FLORIDA SMALL BUSINESS DEVELOPMENT CENTER AT IRSC
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or customer safety requirement related
to COVID-19; may include the purchase,
maintenance, or renovation of assets that
create or expand:
• a drive-through window facility;
• an indoor, outdoor, or combined air or
air pressure ventilation or filtration system;
• a physical barrier such as a sneeze guard;
• an expansion of additional indoor,
outdoor, or combined business space;
• an onsite or offsite health screening
capability; or
• other assets relating to the compliance
with the requirements or guidance described
in subparagraph A as determined
by the SBA administrator in consultation
with the secretary of Health and Human
Services and the secretary of Labor; the
purchase of —
• Covered materials described in section
328.103a of title 44, Code 16 of Federal
Regulations, or any successor regulation;
• Particulate filtering face piece respirators
approved by the National Institute for
Occupational Safety and Health, including
those approved only for emergency use
authorization; or
• Other kinds of personal protective
equipment, as determined by the Administrator
in consultation with the secretary of
Health and Human Services and the secretary
of Labor; and does not include residential
real property or intangible property,
*Note: These new covered expenses apply
to any PPP loan except those already forgiven.
The “covered period” is the specific period
of time in which you must spend the funds.
It starts when the PPP loan is originated.
That’s the date the funds are deposited
to your bank account. You can choose a
covered period of eight to 24 weeks after the
loan is disbursed to spend the funds.
Forgiveness can be complex so make sure
you read the guidance from the SBA SBA.
gov/ppp carefully and consult with your
legal or tax advisers as soon as possible.
Will an EIDL Grant be subtracted
from my PPP for loan forgiveness?
No. The legislation repeals the requirement
that an EIDL grant advance be deducted
for purposes of PPP forgiveness. In
addition, the SBA administrator is required
within 15 days of when this legislation is
enacted to ensure equal treatment for borrowers
whose loans have already been forgiven
and who had their grants subtracted
from the forgiven amount.
Where can I get one of the new
PPP loans?
These loans are made by lenders approved
by the SBA. Nav matches borrowers
to PPP lending partners making these
loans. Sign up for a free Nav account to be
matched to a lender.
What else do I need to know?
There are a few other details that are
helpful to understand. As with the CARES
Act:
• No credit check is required. A few PPP
lenders did check applicant’s personal
credit in the first round of PPP, so if this is
of concern, be sure to ask before you apply;
• There is no personal guarantee; and
• Normal SBA collateral requirements
are waived.
How do I apply for one of these
PPP loans?
Lenders approved by the SBA will make
these loans. Keep in mind, however, that
you will submit your application through
your lender who likely will require you to
fill out an application online. You’ll need to
submit the following information with the
application:
If you are not self-employed, Form
941 or other tax forms containing similar
information and state quarterly wage
unemployment insurance tax reporting
forms from each quarter in 2019 or 2020
whichever was used to calculate payroll,
as applicable, or equivalent payroll processor
records, along with evidence of any
retirement and employee group health,
life, disability, vision and dental insurance
contributions. A partnership must also
include its IRS Form 1065 K-1s.
If you are self-employed with no
employees, IRS Form 1040 Schedule C
whichever was used to calculate loan
amount; documentation that you are selfemployed
such as IRS Form 1099-MISC
detailing nonemployee compensation
received box 7, invoice, bank statement,
or book of record that establishes that the
applicant is self-employed; and a 2020
invoice, bank statement, or book of record
to establish that the applicant was in operation
on or around Feb. 15, 2020.
If you are self-employed with employees,
your 2019 or 2020 IRS Form 1040
Schedule C whichever was used to calculate
loan amount, Form 941 or other tax
forms or equivalent payroll processor records
containing similar information and
state quarterly wage unemployment insurance
tax reporting forms from each quarter
in 2019 or 2020 whichever was used
to calculate loan amount, as applicable,
or equivalent payroll processor records,
along with evidence of any retirement
and employee group health, life, disability,
vision and dental insurance contributions,
if applicable. A payroll statement or similar
documentation from the pay period that
covered Feb. 15, 2020, must be provided
to establish the applicant was in operation
on Feb.15, 2020.
For all of these borrowers, you do not
have to include documentation of your
reduction of revenues if the loan amount
is less than $150,000, but you will have to
submit it when you apply for forgiveness.
If the loan amount is greater than
$150,000, then you will have to submit
documentation of the reduction in revenues,
which may include documentation
sufficient to establish that your business
experienced a 25% reduction in revenue,
which may include relevant tax forms
including annual tax forms, or if not
available, a copy of the quarterly income
statements or bank statements.
If you are applying for a second draw
PPP loan with the first lender that processed
your first draw loan you don’t need
to include duplicate information already
submitted.
For a second draw PPP loan you must
enter the SBA loan number of your first
draw PPP loan when you apply. SBA loan
numbers have the following format to
help borrowers identify the SBA loan number
of their first PPP loan: XXXXXXXX-XX
i.e., eight numbers followed by a dash and
then two more numbers. If you don’t have
this information, check with the lender of
your first PPP loan.
Nav matches business owners to lending
partners making these loans.
What other help is available for my
small business?
In addition to the new PPP loans, the act
authorizes the following relief:
• Another $20 billion in funding for targeted
EIDL grants and additional funding
for EIDL loans;
• Pandemic unemployment benefits
for the self-employed and independent
contractors will be extended;
• Payment relief for eligible SBA loans
will be extended. That means the SBA will
cover the payment on eligible SBA loans
— including interest, for up to a total of
$9,000 per payment — for another three
months, and up to eight months for certain
disadvantaged borrowers;
• Funding $12 billion will be available
for community development institutions
and Minority Development Institutions
which in turn will help minority and lowincome
small business owners through
a new neighborhood capital investment
program;
• Live venues, independent movie
theaters and cultural institutions may be
eligible for $15 billion in dedicated grants.
We will continue to delve into this legislation
and provide additional insights by
updating this article. v
This article originally appeared on Nav.com.
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