As you are likely aware, Congress overwhelmingly voted to pass a second COVID-19 relief package to bring much-needed aid to Americans struggling during the pandemic. The legislation easily passed in the House before breezing through the Senate. The $900 billion package that was signed into law includes a new round of stimulus checks, PPP and other loan programs, an extension of unemployment benefits and more money for vaccines and education.
Just as we were in April 2020, InBank will be ready to serve our customers and communities when the new PPP application and guidelines are released and finalized by the SBA. Until then, we would like to share some of the information we have on hand so your business can be prepared should you qualify for a second draw PPP loan.
• Fewer than 300 employees
• Reduction in quarterly revenues of at least 25% compared to the same quarter in 2019
• Stock not traded on a national exchange
• 501(c)(6) are eligible, but any entity for which lobbying comprises more than 15% of receipts or activities is not eligible
• Maximum loan = 2.5 times average monthly payroll or $2 million, whichever is less. Businesses in the restaurant and hospitality industries are eligible for loans for 3.5 times average monthly payroll
• Payroll expenses no less than 60% of eligible expenses. This bill expands eligible expenses to include PPE expense, costs associated with outdoor dining, and supplier costs.
Supporting Documents to Prepare
• Quarterly financial statements for all quarters in 2019 and 2020
• Company tax return for 2019
• 2019 Form 940/941
• 2020 Form 940/941
We appreciate your business and look forward to continuing to serve your needs during these challenging economic times. Please continue to reach out to your banker, check the InBank website for updates, and be on the lookout for ongoing communication as more concrete details are released on PPP loan applications.