Important Information to Simplify Your Application Process
Does your business qualify for PPP Second Draw loan?
A borrower is generally eligible for a Second Draw PPP Loan if the borrower meets the following conditions:
How are Gross Receipts defined?
Gross Receipts is defined to generally include “total income” plus cost of goods sold and excludes capital gains. Refer to the Small Business Act for clarification.
What is different on this PPP loan application compared to Round 1 and 2?
To complete your application, you will need:
Once your PPP loan is approved we will fund the loan proceeds directly into your Quantum deposit account. We will provide you a deposit account application during the PPP process if you do not have a deposit account for the entity for which you are applying.
What documents do I need to provide?
For ALL APPLICANTS
1) 2483 SD, Borrower Application Form
For most entities supporting documents will include:
1) 2019 or 2020, 941 Form(s) for all 4 quarters or equivalent payroll records and reports
For borrowers who are self-employed and have employees:
1) 2019 or 2020 (whichever is being used to calculate loan amount) IRS Form 1040 Schedule C
If the applicant is self-employed and does not have employees:
1) 2019 or 2020 (whichever is being used to calculate loan amount) Form 1040 Schedule C
Full Forgiveness Terms Second Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:
• Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan;
For specific questions related to the Lenders Cooperative Loan Portal:
One of the first questions on the application is about affiliated entities. If you answer “yes” to this question, then you must enter those company names at the bottom of the first page. If you do not enter the affiliated company name/names you will get an error message that reads “has other businesses.”
NAICS box is for letters, not numbers. Please type the name of your industry and then the dropdown box will activate with specific NAICS categories.
Revenue “Receipt” Calculation:
Please provide documentation for the selected quarters that you are comparing. This documentation could be based on an internally prepared statement. When providing quarterly documentation, you must upload the actual three months of quarterly information for both quarters that you selected.
Please do not upload any password protected files as we will not be able to review the document.
As in the first two rounds of PPP, salaries are capped at $100,000 per employee. We are attaching an Excel spreadsheet to help calculate the average monthly salary. This will assist you when completing this part of the application.
For an owner-employee, if using 24 weeks, the maximum amount of compensation eligible for forgiveness is $20,833. This amount would need to be pro-rated as well, as follows.