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WELCOME to the Adirondack Trust Company
PPP Portal Page

As stated in our last email, we will be utilizing this page to keep you up-to-date on PPP-related issues as they unfold. This will also be the site from which access to the portal will be granted when it becomes available.

Here is today’s update:

June 25, 2021

Forgiveness Portal Update

ATC’s Forgiveness Portal will be unavailable from 10 p.m. on Friday, June 25, to 10 p.m. on Sunday, June 27, as our software company, Abrigo Inc., will be upgrading the system. If you try to access the portal during the downtime, you will see a message that the system is down and the Forgiveness Application function is unavailable.

We apologize for the inconvenience. You will be able to access the portal before and after this time period.

Please reach out to your bank representative or call us at (518) 584-5844 if you have any questions.


January 21, 2021

Required Documentation:

In order to assist with completing the application, the following information is provided to give general examples of what documents are required for submission.

Additional details are available on the SBA website at www.sba.gov/ppp.

 

Qualifying Payroll Documentation

  • 1040 Schedule C or Schedule F
  • 1065 K-1 (or whole tax return)
  • Supporting documentation for Employer paid insurance
  • Supporting documentation for Employer paid retirement
  • If just using 941s for monthly payroll calculation, borrower can make that comment.

 

Payroll Documentation for 2/15/20 – evidence borrower was in business as of 2/15/20

  • Payroll report for the period (verifies employees)
  • If no employees – invoice, bank statement, or book of record showing in operation
  • 1Q 2020 941 or NYS 45

 

Quarterly Payroll Tax Reporting

  • 941s
  • NYS 45s
  • Third-party payroll-service report, detailing employees and withholding.

 

Average Monthly Payroll Calculation

  • Upload the actual math used to calculate monthly payroll/loan amount. We can process applications much more quickly with your assistance in this area.

 

Supporting Revenue Reduction

  • Quarterly financial statements for 2020 quarter and comparable 2019 quarter used to demonstrate 25% revenue reduction.
  • If internal interim reporting is not available, provide gross receipts and total them for the relevant quarter, plus provide bank statements for the quarters showing deposits that represent the revenue.
  • Can use annual gross receipts for 2019 and 2020, but are required to have 2019 and 2020 tax return. If 2020 not yet filed, fill out the return forms and compute gross receipts.

 

January 18, 2021

Frequently Asked Questions:

 

Q: How do I calculate the amount I can borrow?

The following methodology, which is one of the methodologies authorized by the Act, will be most useful for many applicants.

  1.  Aggregate payroll costs (defined in detail below in subsections 4.g. and 4.h.) from 2019 or 2020 for employees whose principal place of residence is the United States.
  2.  Subtract any compensation paid to an employee in excess of $100,000 on an annualized basis, as prorated for the period during which the payments are made or the obligation to make the payments is incurred.
  3.  Calculate average monthly payroll costs (divide the amount from Step 2 by 12).
  4.  Multiply the average monthly payroll costs from Step 3 by 2.5.
  5.  Add the outstanding amount of an Economic Injury Disaster Loan (EIDL) made between January 31, 2020 and April 3, 2020 that you seek to refinance.  Do not include the amount of any “advance” under an EIDL COVID-19 loan (because it does not have to be repaid).
    Note: You must provide your Form 941 (or other tax forms containing similar information) and state quarterly wage unemployment insurance tax reporting forms from each quarter in 2019 or 2020 (whichever you used to calculate loan amount), or equivalent payroll processor records, along with evidence of any retirement and health insurance contributions. A payroll statement or similar documentation from the pay period that covered February 15, 2020 must be provided to establish you were in operation on February 15, 2020.

Q: I have income from self-employment and file a Form 1040, Schedule C, how do I calculate the maximum amount I can borrow and what documentation is required?

