??PPP 2.0 Is Live! What You Need To Know!??
I guess you were wondering at our silence about the new round of PPP funding, while at the same time you’re getting bombarded with ads and unsolicited emails that promise the world and scaring you that the funds are almost gone.
Since our inception, we at the Funding Nexus earned the reputation of putting the interest of YOU, “our Client” before any monitory benefit. This was especially true when it came to the COVID relief programs when the rollout was very unclear, and we chose to rather lose some business but ensuring that we only give the right advice. The same is true now with the current bill. being that some important details were not 100% clear, we waited for all the information so that we clarify all uncertainties, knowing that this may mean everything for you, our client.
Now to our findings of the most relevant parts of the new bill:
? The bill allocates $284 billion for the Paycheck Protection Program; the funds will be distributed to those who did not take advantage of it in the first round, and for a second draw for those who qualify.
? The bill expanded the allowable expenses that the funds can be used for and included some industries that were previously not qualified.
? The bill simplified the forgiveness process for all loans less than $150,000 to be a 1-page application and shouldn’t require any documentation. (although they might be requested upon SBA review) Therefore the banks are asking to hold off on applying for forgiveness until the new changes are implemented.
? The bill allocates more funds for the EIDL program with a preference for those hit hardest or those in low-income community zones. Being that these details aren’t finalized yet, we need to give it some more time before we have clarity on the best ways to utilize this program.
? It increases the Employee Retention Tax Credit and makes it more accessible by allowing to get both the PPP and the ERTC, as long the same expenses aren’t used to claim both.
? It makes new SBA loans more attractive for lenders and business owners by covering 6-month of payments and waiving the SBA guarantee fee involved.
2nd Round of PPP Funding
To qualify for the additional round, the following is required;
? One must have been in business by Feb 15, 2020
? Have less than 300 employees.
? The loan amount shouldn’t exceed $2,000,000.
? One should have experienced a 25% decrease in sales in any quarter of 2020 compared to the same quarter in 2019.
? Payroll count could be based either on 2019 or 2020 (whichever is greater)
? Have applied and used up the funds of the first PPP round.
? The loan amount will be 2.5 X the average monthly payroll (an exception is made for those in the hospitality and accommodation businesses that qualify for 3.5X their monthly payroll – the NAICS code should start with 72 if you’re in this category.)
Important to note: being that part of the new bill is the expansion of the employee retention credit, it would make sense in some cases to take advantage of this credit before applying for the PPP program. We strongly recommended seeking advice from your CPA to determine when it’s the right time to proceed with the PPP application.
The documentation needed to apply is the following;
? PPP payroll calculation form from your payroll company or
? 2019 or 2020 form 940 and 941 for all 4 quarters to prove the payroll amount.
? Profit and loss report of a fiscal quarter of 2020 and the same quarter in 2019, to prove a drop in sales, or bank statements for those periods.
? If you apply with a different lender than the first round, they will ask for additional docs to verify your identity.
PPP Round 1 Applicants
For those who didn’t yet apply for the first round, the requirements remain the same as they were in the first place, there’s no need to show any drop in sales.
How To Apply
While we’re hopeful that this funding round will be more efficient and fairer than the previous time around, at the same time we need to expect that some banks might fail their applicants again just like they did in the first round. It’s hard for us to predict in confidence which lender or bank will perform better.
Generally, we recommend applying for the 2nd round with the same lender you applied in the first since they have most of the documentation and verification already. Of course, if you weren’t happy with their performance, you’re able to apply with a different lender for this round.
As in the first round, we’ll share some of the lenders that we expect to perform well but bear in mind that those lenders are technology-based and there’s no guarantee of the outcome or on their back-end support reliability.
At the same time, we’re offering to handle your application from start to finish, from determining your eligibility, preparing the application, to the eventual funding. We have direct contact with the underwriting and processing teams of the lenders we are using, should there be a need to resolve any issue.
If you’d like to take advantage of this, please reply to this email or call our office immediately as we are working on a first-come-first-served basis.
As those who trusted us with the first round know. Our dedication to every single application until they saw the funds in their bank accounts resulted in us having a 100% funding rate.
We’re proud to stand behind our commitment to being your true source of information and we’re always ready to be at your side to help you achieve your funding goals especially in those troubling times.
P.S. Please find the link below to apply on your own, but note if you'd like to take advantage of our complimentary service to reach out to our office.
Apply Now With Our PPP Partners
Stay Safe & Stay Tuned.!
Office: (718) 840–3530 x203
Mobile: (347) 798-6298
Email: [email protected]