Once you鈥檝e calculated your average monthly payroll cost,multiply it by 2.5(3.5 for Second Draw food and accommodation services); this number is the maximum loan amount, up to $10 million for First Draws and $2 million for Second Draws.
People also ask
How do I show revenue reduction for the second PPP loan?
The first way of showing a revenue reduction for the second PPP loan is to compare the annual 2019 and 2020 receipts. This is if your business was operational. In all four quarters of 2019, you can show a reduction of annual receipts of 25% or greater in 2020 compared to 2019.
How are PPP loans calculated?
In 2020, PPP loans were calculated using your 2019 payroll costs and net profit. But for PPP loans after March 3, 2021, you have the option of using your 2019 or 2020 payroll costs and gross profit. For loans approved prior to March 3, 2021, applicants had to use their 2019 or 2020 net income (as reported on line 31 of their Schedule C)
When can I apply for a second PPP loan?
Applications for both first and second time borrowers are open now, and close on May 31, 2021. The PPP loan amount will be calculated very similarly to the original PPP loan calculation.
Who should calculate their second-draw PPP loan maximums?
How the following types of businesses should calculate their second-draw PPP loan maximums: self-employed (with or without employees), partnerships, S corporations, C corporations, nonprofit organizations, religious institutions, veterans organizations, tribal businesses and LLC owners.