How you calculate your maximum loan amount depends upon whether or not you employ other individuals.  If you have no employees, the following methodology should be used to calculate your maximum loan amount:

  1.  Find your 2019 or 2020 IRS Form 1040 Schedule C line 31 net profit amount (if you are using 2020 to calculate payroll costs and have not yet filed a 2020 return, fill it out and compute the value).  If this amount is over $100,000, reduce it to $100,000.  If this amount is zero or less, you are not eligible for a PPP loan.
  2.  Calculate the average monthly net profit amount (divide the amount from Step 1 by 12).
  3.  Multiply the average monthly net profit amount from Step 2 by 2.5.
  4.  Add the outstanding amount of any Economic Injury Disaster Loan (EIDL) made between January 31, 2020 and April 3, 2020 that you seek to refinance. Do not include the amount of any advance under an EIDL COVID-19 loan (because it does not have to be repaid).
    Note:  You must provide the 2019 or 2020 (whichever you used to calculate loan amount) Form 1040 Schedule C with your PPP loan application to substantiate the applied-for PPP loan amount and a 2019 or 2020 (whichever you used to calculate loan amount) IRS Form 1099-MISC detailing nonemployee compensation received (box 7), invoice, bank statement, or book of record that establishes you are self-employed.  If using 2020 to calculate loan amount, this is required regardless of whether you have filed a 2020 tax return with the IRS.  You must provide a 2020 invoice, bank statement, or book of record to establish you were in operation on or around February 15, 2020.

 

If you have employees, the following methodology should be used to calculate your maximum loan amount:

  1.  Compute 2019 or 2020 payroll (using the same year for all items) by adding the following:
    1. Your 2019 or 2020 Form 1040 Schedule C line 31 net profit amount (if you are using 2020 and have not yet filed a 2020 return, fill it out and compute the value), up to $100,000 on an annualized basis, as prorated for the period during which the payments are made or the obligation to make the payments is incurred, if this amount is over $100,000, reduce it to $100,000, if this amount is less than zero, set this amount at zero;
    2. 2019 or 2020 gross wages and tips paid to your employees whose principal place of residence is in the United States computed using 2019 or 2020 IRS Form 941 Taxable Medicare wages & tips (line 5c- column 1) from each quarter plus any pre-tax employee contributions for health insurance or other fringe benefits excluded from Taxable Medicare wages & tips; subtract any amounts paid to any individual employee in excess of $100,000 on an annualized basis, as prorated for the period during which the payments are made or the obligation to make the payments is incurred and any amounts paid to any employee whose principal place of residence is outside the United States; and
    3. 2019 or 2020 employer contributions to employee group health, life, disability, vision and dental insurance (portion of IRS Form 1040 Schedule C line 14 attributable to those contributions); retirement contributions (Form 1040 Schedule C line 19), and state and local taxes assessed on employee compensation (primarily under state laws commonly referred to as the State Unemployment Tax Act or SUTA from state quarterly wage reporting forms).
  2.  Calculate the average monthly amount (divide the amount from Step 1 by 12).
  3.  Multiply the average monthly amount from Step 2 by 2.5.
  4.  Add the outstanding amount of any EIDL made between January 31, 2020 and April 3, 2020 that you seek to refinance. Do not include the amount of any advance under an EIDL COVID-19 loan (because it does not have to be repaid).
    Note: You must supply your 2019 or 2020 (whichever you used to calculate loan amount) Form 1040 Schedule C, Form 941 (or other tax forms or equivalent payroll processor records containing similar information) and state quarterly wage unemployment insurance tax reporting forms from each quarter in 2019 or 2020 (whichever you used to calculate loan amount) or equivalent payroll processor records, along with evidence of any retirement and health insurance contributions, if applicable.  A payroll statement or similar documentation from the pay period that covered February 15, 2020 must be provided to establish you were in operation on February 15, 2020.

 

Q: How does a seasonal employer calculate the maximum PPP loan amount?

As defined by section 315 of the Economic Aid Act, a borrower is a seasonal employer if it does not operate for more than 7 months in any calendar year or, during the preceding calendar year, it had gross receipts for any 6 months of that year that were not more than 33.33 percent of the gross receipts for the other 6 months of that year.  Under section 336 of the Economic Aid Act, a seasonal employer must determine its maximum loan amount for purposes of the PPP by using the employer’s average total monthly payments for payroll for any 12-week period selected by the seasonal employer beginning February 15, 2019, and ending February 15, 2020.

