Pre-Applications For PPP Funding Round 2 Now Being Accepted!

34
DDMS IconNever Miss Another Deal - Follow DansDeals on Facebook

As part of the 2nd Coronavirus Stimulus Package, businesses can now take advantage of another round of PPP funding. If you previously received a PPP loan you can now apply for a 2nd one and if you didn’t take a first PPP loan, you can do that now as well.

DansDeals has partnered with Cross River Bank for readers to take advantage of PPP funding. You can start your pre-application now.

Cross River Bank was a leader in getting PPP funding to small businesses last year, behind only Bank of America and JPMorgan Chase in total number of successful PPP loans, but those larger banks generally prioritized loans from larger businesses.

By filling out the pre-application you will assist in streamlining the PPP application process ahead of time. Cross River will email you when you can finish the application and you won’t have to re-enter the information you will provide now.

 

About PPP:

The federal government’s Paycheck Protection Program, or PPP, is designed to allow contractors, self-employed individuals, non-profits, and small businesses to get funding to keep people on payroll. With this round more businesses are eligible, including 501(c)(6)s, destination marketing organizations (DMOs), housing cooperatives, newspapers, broadcasters, and radio stations.

First time borrowers had to be in business since 2/15/20 to be eligible and can have up to 500 employees.

Second time borrowers must have used the full amount of their first PPP loan, have up to 300 employees, and had experienced a 25% drop in revenue in any quarter of 2020 as compared to the same quarter in 2019.

There is no revenue drop requirement if you are taking your first PPP funding now.

 

PPP amount:

You can receive a loan up to 2.5 times the average monthly pay of yourself and your employees, capped at $20,833 in funding per employee. Accommodation and food establishments can take a forgivable loan of 3.5 times monthly payroll, capped at $29,167 in funding per employee. The maximum loan size of $2 million.

 

PPP qualified expenses for loan forgiveness:

If you spend the loan on qualified expenses it can be forgiven. The definition of qualified expenses as been expanded for both first and 2nd time borrowers. Previously you were able to use PPP funds for payroll, rent, utilities, and mortgage payments. You can now also have your loan forgiven for software, cloud computing, and other human resources and accounting needs, property damage costs due to public disturbances that occurred during 2020 that are not covered by insurance, covered supplier costs for goods essential to operations, covered worker protection expenditures, and personal protective equipment (PPE).

You need to spend at least 60% of the loan on payroll in order to qualify for full loan forgiveness. You can use the proceeds from the loan over 24 weeks.

If you borrow under $150,000, your loan can be forgiven using a simple 1 page form.

 

Deductibility:

If you receive forgiveness on a PPP loan, you can still deduct the expenses paid with that loan! Plus, you no longer have to deduct EIDL grants from PPP forgiveness.

 

Will you start your pre-application now for another round of PPP funding?

 

Disclaimer: Please note the information on this page is subject to change pursuant to guidance from the US Small Business Administration. Eligibility and availability are determined on a case-by-case basis by the lender and subject to guidance published by the SBA.

Leave a Reply

34 Comments On "Pre-Applications For PPP Funding Round 2 Now Being Accepted!"

All opinions expressed below are user generated and the opinions aren’t provided, reviewed or endorsed by any advertiser or DansDeals.

Sort by:   newest | oldest
C2CMom

Just completed the pre-application. Easy peasy! Thank you!

Nathan

Are you sure it’s open to all type of businesses? I think they narrowed the list….
If I received the first load andhave up to 300 employees, and had experienced a 25% drop in revenue in any quarter of 2020 as compared to the same quarter in 2019?

Thanks! ♥

Howard

25% drop in gross revenue or profit?

I Love Dan

Sales. Which is bogus as we’ve spent twice the capital, effort, and resources to close the same deals. So if our sales did not go down because we worked harder and spent more, we’re out of luck.
We closed the year at a loss in profit but sales were about the same.

jcc

What about self-employ? It might be harder for self-employ to proof the %25 drop.

Jb

Anyone know the answer to this: a new business formed in 2020. Have nothing to compare last year to this year. Is a business created in 2020 not eligible or still can get 2.5x payroll?

Pete Weiss

Are you joking?

Texas Totty

I’m sure your helpful response was appreciated.

Texas Totty

I asked the Agudah a similar question. It seems you can only compare to quarters of 2019 when you were in business and had 25% more revenue than that same quarter in 2020.

EricF

The FAQ at Cross River States:

In order to be eligible for a loan, first-time businesses must have been in operation on February 15, 2020.

CtownBin

What about the EIDL grant of $1k per employee? Did the new bill not revive this?

Dave

Do you need to have an LLC (or similar) or as long as you had a profit on your 1040 schedule c?

Dr Moose

1040 Schedule C is good enough

AsherO

Are DansDeals/CrossRiver PPP Applications going to be processed BlueVine’s platform? If yes, will BlueVine be the one doing the processing as well, or just hosting the application?

Jj

If im self employed can i still apply for PPP loan and whats the max i could get?

SM

if i have W2 income (unaffected) and a side hustle with 1099 (affected), can i apply for the PPP for 2.5x monthly 1099 income?

Nate

Yes

Boorech

Any way I can calculate my monthly payroll from first quarter only?

D

im confused If I am submitting for my first round of ppp shouldn’t they have the available questions for me to answer and not wait till the new guidelines for round 2 come out?

Shawn Karp

Please double check, but I believe one needs to check with their state to see if decoupled from (not following) federal rules for PPP loan. (Which would mean that the state will consider the forgiveness of loan as income)

bubbles

Is it true that the SBA doesnt approve loans less than $1000? If true, that means that one must have $4800 on line 31, no?
Also, for those who took a lot of business expenses, they will be making less now….

Hi

“Plus, you no longer have to deduct EIDL grants from PPP forgiveness.”

Is this only on the second PPP or even on the first one? If it applies to the first as well what would you do if you already applied for forgiveness less the EIDL advance? Is there a way to amend it?

lee

Some people are getting unemployment. Can they come off unemployment, use the PPP funds, and then go back on to unemployment? If so, how quickly can they use the PPP funds so as to not come off unemployment too long?

duh

This is socialism.

Nathan the prophet

How do you apply for the EIDL if living in a low income neighborhood?

shulem

when will they submit?

ci

no payroll
we take net income/loss at year end on personal tax return
can we still apply?

kranzman

I have same question. We use Single-Member llc and record net income on personal tax return.

Chaim

Yes! Schedule c line 31 from last personal tax return, divide in 12 for monthly average, you’ll get 2.5 times of this amount.

al

If I got 2.5x in first round of funding- i can get another 2.5x now, so long as I can prove 25% revenue drop?

wpDiscuz