Qvinci® Software has released its timesaving PPP2 Report, allowing users to learn their eligibility for the second round of the Paycheck Protection Program Loan with a simple ‘click’.
Although the ink is barely dry on the Consolidated Appropriations Act, 2021 (the “CAA”), signed into law on December 27, 2020, Qvinci has already provided its clients and the market with relevant reporting to make their lives much easier. Among other things, the CAA provides $284 billion for small businesses through a second round of Paycheck Protection Program (“PPP”) forgivable loans, referred to by some as the PPP2.
For purposes of the new Qvinci Report, The CAA allows small businesses to apply for a loan of up to $2 million. To be eligible, the borrower must:
- have 300 or fewer employees
- have suffered a 25% or higher reduction in gross receipts during any calendar quarter in 2020 compared to the same quarter in 2019
- have used, or will use, the full amount of their first PPP loan
Qvinci created its new report solely for its users to easily determine whether their clients, franchisees, dioceses, churches, schools, or other business units meet the 25% or higher reduction in gross receipts (income) test.
SBA size standards still apply, and applicants must aggregate applicable affiliates when determining if it qualifies as a “small business.” The CAA also affirms eligibility to certain entities such as churches and other religious organizations with fewer than 300 employees, certain news outlets, but also disqualifies particular establishments.
Please stay tuned for the publication of the SBA’s second draw application form and the reopening of the PPP loan program. As Qvinci understands it presently, the CAA provides that the loans will be funded through March 31, 2021, and applications will continue to be made through qualified lenders. It is also Qvinci’s understanding that borrowers will have to make similar, if not identical, certifications when applying. Everyone should consult with their attorneys, tax advisors, and lenders to determine if they qualify for a forgivable PPP or PPP2 loan.
TO FAMILIARIZE YOURSELF with Qvinci’s new PPP2 Report, watch this video.