Q: How do farmers and ranchers calculate the maximum PPP loan amount?

How you calculate your maximum loan amount depends upon whether you employ other individuals.  If you have no employees, the following methodology should be used to calculate your maximum loan amount:

  1.  Find your 2019 or 2020 IRS Form 1040 Schedule F line 9 gross income (if you are using 2020 and you have not yet filed a 2020 return, fill it out and compute the value).  If this amount is over $100,000, reduce it to $100,000.  If this amount is zero or less, you are not eligible for a PPP loan.
  2.  Divide the amount from Step 1 by 12.
  3.  Multiply the average monthly gross income amount from Step 2 by 2.5.
  4.  Add the outstanding amount of any Economic Injury Disaster Loan (EIDL) made between January 31, 2020 and ending on April 3, 2020 that you seek to refinance.  Do not include the amount of any advance under an EIDL COVID-19 loan (because it does not have to be repaid).
    Note:  You must provide the 2019 or 2020 (whichever you used to calculate loan amount) Form 1040 Schedule F with your PPP loan application to substantiate the applied-for PPP loan amount and a 2019 or 2020 (whichever you used to calculate loan amount) IRS Form 1099-MISC detailing nonemployee compensation received (box 7), invoice, bank statement, or book of record that establishes you are self-employed.  You must provide a 2020 invoice, bank statement, or book of record to establish you were in operation on or around February 15, 2020.

 

If you have employees, the following methodology should be used to calculate your maximum loan amount:

  1.  Compute 2019 or 2020 payroll (using the same year for all items) by adding the following:
    1. The difference between your 2019 or 2020 Form 1040 Schedule F line 9 gross income amount (if you are using 2020 and you have not yet filed a 2020 return, fill it out and compute the value), and the sum of Schedule F lines 15, 22, 23, and 37, up to $100,000 on an annualized basis, as prorated for the period during which the payments are made or the obligation to make the payments is incurred, if this amount is over $100,000, reduce it to $100,000, if this amount is less than zero, set this amount at zero;[1]
    2. 2019 or 2020 gross wages and tips paid to your employees whose principal place of residence is in the United States computed using 2019 or 2020 IRS Form 941 Taxable Medicare wages & tips (line 5c- column 1) from each quarter plus any pre-tax employee contributions for health insurance or other fringe benefits excluded from Taxable Medicare wages & tips; subtract any amounts paid to any individual employee in excess of $100,000 on an annualized basis, as prorated for the period during which the payments are made or the obligation to make the payments is incurred and any amounts paid to any employee whose principal place of residence is outside the United States; and
    3. 2019 or 2020 employer contributions for employee group health, life, disability, vision and dental insurance (portion of IRS Form 1040 Schedule F line 15 attributable to those contributions), employer contributions for employee retirement contributions (Form 1040 Schedule F line 15), and state and local taxes assessed on employers for employee compensation (primarily under state laws commonly referred to as the State Unemployment Tax Act or SUTA from state quarterly wage reporting forms).
  1.  Calculate the average monthly amount (divide the amount from Step 1 by 12).
  2.  Multiply the average monthly amount from Step 2 by 2.5.
  3.  Add the outstanding amount of any EIDL made between January 31, 2020 and April 3, 2020 that you seek to refinance. Do not include the amount of any advance under an EIDL COVID-19 loan (because it does not have to be repaid).
    Note: You must supply your 2019 or 2020 (whichever you used to calculate loan amount) Form 1040 Schedule F, Form 941 (or other tax forms or equivalent payroll processor records containing similar information) and state quarterly wage unemployment insurance tax reporting forms from each quarter in 2019 or 2020 (whichever you used to calculate loan amount) or equivalent payroll processor records, along with evidence of any retirement and health insurance contributions, if applicable.  A payroll statement or similar documentation from the pay period that covered February 15, 2020 must be provided to establish you were in operation on February 15, 2020.
    A farmer or rancher who received a PPP loan before December 27, 2020 may request a recalculation of the maximum loan amount based on the formula described above regarding gross income, if doing so would result in a larger covered loan amount and may receive an increase in its PPP loan based on the recalculation.

