Do you have questions about the second round of Paycheck Protection Program (PPP) Loans? You have come to the right place!
By Members 1st
Our Concierge team is working hard to answer questions from small business owners. We sat down with them to learn the top 5 questions you are asking and hear their advice for small businesses applying for PPP Loans.
A little background about your concierge's role...
Each small business who applies for a PPP Loan gets connected to a personal concierge. This person is your dedicated guide to all things PPP-related and will help you navigate through the loan application process. They can also guide you through the details of spending, saving and planning for the future of your business. Best of all, they are here whenever you need them.
Below are the top 5 most asked questions that our concierges have received about PPP Loans and their answers. They also added in a few pieces of advice about the application process.
Question 1: Am I eligible to apply for a PPP Loan?
Small businesses with 300 or fewer employees—including nonprofits, veteran organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors—are eligible provided that the business can demonstrate a 25% reduction in revenue compared to 2019.
Question 2: If I did not apply for the first PPP Loan, can I apply for this one and what do I need to do to apply?
First time participants can take advantage of First Draw PPP Loans. You will need to follow the rules from the first round as well as provide supporting documents when you apply.
Question 3: Does my first PPP Loan have to be forgiven to apply for round 2?
No, it does not need to be forgiven for you to apply for this round. You just need to know the Loan Number and we can help with that if you have your loan with us.
Question 4: How large can my loan be?
Your loan can be up to 2.5 times your average monthly payroll costs from the last year, or 3.5 times for businesses in NAICS code 72 Accommodation and Food Services. That amount is subject to a $2 million cap. If you are a seasonal or new business, you will use different applicable time periods for your calculation. Payroll costs will be capped at $100,000 annualized for each employee. (For calculation of payroll costs, the loan amount can be up to 2.5 times the average monthly payroll costs for the prior year.)
Question 5: How long does it take for my money to get deposited after my application is approved by SBA?
This second time around, the SBA is manually reviewing applications. At the earliest, we are hearing that they could be turned around in about 72 hours after they are transmitted to SBA. Overall, the process is as follows:
- Members apply through our online portal.
- The application is reviewed by our underwriters and then we send it to the SBA for their final review and confirmation.
Advice from our Concierge team:
"Take a moment, and don't panic. Look at your 2020 revenue compared to your 2019 revenue and decide if you need a loan. If you do, apply for what you think you qualify for and have documentation that can justify your request."
"Run your PPP loan by your CPA, as well as any questions you may have. Of course, remain calm—we've got your back!"
"Follow any instructions or guides that your lender provides you. Many of the difficulties applicants face are caused by not following instructions or not applying as instructed."
Have additional questions? Contact your personal concierge through our online banking or mobile app or by emailing firstname.lastname@example.org. For the latest information about PPP Loans visit the SBA's website.
Don't forget, our PPP Loan portal is open! Apply for your PPP Loan here. The deadline to apply for this second round is March 31, 2021.
This content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.