Can you apply for first draw and second draw PPP at the same time?

Applying for a First and Second Draw in the Same Round The SBA prohibits the covered periods for First and Second Draws from overlapping. You must use all funds on eligible uses prior to receiving a Second Draw. (You will be asked to certify that this has been done.)

What is the reference period for PPP second draw?

Reference Period: The reference period is, at the borrower’s election, either (i) February 15, 2019 through June 30, 2019; (ii) January 1, 2020 through February 29, 2020; or (iii) in the case of seasonal employers, either of the preceding periods or any consecutive 12-week period between February 15, 2019 and February …

Who qualifies for second round of PPP?

Eligibility requires a business to have 300 employees or fewer. Also, the business must have a 25\% decrease in any quarter’s gross receipts from 2019 to 2020, which shows the company has experienced financial hardship. Gross receipts include all revenue, including interest and dividends.

Who can apply for PPP Round 2?

Companies with 300 or fewer employees who suffered a 25\% drop in any quarter’s revenue from 2019 to 2020 are eligible for the second round of PPP. This means a 25\% or more reduction in gross income from any quarter in 2020 relative to that same quarter in 2019 or during the year of 2020 as compared to the year of 2019.

Can owners draw be included in PPP?

When it comes to the PPP, your payroll will be limited to the wages that you are taxed on. This will not be owner draws, distributions, or loans to shareholders, because none of those types of transactions are subject to payroll or self-employment tax.

How does the 2nd draw PPP work?

Like the first round, second-draw PPP loans are entirely forgivable if the funds are used for approved expenses between the 8-and-24-week “covered period” and fund disbursement is properly documented. To obtain forgiveness, employee and compensation levels must also be maintained during the covered period.

How is PPP second draw calculated?

If payroll is being run, take line 7 and subtract the payroll costs in lines 14, 19, and 26. Use a maximum of $100,000. Divide this number by 12 and add it to your average monthly payroll expense. Multiply by 2.5 to find your PPP loan amount.