FLORIDA SMALL BUSINESS DEVELOPMENT CENTER AT IRSC
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lected from customers and excluding taxes
levied on the concern or its employees;
• Proceeds from transactions between a
concern and its domestic or foreign affiliates;
and
• Amounts collected for another by a
travel agent, real estate agent, advertising
agent, conference management service
provider, freight forwarder or customs
broker.
All other items, such as subcontractor
costs, reimbursements for purchases a
contractor makes at a customer’s request,
investment income, and employee-based
costs such as payroll taxes, may not be
excluded from gross receipts.
The amount of any forgiven first draw
PPP loan or an EIDL advance grant is not
included in a borrower’s gross receipts.
Also note that for nonprofits and
veterans organizations, the term gross
receipts has the same definition as gross
receipts under section 6033 of the Internal
Revenue Code of 1986.
How much can I get with a second
draw PPP loan?
The maximum loan amount for second
draw loans is $2 million. In all the examples
below, the loan amount caps out
at $2 million. Businesses that are part of a
single corporate group can’t receive more
than $4 million of second draw PPP loans
total. An eligible entity may receive only
one second draw loan.
As before, a business may qualify for up
to 2.5 times average monthly payroll costs.
To get the average gross monthly payroll
cost you’ll total each month’s payroll costs
and divide by 12.
You can arrive at this figure either by
one of two methods — your choice except
businesses with a NAICS code beginning
in 72 — see below:
• Multiply average gross monthly payroll
cost for the one-year period before the
date the loan is made by 2.5; or
• Multiply average gross monthly
payroll cost for 2019 or 2020 borrower’s
choice by 2.5.
New businesses that were not in
business for the 1-year period preceding
Feb. 15, 2020 will use a slightly different
formula to arrive at the average monthly
payroll costs. They will divide the payroll
costs paid or incurred by the date they
apply by the number of months in which
those costs were incurred and multiply
the result by 2.5 or 3.5 for businesses with
NAICS code starting with 72. Again, new
businesses must have been in business by
Feb. 15, 2020, in order to be eligible.
Businesses with an NAICS code beginning
in 72 generally hospitality businesses
may receive up to 3.5 times average
monthly payroll cost using their choice of
these two methods:
• Multiply average gross monthly payroll
cost for the 1-year period before the
loan is made by 3.5; or
• Multiply average gross monthly
payroll cost for 2019 or 2020 borrower’s
choice by 3.5.
Seasonal businesses may apply based
on the average monthly payroll costs for
any 12-week period between Feb. 15,
2019, and Feb. 15, 2020. See the definition
of a seasonal business below.
Note that all of these methods allow the
business to use payroll costs incurred or paid
during the applicable time period. You may
incur a payroll cost but not actually pay it
until the pay period.
What is a seasonal employer?
A seasonal employer is defined as one
that:
• Does not operate for more than 7
months in any calendar year; or
• During the preceding calendar year,
had gross receipts for any 6 months of that
year that were not more than 33.33 percent
of the gross receipts of the employer
for the other 6 months of that year.
What counts as payroll?
Payroll is the same as defined in the
CARES Act with one new addition noted
below:
• Salary, wages, commissions or similar
compensation;
• Payment of cash tips or 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 dismissal or separation;
• Payment required for the provisions
of employee benefits including insurance
premiums employer cost;
• Payment of any retirement benefit
employer cost;
• Payment of state or local tax assessed
on the compensation of employees; and
• New: Group benefits are defined to
include group life, disability, vision, or
dental insurance.
It does not include:
• The compensation paid to an employee
in excess of $100,000 on an annualized
basis, as prorated for the period during
which the payments are made or the obligation
to make the payments is incurred;
• Any compensation of an employee
whose principal place of residence is outside
the United States; and
• Qualified sick and family leave wages
for which a credit is allowed under sections
7001 and 7003 of the Families First
Coronavirus Response Act.
Self-employed? Independent contractors
and the self-employed with no employees
may qualify based on 2.5 months
of average net profit capped at $100,000
on Line 31 of their Schedule C tax form for
2019 or 2020. Businesses with an NAICS
code beginning in 72 on their most recent
tax return qualify for 3.5 times average
monthly payroll for a second draw loan.
Do not include amounts paid to 1099
contractors in payroll; they may apply on
their own.
Self-employed? How to qualify for
a PPP loan?
Individual partners in a partnership
do not apply on their own. The payroll
calculation for partnerships is found in this
guidance.
What if I didn’t get a PPP loan
before?
There is funding for first draw PPP loans
and you can apply on terms similar to
the original CARES Act. You do not have
to demonstrate the 25% revenue loss for
a first-time loan, and your business may
qualify if it has more than 300 employees,
provided it qualifies based on the previous
CARES Act rules.
Can I get more money from my
first PPP loan?
You may, if you qualify and SBA has not
remitted a forgiveness payment to the
lender on that loan. There are specific circumstances
under which you may request
an increase in your first draw PPP loan and
you must work with the lender of record
the one who made the first loan.
If you returned all or part of your PPP
loan, you may apply for an “amount equal
to the difference between the amount
retained and the maximum amount applicable.”
Or, if you did not accept the full
amount you may request a modification
to allow you to borrow the full amount for
which your business is eligible.
Partnerships that applied based on the
partnership’s employees and other eligible
operating expenses, but did not include
any amount for partner compensation or
seasonal businesses that may have qualified
for a larger loan by using the average
total monthly payments for payroll for any
12-week period selected by the seasonal
employer beginning Feb. 15, 2019, and
ending Feb. 15, 2020, may also apply for
the difference.
Is there loan forgiveness for the
new PPP loans?
Yes. As with the first round of PPP, these >>
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