 

Q: How do partnerships calculate the maximum loan amount?

The following methodology should be used to calculate the maximum amount that partnerships can borrow:

  1.  Compute 2019 or 2020 payroll (using the same year for all items) by adding (1) net earnings from self-employment of individual general partners in 2019 or 2020, as reported on IRS Form 1065 K-1, reduced by section 179 expense deduction claimed, unreimbursed partnership expenses claimed, and depletion claimed on oil and gas properties, multiplied by 0.9235,[2] that is not more than $100,000 per partner; (2) 2019 or 2020 gross wages and tips paid to your employees whose principal place of residence is in the United States, if any, which can be computed using 2019 or 2020 IRS Form 941 Taxable Medicare wages and tips (line 5c-column 1) from each quarter plus any pre-tax employee contributions for health insurance or other fringe benefits excluded from Taxable Medicare wages and tips, subtracting any amounts paid to any individual employee in excess of $100,000 and any amounts paid to any employee whose principal place of residence is outside the U.S; (3) 2019 or 2020 employer contributions for employee group health, life, disability, vision and dental insurance, if any (portion of IRS Form 1065 line 19 attributable to those contributions); (4) 2019 or 2020 employer contributions to employee retirement plans, if any (IRS Form 1065 line 18); and (5) 2019 or 2020 employer state and local taxes assessed on employee compensation, primarily state unemployment insurance tax (from state quarterly wage reporting forms), if any.
  2.  Calculate the average monthly payroll costs (divide the amount from Step1 by 12).
  3.  Multiply the average monthly payroll costs from Step 2 by 2.5.
  4.  Add any outstanding amount of any EIDL made between January 31, 2020 and April 3, 2020 that you seek to refinance.  Do not include the amount of any advance under an EIDL COVID-19 loan (because it does not have to be repaid).
    Note: You must supply 2019 or 2020 (whichever you used to calculate loan amount) IRS Form 1065 (including K-1s) and other relevant supporting documentation if the partnership has employees, including the 2019 or 2020 (whichever you used to calculate loan amount) IRS Form 941 and state quarterly wage unemployment insurance tax reporting form from each quarter (or equivalent payroll processor records or IRS Wage and Tax Statements) along with records of any retirement or health insurance contributions. If the partnership has employees, a payroll statement or similar documentation from the pay period that covered February 15, 2020 must be provided to establish the partnership was in operation and had employees on that date. If the partnership has no employees, an invoice, bank statement, or book of record establishing the partnership was in operation on February15, 2020 must instead be provided

Q: Can a single corporate group receive unlimited PPP loans?

No.  To preserve the limited resources available to the PPP program, and in light of the previous lapse of PPP appropriations and the high demand for PPP loans, businesses that are part of a single corporate group shall in no event receive more than $20,000,000 of PPP loans in the aggregate.  For purposes of this limit, businesses are part of a single corporate group if they are majority owned, directly or indirectly, by a common parent.   It is the responsibility of an applicant for a PPP loan to notify the lender if the applicant has applied for or received PPP loans in excess of the amount permitted by this interim final rule and withdraw or request cancellation of any pending PPP loan application or approved PPP loan not in compliance with the limitation set forth in this rule.  Failure by the applicant to do so will be regarded as a use of PPP funds for unauthorized purposes, and the loan will not be eligible for forgiveness.  A lender may rely on an applicant’s representation concerning the applicant’s compliance with this limitation.  The Administrator, in consultation with the Secretary, determined that limiting the amount of PPP loans that a single corporate group may receive will promote the availability of PPP loans to the largest possible number of borrowers, consistent with the CARES Act.  The Administrator has concluded that a limitation of $20,000,000 strikes an appropriate balance between broad availability of PPP loans and program resource constraints.

SBA’s affiliation rules, which relate to an applicant’s eligibility for PPP loans, and any waiver of those rules under the CARES Act, continue to apply independent of this limitation.  Businesses are subject to this limitation even if the businesses are eligible for the waiver-of-affiliation provision under the CARES Act or are otherwise not considered to be affiliates under SBA’s affiliation rules.

