Certain supplier costs and expenses for operation.Uninsured property damage costs caused by looting or vandalism during 2020.Worker protection costs related to COVID-19.Second PPP Loans can be used to help fund : Round 2 of the PPP loans expanded the allowable expenses that can be paid with proceeds.
#Ppp gross receipts test code#
"Gross receipts of a borrower must be aggregated with gross receipts of its affiliates.įor a nonprofit organization, veterans organization, nonprofit news organization, 501(c)(6) organization, and destination marketing organization, gross receipts has the meaning in section 6033 of the Internal Revenue Code of 1986." "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.
Proceeds from transactions between a concern and its domestic or foreign affiliates.Taxes collected for and remitted to a taxing authority if included in gross or total income, such as sales or other taxes collected from customers and excluding taxes levied on the concern or its employees.Gross receipts do not include the following: Losses as these terms are defined and reported on IRS tax return forms."
#Ppp gross receipts test plus#
"Generally, receipts are considered “total income” (or in the case of a sole proprietorship “gross income”) plus “cost of goods sold” and excludes net capital gains or Not included in Gross Receipts are the following: " Gross receipts include all revenue in whatever form received or accrued ( in accordance with the entity’s accounting method 1) from whatever source: Please note: Gross receipts do not include any prior loan proceeds or PPP forgiveness income (including previous PPP loan funds.)
#Ppp gross receipts test full#
Special rules apply to entities not in business for the full 2019 calendar year.For all entities other than those satisfying the conditions set forth below, Applicants must demonstrate that gross receipts in any quarter of 2020 wereĪt least 25% lower than the same quarter of 2019.Īlternatively, Applicants may compare annual gross receipts in 2020 with annual gross receipts inĢ019 Applicants choosing to use annual gross receipts must enter “Annual” in the 2020 Quarter and Reference Quarter fields and, as requiredĭocumentation, must submit copies of annual tax forms substantiating the annual gross receipts reduction."For all loans, the appropriate reference quarter depends on how long the Applicant has been in operation: Receipts reduction at the time of application however, upon or before seeking loan forgiveness (or upon SBA request) the Applicant must provideĭocumentation that identifies the 2020 quarter meeting this requirement, identifies the reference quarter, states the gross receipts amounts for both quarters, Quarter meeting this requirement, identify the reference quarter, and state the gross receipts amounts for both quarters, as well as provide supportingįor loans of $150,000 and below, these fields are not required and the Applicant only must certify that the Applicant has met the 25% gross "I n determining whether the Applicant experienced at least a 25% reduction in gross receipts, for loans above $150,000, the Applicant must identify the 2020 Can demonstrate at least a 25% reduction in gross receipts* between comparable quarters in 20 (You must meet this test for at least one quarter to qualify.).Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses."įor most borrowers, the maximum loan amount of a Second Draw PPP Loan is 2.5x average monthly 2019 or 2020 payroll costs up to $2 million.įor borrowers in the Accommodation and Food Services sector (use NAICS 72 to confirm), the maximum loan amount for a Second Draw PPP Loan is 3.5x average monthly 2019 or 2020 payroll costs up to $2 million.Ī borrower is generally eligible for a Second Draw PPP Loan if the borrower: "The Paycheck Protection Program (PPP) now allows certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP Loan with the same general loan terms as their First Draw PPP Loan.
0 kommentar(er)
