Paycheck Protection Program Update
On Dec. 27, 2020, the president signed into law the Consolidated Appropriations Act, 2021 (H.R. 133), which expands the Paycheck Protection Program (PPP). The last day to apply for PPP loans is March 31, 2021. With limited SBA funding, we encourage you to apply as soon as you can. Please understand that submitting your application does not guarantee you the loan, as the funds allocated by the Treasury are expected to run out. The applications we receive are all subject to review according to federal and SBA guidelines.
Reminder! Apply safely for your PPP loan
The safety and security of your small business are important to us. When you're ready to submit your PPP loan application, be sure to upload your documents on Dupaco's secure site here. You can spot an unreputable lender if ever asked to provide any sensitive information through an unsecured link. If you have questions or concerns, give us a call at 800.373.7600.
What is the PPP Loan?
The SBA created this loan program to help small- and mid-sized businesses maintain cash flow during this challenging financial time. The PPP is part of The CARES Act. The Economic Aid Act gives first-time PPP borrowers additional time to apply for funding and gives previous PPP borrowers an opportunity to apply for a second round of funding.
Local credit unions (like Dupaco) and banks will write and approve the loans, which are fully backed by the SBA with support from the U.S. Department of the Treasury.
Who can apply?
Eligibility depends on whether you’re considered a first or second draw borrower. Here’s what that means:
If you didn’t receive a PPP loan before the program previously closed in August 2020, you’re considered a first draw borrower. Here’s who qualifies:
- General businesses with 500 or fewer employees that are eligible for other SBA 7(a) loans.
- Sole proprietors, independent contractors and eligible self-employed individuals.
- Any business that averages less than 500 employees per physical location that has a NAICS code starting with 72 (accommodation and food services).
- Nonprofits, including churches.
- 501 (c)(6) and destination marketing organizations with 300 or fewer employees, including chambers of commerce, economic development and tourism.
- Certain news organizations.
- Housing cooperatives.
- Schedule F farmers and ranchers.
Second draw loans are for certain eligible borrowers who previously received PPP funding. Second draw loans are intended for hardest hit borrowers with generally 300 or fewer employees. Businesses with multiple locations can’t have more than 300 employees per physical location. All eligible borrowers listed under the first draw borrowers are eligible if the following criteria are met:
- Borrower shows a 25% gross receipt decline in any quarter in 2020 compared to the same quarter in 2019. All quarterly comparisons must appear to be based on a calendar quarter (not a three-month period or fiscal quarter). Alternatively, if you were in operation in all four quarters of 2019, you can compare total annual receipts in 2020 to annual receipts in 2019 rather than doing a quarter-by-quarter comparison.
Note: Economic Injury Disaster Loan and PPP forgiveness realized in 2020 shall be excluded from gross receipts in this comparison.
- For the above 25% reduction in gross receipts test, if you weren’t in business during the first, second or third quarter of 2019 (Jan. 1–Sept. 30) but were in business during the fourth quarter of 2019 (Oct. 1–Dec. 31), you can compare the first, second or third quarter of 2020 (Jan. 1–Sept. 30) to the fourth quarter of 2019.
- If your entity was not in business during 2019 but was in business by Feb. 15, 2020, you can compare your gross receipts during the second or third quarter of 2020 (April 1–June 30) to the first quarter of 2020 (Jan. 1–March 30) to determine whether you qualify.
- You used or will use the full amount of your initial PPP loan for authorized purposes on or before the expected date of the disbursement of your second draw PPP loan.
**Important note about loans of $150,000 or less:
- For loans of $150,000 and below, you must only certify that you have met the 25% gross receipts reduction at the time of application. But upon or before seeking loan forgiveness (or upon SBA request), you must provide documentation that identifies the 2020 quarter meeting this requirement, identifies the reference quarter, states the gross receipt amounts for both quarters and supports the amounts provided.
What do I need to do?
The last day to apply for first or second draw PPP loans is March 31, 2021. Applications submitted without the following required documentation cannot be processed and will slow down your loan request.
Step 1: Download, complete and save your PPP Loan Application
First, you’ll need to figure out which type of application is right for you:
First Draw Borrower Application
Use this one if you didn’t receive a PPP loan before the previous funding round ended in August 2020.
Second Draw Borrower Application
Use this one if you received a PPP loan before the previous funding round ended in August 2020.
Step 2: Download, complete and save your PPP Loan Worksheet
Step 3: Gather and save copies of your supporting documents
Please click below to see which documents the SBA requires you to provide for your type of business.
- 941s for each quarter in 2019 or 2020 AND Payroll Register that shows YTD 2019 or 2020 payroll data such as gross wages, paid time off, vacation, state and local taxes assessed.
- Q1 941 – 2020 OR Payroll register that shows payroll amount and taxes paid that covers February 15, 2020 period.
- If applicable, documentation showing total of all health insurance premiums paid by the company owner(s) under a group health plan. Must include all employees and the company owners.
- If applicable, documentation showing the sum of all retirement plan funding that was paid by the company owner(s) (do not include funding that came from employees out of their paycheck deferrals).
- Include all employees and the company owners.
- Include 401K plans, Simple IRA, SEP IRAs.
Schedule C from their 2019 or 2020 tax return filed (or to be filed) showing income and expenses and net income/earnings from the sole proprietorship
2019 or 2020 payroll tax filings reported to the Internal Revenue Service. Individuals will also need to submit bank statements and copies of checks that show the wages paid on or around Feb. 15, 2020. If you are self-employed and do not pay wages to yourself, please apply as a Sole Proprietor and see documentation requirements under Sole Proprietorship.
Schedule C from their 2019 or 2020 tax return filed (or to be filed) as well as Form 1099-MISC from 2019 or 2020.
Can utilize Schedule F gross income instead of net income (either 2019 or 2020). First draw loans can be recalculated if new guidelines would result in a larger loan. This applies to PPP loans before, on or after the date of enactment unless the first draw loan is already forgiven.
How do I submit my application?
Please read this carefully and submit all of the requested documentation, including:
- Completed and signed PPP loan application
- Completed PPP loan worksheet
- All required supporting documentation based on your type of business
Submitting incomplete information will delay or possibly prevent funding and your ability to close on the loan. Once you have all the required materials, please use our secure site to upload your application and supporting documents. Doing so will ensure that your information is safely forwarded to the Dupaco Business Services team for processing. If you’re using a desktop computer, please use the Google Chrome or Microsoft Edge web browser to upload your documents.
After you submit your PPP loan application and supporting materials, we ask that you please be patient as we review the many applications we’re receiving. We’ll review yours and reach out to you with a status as soon as we possibly can.
Submitting your application does not guarantee you the loan, as the funds allocated by the Treasury are limited and may run out. Be assured, we’ve added staff to review and process all applications as quickly as we can, and we are working hard on your behalf.
As always, Dupaco is here to help and support you. If you’re concerned or experiencing financial hardship, please call us at 800-373-7600, ext. 0. We’re here to help you find solutions.
PPP Loan Forgiveness: Is it right for you?
If you receive a Paycheck Protection Program Loan through Dupaco, you’ll need to decide whether to repay it or apply for loan forgiveness. Learn more about the forgiveness guidelines and what to expect during that process here.
Have questions? Need help?
You may find what you are looking for by viewing one of the below resources. Otherwise, give us a call at 800-373-7600.