Paycheck Protection Program (PPP) Round II is here! $422 billion has been allocated for impacted businesses and the program has been extended to March 31, 2021.
Here’s what you’ll need to be eligible for a PPP loan in the new round:
- Demonstrate at least a 25% reduction in gross receipts (to be defined by SBA) in any quarter of 2020 relative to the same quarter in 2019.
- For simplicity, businesses can now use annual tax returns for 2019 and 2020 to substantiate the 25% revenue reduction.
- Businesses can also compare any quarter in 2019 with the comparable quarter in 2020 which can be substantiated with quarterly financial statements
- Employ fewer than 300 employees
What clients are saying about Capital Source Group...
"Capital Source Group was great to work with! They responded quickly and moved with certainty to get the deal closed for my client that had a tight deadline."
-Deborah S., CPA
"Very easy company to deal with, happy with what they've been able to do for me."
-Ira P, Marketing Agency
"Capital Source Group provided my company with a stellar borrowing experience. They were quick, responsive and on top of it every step of the way. The deal closed quickly and smoothly. I will definitely keep working with this group! Thanks!"
-Jeffrey S., Engineering Contractor
Frequently Asked Questions
I already received one PPP loan. Can I apply for a second loan?
Yes, borrowers that previously received a PPP loan can apply for a second loan if they meet certain eligibility criteria. For example, borrowers applying for a second PPP loan must have 300 or few employees. For companies applying for a second PPP loan, the maximum loan amount is $2 million. Businesses applying for a second PPP loan will have to demonstrate at least a 25 percent reduction in revenue between corresponding quarters in 2019 and 2020.
What can PPP loan funds be used for?
- Payroll costs, including compensation, employee benefits, and employer-paid taxes
- Rent or lease payments
- Mortgage interest payments
- Utilities
- Personal protective equipment (PPE) and facilities updates to operate safely during the COVID-19 pandemic
- Software or cloud computing costs for business operations
- Costs related to property damage and vandalism or looting due to public disturbances not covered by insurance or other compensation
- Costs of the supply of goods that are essential to business operations
- Covered worker protection expenditures that help adapt business activities to COVID safety requirements
Who was this program designed for?
Businesses applying for their first PPP loan must have 500 employees or fewer to be eligible. Previous PPP loan recipients with less than 300 employees can also qualify if they have more than a 25% drop in revenue quarter over quarter from the previous year. If you are applying for your second PPP loan, you will need to have used the full amount of funds from your first PPP loan before your second is disbursed.
How much can I borrow?
Eligible businesses will be able to apply for PPP loans from $10,000 up to $2 million. Our streamlined process will even help you calculate the allowable loan amount for your business based on your payroll information.
What documents do I need to begin to gather?
- 2019 Tax Return and Employment Tax Form
-S Corporation: Form 1120S and Form 941 (4 quarters)
-C Corporation: Form 1120 and Form 941 (4 quarters)
-LLC / Partnership: Form 1065 and Form 941 (4 quarters)
-Sole Proprietor or Independent Contractor: Form 1050 Schedule C
-Non-profit: Form 990 and Form 941 (4 quarters) or 944 - Voided Check
- Driver's License or Other Form of Identification
- 2019 and 2020 Financials (Income Statement) or 2019/2020 business bank statements