This rule has no effect on lender obligations required to obtain an SBA guarantee for PPP loans.

Q: What qualifies as “payroll costs?”

Payroll costs consist of compensation to employees (whose principal place of residence is the United States) in the form of salary, wages, commissions, or similar compensation; cash tips or the equivalent (based on employer records of past tips or, in the absence of such records, a reasonable, good-faith employer estimate of such tips); payment for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payment for the provision of employee benefits consisting of group health care or group life, disability, vision, or dental insurance,[3] including insurance premiums, and retirement; payment of state and local taxes assessed on compensation of employees; and for an independent contractor or sole proprietor, wages, commissions, income, or net earnings from self-employment, or similar compensation.

Q: Is there anything that is expressly excluded from the definition of payroll costs?

Yes.  The Act expressly excludes the following:

  1. Any compensation of an employee whose principal place of residence is outside of the United States;
  2. The compensation of an individual employee in excess of $100,000 on an annualized basis, as prorated for the period during which the payments are made or the obligation to make the payments is incurred;
  3. Federal employment taxes imposed or withheld during the applicable period, including the employee’s and employer’s share of FICA (Federal Insurance Contributions Act) and Railroad Retirement Act taxes, and income taxes required to be withheld from employees; and iv. Qualified sick and family leave wages for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act (Public Law 116– 127).

Q: May fishing boat owners include payroll costs in their PPP loan applications that are attributable to crewmembers described in section 3121(b)(20) of the Internal Revenue Code?

Yes.  A fishing boat owner may include compensation reported on Box 5 of IRS Form 1099-MISC and paid to a crewmember described in section 3121(b)(20) of the Code, up to $100,000 on an annualized basis, as prorated for the period during which the payments are made or the obligation to make the payments is incurred, as a payroll cost in its PPP loan application.

Q: Do independent contractors count as employees for purposes of PPP loan calculations?

No, independent contractors have the ability to apply for a PPP loan on their own so they do not count for purposes of a borrower’s PPP loan calculation.

Q: Do student workers count when determining the number of employees for PPP loan eligibility?

Yes.  Student workers generally count as employees, unless (a) the applicant is an institution of higher education, as defined in the Department of Education’s Federal Work-Study regulations, 34 C.F.R. 675.2, and (b) the student worker’s services are performed as part of a Federal Work-Study Program (as defined in those regulations) or a substantially similar program of a State or political subdivision thereof.  Institutions of higher education must exclude work study students when determining the number of employees for PPP loan eligibility, and must also exclude payroll costs for work study students from the calculation of payroll costs used to determine their PPP loan amount.

 Other helpful tips can be found in the SBA’s FAQ’s at the following link.

Q: What is acceptable evidence of a 25% revenue reduction?

ATC is accepting the following as evidence of a 25% revenue reduction between a single quarter in 2019 versus the same quarter in 2020:

  1. Internally prepared company financial statements (i.e. QuickBooks reports).
  2. Sales tax reports
  3. Other revenue calculations as supported by bank statements with qualifying deposits clearly noted and tabulated.

Q: Do affiliation rules apply to round 2 PPP Loans?

Yes. The following was taken from the Interim Final Rules:

