously, I don’t have a Schedule C for 2020 yet, and my 2019 Schedule C shows net profit, not gross. If you do not qualify for PPP, you have other options to access capital. Your business must have been in operation as of February 15, 2020 in order to apply for a PPP loan. (And there won’t be until the President signs it and it becomes law.). I see that I can apply this time for the advance , however looks like requirements changed as they are looking at areas with low income neighborhoods. ‘‘(B) ending on a date selected by the eligible recipient Or is it still based on 2019 information? Please help us keep our site clean and protect yourself. If not you may be able to try for an EIDL loan or the new EIDL grants. Is there anything that I can put in front of the lender that states what should be happening? The new legislation expands expenses that are eligible for forgiveness and makes applying for forgiveness even easier. Hello, Thank you I can imagine.. You can learn more about the options here. c. Not that I’m aware of. Is there another rule that applies to someone in this situation? The guidance that came out today did not expand on that so unfortunately I don’t have more information at this point. Andrew if you apply through a Nav lending partner our customer service team will do their best to answer questions about the application. You state “Reminder the first quarter runs January 1 – March 31, the second quarter runs from April 1 – June 30, the third quarter runs from July 1- Sept 30 and the fourth quarter runs from October 1 – December 31st.”. Hello – We opened our business on Nov 1, 2019. Please advise. Apologies Demitria – I’m getting inundated with questions and I’m still trying to understand the legislation. Is it an option to demonstrate the loss of income from 2019 to 2020 instead for first time PPP application? I provide tax services. Are there any lenders that don’t do strict credit checks. We will continue to update this list as more information on lenders becomes available. Hey! Taking away all our independence. How would I handle an application for PPP for the rent we lost in the 5 and 1/2 months we were forced to be closed and the lost gifting to my kids for same amount of time. They may use an online application form. Additionally, if you are worried that the amount you should take should be lower this time in order to get full forgiveness, you can always take less than the maximum loan that you may be eligible for. By then, I could have a 2020 Schedule C. Marlo – That’s a great question and we don’t know yet how Schedule C businesses will be required to demonstrate the 25% reduction in revenues. Replies to my comments My fear is our grand daughter, sisters, mom, grandmother, and aunts will suffer the most taking away our ability to stay in in the world as strong healthy women . with respect to the Coronavirus Disease 2019 (COVID–19) expires related to the maintenance of standards for sanitation, social distancing, or any other worker or customer safety requirement related to COVID–19; may include the purchase, maintenance, or renovation of assets that create or expand. I if I use 3rd or 4th quarter of 2019 for my comparison, and use the same quarter in 2020. You may also apply for PPP – either a first-time loan if you never got one or a second draw loan if you didn’t. Since it appears you’re applying for a second-draw loan application, you’ll want to take a look at our specific guide for it, including a section on how to calculate the 25% revenue reduction and the documents you can use to certify it: https://gusto.com/blog/business-finance/second-draw-ppp-application-process#Filling_in_the_section_on_the_25_percent_revenue_reduction, In it, we note: “Any business that did not operate in 2019, but was in business by February 15, 2020 must demonstrate that gross receipts in one of these: Q2, Q3, or Q4 were at least 25 percent less than in Q1.”. If you believe you qualify, then you can apply. I already paid back my first ppp because my eidl grant advance was more than My entire ppp loan amount. do we have to submit all paperwork before applying for the PPP2? Anyway I could “cherry-pick” 1 Feb – 15 March as 6 weeks of non COVID sales? Businesses that were not operating within the first two quarters of 2019, but were operating during Q3 and Q4 of 2019 may choose any quarter in 2020 and show that gross receipts of that quarter are at least 25 percent less than either the third or fourth quarters of 2019. Unfortunately that’s my understanding but I’d encourage you to read the guidance to make sure you are properly calculating gross receipts.