![]() 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
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