Who's Down With PPP?
The Paycheck Protection Program (PPP) reopened on January 11, 2021 for community financial institutions and January 19, 2021 for all other lenders. Applications for First Draw (both initial First Draws as well as increases to previously submitted First Draws) and Second Draw loans able to be submitted through March 31, 2021.
To review changes brought about by the latest round of stimulus relief, including who is eligible for an increase to a First Draw and requirements for applying for a Second Draw, this article should get you up-to-speed: Focus on Taxation: PPP Reopens for First Draw and Also Provides a Second Draw.
And just for ease, I've included all the main guidance and forms that I regularly look at so thought you might get a benefit of having it all here, too. SBA & Treasury have dedicated pages for PPP, but sometimes it's hard to sort through it all to get what you need. Enjoy!
First Draw One-Pager: Provides a high-level overview of PPP First Draw Loans.
Second Draw One-Pager: Provides a high-level overview of PPP Second Draw Loans.
First Draw Borrower Q&A: Discusses how to calculate maximum loan amounts and what documentation to provide.
Second Draw Borrower Q&A: Discusses how to calculate maximum loan amounts and what documentation to provide.
IFR on PPP amendments: official guidance utilizes a Q&A format that attempts to consolidate First Draw PPP loan guidance regarding recent program amendments, eligibility, repayment, loan terms, forgiveness, and applications. It also discusses which PPP borrowers can reapply or request on increase in their First Draw PPP loans.
IFR on Second Draw PPP Loans: official guidance implementing provisions from the CAA for Second Draw PPP loans, such as the requirements that borrowers must have no more than 300 employees, show a 25 percent or greater reduction in gross receipts between comparable 2020 and 2019 quarters, and have used or plan to use the full amount of their first draw PPP loan by the expected date of disbursement of the second draw PPP loan.
IFR on PPP Loan Forgiveness: official guidance implements changes related to the forgiveness and review of loans made under the PPP.
First Draw Borrower Application Form: To be used by those wishing to take a First Draw PPP loan.
Borrower’s Disclosure of Certain Controlling Interests: Borrowers who received a First Draw PPP loan before December 27, 2020 must disclose on this form if a government official (as defined within the form) directly or indirectly held a controlling interest in the borrower at the time of the loan application.
Second Draw Borrower Application Form: To be used by those wishing to take a Second Draw PPP loan.
Loan Forgiveness Form 3508S: For use if the borrower received a PPP loan of $150,000 or less. “Rubber-stamp forgiveness” for loans under $50,000.
Loan Forgiveness Form 3508EZ: (Short Form) For use if the borrower received a PPP loan of more than $150,000 and either there was no salary or FTE reduction component reducing forgiveness.
Loan Forgiveness Form 3508: (Long Form) For use if the borrower received a PPP loan of more than $150,000 and there are salary or FTE reductions causing reduced loan forgiveness.