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The New PPPLearn About Eligibility and How to Get Funded
Here at Business GPS we are here to navigate your company through complex situations and
provide solutions vital to success.
Our CompanyGuidance. Performance. Success.
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Let’s Figure Out Who is In the Room
1. What is your expected topline revenue this year 2020?2. Do you expect to apply for the New PPP?
What is the New PPP?
After stalled negotiations Congress and the President have signed the Stimulus Bill, which includes Round 2 of the PPP. Though not finalized the SBA will be issuing guidelines in the coming weeks.
Round 2 speculations:● First and second time applicants will be eligible.● Must have fewer than 300 employees.● Sustained a revenue loss of at least 25% during any quarter in 2020 compared to the same
quarter in 2019.● Second-time applicants must have used or will use the full amount of their first PPP loan.
The Benefits
● Most eligible businesses may receive loan 2.5 times average monthly payroll expenses.● Restaurants and lodging businesses may now apply for loans equal to 3.5 times.● Payroll expenses are largely paid for by the PPP loan.● Forgiveness for small businesses if they spend at least 60% of their PPP second draw loan on
payroll costs during the covered period.● The latest Covid relief package clarifies that if the loan is forgiven, it will be treated as tax free
to the business.● No Credit check, and no personal guarantees.● Normal SBA collateral requirements are waived.● PPP loan borrowers to choose two covered periods, an eight-week covered period or a
24-week covered period, in which to spend the loan proceeds.● Specific amounts are earmarked for community development financial institutions -- which
typically lend to minority-owned businesses in underserved communities -- and also for businesses with fewer than 10 employees, as well as those in low-income areas.
The Criteria to Be Funded
Small business and many independent contractors will be eligible, even if you received funds in the first round.• Small businesses, nonprofit organizations, veterans organizations, Tribal business concerns, and small
agricultural cooperatives that meet SBA Guidelines.• Sole proprietors, self employed individuals or independent contractors.• Certain news organizations, destination marketing organizations, housing cooperatives, and 501(c)(6)
nonprofits may now also be eligible.
PPP Round 2 targets small businesses impacted by COVID-19. Applicants who qualify must also meet the following criteria
1. The business may not have more than 300 employees.2. The business must have at least a 25% reduction in revenues in at least one quarter in 2020 when
compared to previous quarters.
Any business that received Round 1 PPP loan must have used, or plan to use, their full PPP loan disbursed.
The Process
Businesses pursuing Round 2 of the PPP should be proactive in gathering financial data. Once confirmed implementation will be quick and funds will be limited. You do not need to use same bank/lender as with previous PPP.
Let us help you reserve your place in line NOW
Steps in Process *(Steps 3-6 done by bank/lender)
1. RESERVE A PLACE IN LINE2. Submit all required paperwork3. Process your completed application4. Submit your application through E-Tran5. SBA reserves your funds and assigned an approval # (PLP)6. Send you closing documents and use the PLP to complete loan
process
How Fast Can I Be Funded?
These fund will run out, and are on a first-come, first-serve basis, so ensure to get your place in line so we may get your application submitted and approved before the SBA opens back up for Funding
● New bill gives the SBA Administrator 10 days to establish regulations
● PPP Applications can be processed and funded typically within 72 hours
● Ability to use eligible expenses over an 8 week period, or a 24 week period
Additional Programs
What other help is available to me?
● Another $20 billion in new EIDL grants.● Payment relief for eligible SBA loans will be extended. ● The SBA will cover the payment on eligible SBA loans—including interest, (up to a total of $9000
per payment) for the next 3-8 months, pending on the borrower’s industry code and the type of loan.
● $12 billion in funding will be available for Community Development Institutions and Minority Development Institutions which will help minority and low-income 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.
The #1 Issue: Inadequate Financial Controls
• Payroll Reports - from 3rd party payroll provider is the best; 941 quarterly reports
• Confusing Number Story in the Financials – monthly financials that show decline
• Audit Ready - save all the documentations including your decision making bases in a “view” only folder to be ready for forgiveness; this includes payroll reports, bank statements, financials, emails, etc.
Common Hurdles
We Work on Contingency
Unlike other Lenders we work on Contingency. Meaning we will not collect any fees from you until you are approved!
Let us get you in line NOW for PPP Round 2!• No hourly rates• No retainers• No large up-front costs or escrow accounts• Contingency Based Solutions
• You get results before Business GPS gets paid!
Decide If You Want to Get Funded
PPP Round 2 is intended to keep employees (including the business owner or independent contractor) on payroll and to pay other specific expenses.
PPP Round 2 may be entirely forgiven if spent for the proper purposes.● Borrowers will need to spend at least 60% of loan proceeds
funding on payroll. ● Borrowers may spend up to 40% on other qualified expenses:
○ Rent ○ Mortgage interest○ Utilities○ Covered operations expenditure○ Covered property damage cost○ Covered supplier cost○ Covered worker protection expenditure
Joseph Meuse, CEO
540-878-4942
businessgpsllc.com
ReferencesNorth River Outfitters - Jason Indelicato - [email protected]
Style Up America - Neil Miller - (310) 600-0323
Romulus Marketing – Brandon Vallorani – (678) 956-0616
Call Me to Get Funding
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Kirk. W. McLaren, MBA, CPA, IFMChief Executive Officer
Georgetown University [email protected]
202.262.1231
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