PPP Second Draw

 

We’re continuing our promise to you to help Nevada’s small businesses, our economic engine, get back on track—and fast.  As part of our effort, we are excited to announce that we are accepting PPP second draw applications from our clients.

Our work on the original, first draw PPP loans resulted in supporting over 600 small businesses with over $115 million of much-needed funds during these uncertain times.   Thank you for letting us help you and your business.

Here is what you need to know about PPP Second Draw.

General Eligibility Criteria:

  • Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;

  • Has no more than 300 employees; and

  • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

  • The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, destination marketing organizations, among other types of organizations.

New PPP Second Draw Guidance Includes:

  • The maximum second draw PPP loan will be the lesser of $2 million or 2.5x average monthly payroll like with the initial, first draw PPP loans (3.5x if your business is in NAICS Code 72);

  • Full year 2019, fully year 2020, OR trailing 12 months payroll (capped at $100,000 per employee) can be used as the basis for the loan calculation.

  • PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs;

  • Applicants seeking up to $150,000, there will be a simple certification submission attesting to your qualification based on quarterly revenue reductions, number of employees, and so forth;.

  • PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;

  • The PPP provides greater flexibility for seasonal employees;

  • Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; 

  • Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan. 

  • The law provides full tax deductibility of business expenses on forgiven PPP loans (on both first and second draw PPP loans);

  • The loan forgiveness process for first draw and second draw PPP loans less than $150,000 will be simplified to a one-page certification (you will need to provide the number of employees retained, amount spent on payroll, total loan amount, etc.); and

  • The law repeals the CARES Act provision requiring borrowers to deduct the EIDL (Economic Injury Disaster Loans) advance from their PPP loan forgiveness amount.

Documentation Required for Application:

  • 2019 Tax Return

  • Proof of payroll by employee

  • Gross receipts from quarter selected in 2020

  • Gross receipts from the same quarter in 2019

  • 941s from 2020

  • 940 from 2019

  • Front and back of driver’s license from all owners with 20% or more equity

  • Articles of incorporation

If you are a current client and you qualify for PPP Second Draw, you will receive an email directly from us with your link to apply. 

If you are a prospective client and are interested in the PPP Program, please send an email to [email protected] to receive the link to the application form.

WE BANK FOR YOU.