Paycheck Protection Program Updates

What You Need to Know:

• The PPP Extension Act of 2021 extends the loan deadline by two months from March 31 to May 31
• Borrowers can set their loan covered period to be any length between 8 and 24 weeks to best meet their needs
• Loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, & worker protection expenditures
• The Program’s eligibility is expanded to include 501(c)(6)es, housing cooperatives, direct marketing organizations, among other types of organizations
• Eligibility requires a 25% quarterly reduction in revenue from 2019 – 2020  (learn more)
• Greater flexibility for seasonal employees
• Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount
• Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan
• The enactment of the Economic Aid Act

Start Preparing Today:

What can you do to get a jump start on your PPP application? Begin preparing the paperwork and documentation below. While the requirements are subject to change, we recommend compiling your paperwork and documentation to help ensure a timely and seamless PPP application process.

• Review the resources made available to you below, assemble your application, and direct your questions either to resources referenced in the documents or .
• Attend PPP preparation webinars or tune into existing PPP loan application webinar recordings (see below).
• To begin your PPP application, complete one of the following forms:

• • Paycheck Protection Program First Draw Borrower Application Form (revised 01-08-21)
  • Paycheck Protection Program Second Draw Borrower Application Form (01-08-21)

• Determine how you will demonstrate a 25% quarterly reduction in revenue from 2019-2020, and prepare your interim financial statement, which should include a profit and loss statement, and your balance sheet (learn more).
• Prepare your payroll expensive verification documents:
  • IRS Quarterly 940, 941, and 944 payroll tax reports
  • Payroll Processing Reports (CARES ACT REPORT) 2019 and YTD 2020 with corresponding bank statements. Please note that the YTD 2020 should include a listing of compensation of individual employees exceeding $100,000 annual salary. If the Payroll Processing Report is not available, assemble the 8-24 weeks of employee pay stubs for the covered period selected.
  • Include the breakdown of employee benefits.
• Most recent mortgage statement or rent statement (copy of executed lease)
• Most recent utility bills
• Documentation of all company expenses and interest payments
• Completed and signed IRS 4506-T Tax Transcript Forms on the business/organization and the principal owner(s).
• Articles of Incorporation(s)/Organization(s)
• By-Laws/Operating Agreement(s)
• Copies of driver’s licenses of all owners/Guarantors/authorized signers
• If applicable, 2019 Tax Returns including Schedule C, 10-99 Miscellaneous Forms, and 2019 and YTD 2020 income and expenses. This is necessary for self-employed individuals, independent contractors, and sole proprietors.

SBA Resources:

Updated First Draw Forms

• Form 2483 – First Draw Borrower Application (Updated 1/8/21)
• Form 2484 – First Draw Lender Guaranty Application (Updated 1/8/21)

Second Draw Forms

• Form 2483-SD – Second Draw Borrower Application (Released 1/8/21)
• Form 2484-SD – Second Draw Lender Guaranty Application (Released 1/8/21)

Guidance & Resources

• Accessing Capital for Minority Underserved, Veteran and Women-Owned Business Concerns Guidance(Released 1/6/21)
• Top-Line Overview of First Draw PPP Loans(Released 1/8/21)
• Top-Line Overview of Second Draw PPP Loans(Released 1/8/21)
• Interim Final Rule #1 – PPP as Amended by Economic Aid Act (Released 1/6/21)
• Interim Final Rule #2 – PPP Second Draw Loans (Released 1/6/21)
• Procedural Notice – Modifications to SBA Forms 3506, 3507 and 750 CA (PPP only) (Released 1/8/21)
• Accessing Capital for Minority Underserved, Veteran and Women-Owned Business Concerns Guidance(Released 1/6/21)

For more information and updates, visit SBA.gov/PPP or Treasury.gov/CARES

Additional Resources

• “More Stimulus at Last: Next Steps for Small Business Owners” – Brian Thompson, Forbes
• National Small Business Association (NSBA) Webinar on the New PPP
• CFO Services PPP Videos & Courses, Upcoming Events & Workshops, 1-1 Assistance
• PB Mares PPP Round 2 – What you Need to Know
• SBDCs COVID-19 Federal Resources for Small Businesses