Opening to Remaining Applicants Expected Very Soon
Application and Guidance Have Been Released

Applications for a new fresh round of Paycheck Protection Program funds have now officially opened today. Initially this is only for targeted community lenders who specialize in working with women-led and minority-owned small businesses.

Although we have not heard a definite timeline for when remaining SBA lenders will be allowed to start processing loans the assumption is that this will take place very soon. As with the initial PPP funds, the expectation is that they will draw down and be exhausted very quickly so now is the time to be in touch with your lender and be sure to get your documentation in order so you are ready to apply when it opens for you.

To assist in this process the Treasury Department and Small Business Administration have issued much anticipated guidance for the reconstituted Paycheck Protection Program (PPP2) including a new application.

Some considerations to keep in mind as you prepare if you are an organization that already received a PPP loan last year:

• Must show a 25% gross revenue quarterly (or annual) decline in 2020 vs comparative
  period from 2019 to qualify;
• Be prepared to show if you had initial PPP funding that these funds were fully expended
  for allowable purposes before disbursement of any new PPP2 funds;
• New simplified process for loans under $150K;
• Must have 300 or fewer employees;
• Calculation is 2.5 times average monthly payroll costs, maximum $2M;
• A special 3.5 times average monthly payroll costs maximum exists for hotels and
  restaurants (new for PPP2), maximum $2M;
• 60% of funds must be used for payroll expenses.

As your trusted business advisors, we at Polk and Associates remain committed to assist you
during this extraordinary time. Please reach out to us with questions you may have as we
stand with you as we weather this extraordinary crisis.

Polk & Associates

Large enough to serve a diverse clientele, yet small enough to maintain a hands-on approach, we are committed to maintaining the highest accounting and ethical standards with continuous education, extensive research resources, and excellent quality control.

Polk and Associates is a member of the Michigan Association of Certified Public Accountants, and the American Institute of Certified Public Accountants. The firm participates in the AICPA Peer Review Program, and has always received the highest level of award for its audit practice and quality control.