  1. EMPLOYEE TEST: The same affiliation rules that apply to First Draw PPP Loans apply to Second Draw PPP Loans, except as provided in this IFR. As with First Draw PPP Loans, in most cases, a borrower is considered together with its affiliates to determine eligibility for the PPP. However, the CARES Act waived the affiliation rules for certain categories of borrowers. Paragraph 7(a)(37)(E) of the Small Business Act, as amended by the Economic Aid Act, applies the same waivers to Second Draw PPP Loans, adds a waiver for certain eligible news organizations, and makes adjustments to reflect the reduced size requirement for Second Draw PPP Loans.  Specifically, business concerns with a NAICS code beginning with 72 qualify for the affiliation waiver for Second Draw PPP Loans if they employ 300 or fewer employees. Eligible news organizations with a NAICS code beginning with 511110 or 5151 (or majority-owned or controlled by a business concern with those NAICS codes) may qualify for the affiliation waiver for Second Draw PPP Loans only if they employ 300 or fewer employees per physical location. Subsection (d)(2) implements these revised affiliation waivers. SBA also adopted a religious exemption to the affiliation rules by regulation, which applies to Second Draw PPP loans.
  2. REVENUE REDUCTIONTESTGross receipts includes 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. Generally, receipts are considered “total income” (or in the case of a sole proprietorship, independent contractor, or self-employed individual “gross income”) plus “cost of goods sold,” and excludes net capital gains or losses as these terms are defined and reported on IRS tax return forms. Gross receipts do not include the following: taxes collected for and remitted to a taxing authority if included in gross or total income (such as sales or other taxes collected from customers and excluding taxes levied on the concern or its employees); proceeds from transactions between a concern and its domestic or foreign affiliates; and amounts collected for another by a travel agent, real estate agent, advertising agent, conference management service provider, freight forwarder or customs broker. All other items, such as subcontractor costs, reimbursements for purchases a contractor makes at a customer’s request, investment income, and employee-based costs such as payroll taxes, may not be excluded from gross receipts.
  3. Gross receipts of affiliates are calculated as follows:
    1.  Gross receipts of a borrower with affiliates is calculated by adding the gross receipts of the business concern with the gross receipts of each affiliate.
    2.  If a borrower has acquired an affiliate or been acquired as an affiliate during 2020, gross receipts includes the receipts of the acquired or acquiring concern. This aggregation applies for the entire period of measurement, not just the period after the affiliation arose. However, if a concern acquired a segregable division of another business concern during 2020, gross receipts do not include the receipts of the acquired division prior to the acquisition.
    3.  The gross receipts of a former affiliate are not included. This exclusion of gross receipts of such former affiliate applies during the entire period of measurement, rather than only for the period after which affiliation ceased. However, if a borrower sold a segregable division during 2020, the gross receipts will continue to include the receipts of the division that was sold.
    4.  All terms in this subsection shall have the meaning attributed to them by the IRS.

For an eligible nonprofit organization, a veterans organization, an eligible nonprofit news organization, an eligible 501(c)(6) organization, or eligible destination marketing organization, gross receipts means gross receipts within the meaning of section 6033 of the Internal Revenue Code of 1986.

The amount of any forgiven First Draw PPP Loan shall not be included toward any borrower’s gross receipts.

Any business concern that has more than one physical location and that employs not more than 300 employees per physical location is eligible to receive a Second Draw PPP Loan if it is assigned a NAICS code beginning with 72 at the time of loan disbursement and otherwise meets the eligibility criteria in subsection (c)(1).

Any business concern, or any station which broadcasts pursuant to a license granted by the Federal Communications Commission under title III of the Communications Act of 1934 (47 U.S.C. 301 et seq.), that has more than one physical location and that employs not more than 300 employees per physical location is eligible to receive a Second Draw PPP Loan if it meets the eligibility criteria in subsection (c)(1) and: (1) is majority owned or controlled by a business concern that is assigned a NAICS code beginning with 511110 or 5151 or, with respect to a public broadcasting entity (as defined in section 397(11) of the Communications Act of 1934 (47 U.S.C. 397(11))), has a trade or business that falls under such a code; and (2) makes a good faith certification that proceeds of the loan will be used to support expenses at the component of the organization that produces or distributes locally focused or emergency information.

NOTE ON BENEFICIAL OWNERSHIP FOR NOT FOR PROFITS

In the portal, not for profits will be required to designate at least one Officer or Board member as a 20% “owner” to process your application.  It is understood that there is indeed no ownership by the individual(s) but this is how the program is demonstrating the “control prong” for Federally regulated Beneficial Ownership.  This issue is being addressed by our vendor (who has received clearance from the SBA to proceed in this manner) but will not be cleared before the opening of the portal on Tuesday.

Q: How do I locate my date of incorporation?

 

[1] Any employee payroll costs should be subtracted from the farmer’s or rancher’s gross income to avoid doublecounting amounts that represent pay to the employees of the farmer or rancher.

