PPP FAQs

Still have questions? Fill out our form for help:

Remember: be sure to read the instructions on Page 4 of the PPP application before filling it out!

Do I have to demonstrate a 25% revenue reduction between comparable quarters if this is my first PPP loan?

o No. The 25% revenue reduction is only applicable to borrowers who are taking out their second PPP loan. 

Can I show an annual 25% revenue reduction between 2020 and 2019 instead of demonstrating a 25% reduction in comparable quarters?

o If your PPP loan amount is less than $150,000, then you can use annual numbers. 

How can sole proprietors and independent contractors show a 25% reduction?

o Independent contractors can calculate their gross receipts per quarter by totaling the value of their invoices for each quarter.  For a calendar year of 12 months Q1 is January-March, Q2 is April – June, Q3 is July-September, and Q4 is October – December.

o Example - To calculate your Q1 2019 gross receipts, take the total $ value of all invoices from January-March 2019 and to calculate your Q2 2019 gross receipts, take the total $ value of all invoices from April-June 2019. 

o Once you calculate that value for every quarter for 2019 and 2020, then calculate the % reduction per quarter.  i.e. Calculate the % reduction between Q1 2020 and Q1 2019. 

o You can utilize this Excel spreadsheet to assist you.  

o Sole proprietors can submit their 2019 Schedule C and 2020 Draft Schedule C

What documentation needs to be included to prove the 25% reduction for a quarter?

o Documentation is only required for loans above $150,000. With your application submit either a quarterly P&L, annual P&L. 

How do I calculate payroll costs? 

Payroll costs consist of compensation to employees (whose principal place of residence is the United States) in the form of salary, wages, commissions, or similar compensation; cash tips or the equivalent (based on employer records of past tips or, in the absence of such records, a reasonable, good-faith employer estimate of such tips); payment for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payment for the provision of employee benefits consisting of group health care coverage, including insurance premiums, and retirement; payment of state and local taxes assessed on compensation of employees; and for an independent contractor or sole proprietor, wage, commissions, income, or net earnings from self-employment or similar compensation. Click here for an example of how a business with employees would calculate payroll. 

I have 1099 contractors working for my business, can I request funds for them?

o No, 1099 contractors must apply on their own with their 1099 form

I am an Independent contractor; do I qualify for PPP?

o Yes,  with your PPP application you will be required to submit your personal tax returns and you 1099 form for tax documents instead of business tax returns.you will submit your 1099 form.

Is equity the same as Net Income?

o No, equity is not realized into hard cash.

Can I apply for more than one business I own?

o Yes, if they have different EIN numbers.

I started my business January 2020, do I qualify for PPP?

o Yes, if your business was established before February 15, 2020 you qualify

If I started my business after February 15th 2020, am I eligible?

o No, you would have to have started your business prior to February 15th, 2020

If I had negative/0 profit in 2019, am I eligible? 

o Yes, as per the latest guidance, Schedule C Filers can use line 7 (gross profit) and employer firms can provide payroll documentation (form 941) to verify payroll. 

If I have negative/0 profit for 2020, am I eligible?

o Yes, as per the latest guidance, Schedule C Filers can use line 7 (gross profit) and employer firms can provide payroll documentation (form 941) to verify payroll. 

If I started my business in January 2020 but have 0 employees, what documents do I need? Do I still have to show a revenue drop? 

o You will need to show a 2020 Draft Schedule C

o You only have to show a drop in revenue if this is your second PPP draw.

I am in the process of applying for forgiveness for the first round of PPP. Am I still eligible to apply for this round?

o Yes, you have to attest  that you will or have used the full amount for authorized uses.

Does EIDL, Unemployment, PPP, and other types of grant funding count towards income?

o No.

This is my second round. Can I use the same 2019 schedule C. Because I have not completed my taxes for 2020 schedule C.

o Yes, but we encourage you to use a 2020 Draft Schedule C for more updated information

Does personal credit matter for PPP?

o No, credit will not be run for PPP.


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