Eligibility, 25% gross receipts reduction calculation, and required documentation.
NOTE: It is important that you familiarize yourself with the application process. Before clicking one of the "Apply Now" links or buttons, please read this page in its entirety. If you are returning to this page and have already read through it, then you may APPLY NOW.
If you need help, please feel free to Schedule an Appointment.
This information was gathered from the Interim Final Rule of Paycheck Protection Program as Amended by Economic Aid Act (1/6/2021) and Interim Final Rule on Second Draw Loan (1/6/2021). This is a guide for businesses and does not release the borrower of their obligation to know and abide by Interim Final Rules, guidance or law governing the Paycheck Protection Program.
A seasonal employer (an employer that does not operate for more than 7 months in any calendar year or that during the preceding calendar year, had gross receipts for any 6 months of that year that were not more than 33.33 percent of the gross receipts of the employer for the other 6 months of that year) must determine its maximum loan amount by using the employer's average total monthly payments for payroll for any 12-week period selected by the seasonal employer beginning February 15, 2019, and ending February 15, 2020.
A fishing boat owner may include compensation reported on Box 5 of IRS Form 1099-MISC and paid to a crewmember described in section 3121(b)(20) of the Code, up to $100,000 on an annualized basis, as prorated for the period during which the payments are made or the obligation to make the payments is incurred, as a payroll cost in its PPP loan application.
* Applicable EIDL = Any Economic Injury Disaster Loan (EIDL) made between January 31, 2020 and April 3, 2020 that you seek to refinance. Do not include the amount of any advance under an EIDL COVID-19 loan (because it does not have to be repaid).
**IRS Form W-2s and IRS Form W-3 or payroll processor reports, including quarterly and annual tax returns, can be used in place of IRS Form 941. Very small businesses that file an annual IRS Form 944 instead of quarterly IRS Form 941 should provide IRS Form 944.
***Records from a retirement administrator can be used to document employer retirement contributions while records from a health insurance company or third-party administrator for a self-insured plan can document employer health insurance contributions.
Your business had gross receipts during the first, second, third, or fourth quarter in 2020 that demonstrate at least a 25% reduction from the applicant's gross receipts during the same quarter in 2019. Example: An applicant that had gross receipts of $50,000 in the second quarter of 2019 and had gross receipts of $30,000 in the second quarter of 2020 experienced a 40% revenue reduction between these two quarters.
Your business was in operation in all four quarters of 2019 is deemed to have experienced the revenue reduction if it experienced a reduction in annual receipts of 25% or greater in 2020 compared to 2019 and the borrower submits copies of its annual tax forms substantiating the revenue decline. Example: An applicant that had annual gross receipts of $1,000,000 in 2019 and had gross receipts of $700,000 in 2020 experienced a 30% revenue reduction between the two years.
Martha's Vineyard Bank is proud to announce the hiring of John Smith. Bill brings to the table...