[2] This treatment follows the computation of self-employment tax from IRS Form 1040 Schedule SE Section A line 4 and removes the “employer” share of self-employment tax, consistent with how payroll costs for employees in the partnership are determined.

[3] This provision has been modified to conform to section 308 of the Economic Aid Act. This revision is effective as if included in the CARES Act and applies to any loan made before, on, or after December 27, 2020, including forgiveness of such a loan.

January 15, 2021

The portal will be opening for applications on Tuesday, January 19, 2021. The link will be available on this page at that time.

In the meantime, please note the following:

  1. The SBA Loan Number can be found on form 3508 for those who have applied for forgiveness. For those who have not applied for forgiveness, please send an email with the borrower’s name and address to , and it will be sent to you.
  2. NAICS codes can be located at https://www.naics.com/search/
  3. We will be requiring supporting documentation of the 25% reduction in revenue for applications under $150,000 at the time of application, not only at forgiveness.

DO NOT SHARE THIS PAGE ADDRESS. ACCESS TO THE PORTAL IS LIMITED.

 

January 11, 2021

Work on the portal continues such that we will be ready to accept applications once the SBA gives the go-ahead. In the meantime, we wanted to make you aware that the applications (forms 2483 – First Draw Borrower Application and 2483 SD – Second Draw Borrower Application) are accessible for viewing on the SBA website (www.sba.gov/ppp).

Please note: We will be using the online portal to accept applications and will not be accepting paper applications. At this point, we believe the SBA will begin accepting applications from lenders later this week or early next week.

We hope this may help you prepare for when the portal becomes available.

 

January 8, 2021

The Small Business Administration (SBA) along with the U.S. Department of the Treasury have released initial guidance on the Payroll Protection Program (PPP) Second Draw and PPP Amendments to the First Draw funding.

The program is opening to certain non-bank financial institutions for a limited pool of applicants on Monday, January 11, 2021, and is ANTICIPATED TO BE MADE AVAILABLE TO BANKS LATER IN THE WEEK OR EARLY THE FOLLOWING WEEK.

The program closes for applications on March 31, 2021. There is $806,450,000,000 in funding for the programs. A borrower must have fully exhausted Round 1 funding on eligible expenses before receiving funding under Round 2.

The following items outline the changes from Round 1 to Round 2:

  1. 300 or fewer employees. Round 1 required 500 or fewer employees.
  2. Revenue reduction of 25% or greater in any one quarter of 2020 compared to same quarter of 2019. Revenue reduction will be determined by gross receipts. Gross receipts are measured as revenue received or accrued in accordance with the borrower’s accounting method. Do not include Round 1 funding or forgiveness in the measurement.
  3. Hotels, restaurants, and any other entity operating under the North American Industry Classification System beginning with 72 (Accommodation and Food Services) are able to calculate funding at 3.5 months of payroll costs, which is an increase over the 2.5 months of payroll costs for all other industries.
  4. Maximum funding amount is $2,000,000 compared to $10,000,000 allowed in Round 1.
  5. Period for calculating eligible funding can be 2019 or 2020 payroll costs.
  6. Additional items included in the payroll cost calculation paid by the employer above employee payroll withholdings earmarked for the costs are:
    1. Group life
    2. Disability
    3. Vision
    4. Dental

Forgiveness remains reliant upon 60% of the funds being used on payroll costs. Borrowers have 8 to 24 weeks from the date of receipt of funds to use the money on costs deemed eligible for forgiveness.

Additional items eligible for forgiveness in Round 2 include:

  1. Payroll costs paid by the employer above employee payroll withholdings earmarked for the costs:
    1. Group life
    2. Disability
    3. Vision
    4. Dental
  2. Covered operational expenditures: business software, cloud computing, product or service delivery, processing payment and tracking of payroll, human resources, sales and billing functions, accounting or tracking of supplies and inventory
  3. Covered property damage costs
  4. Covered supplier costs
  5. Worker PPE and related protection expenditures

More information will be disseminated as it is received.

 

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