SBA PPP Application Information & Help

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.

 
First Draw
Second Draw
Eligibility Requirements
First Draw
  • Business must be in operation as of February 15, 2020.
  • Generally, businesses with 500 or fewer employees are eligible.
  • There is no revenue reduction requirement for 1st Draw PPP borrowers.
Second Draw
  • Generally, 300 or fewer employees.
  • Experienced a revenue reduction of 25% or greater in 2020 relative to 2019.
  • Used (or will use) the full amount of your 1st draw on eligible expenses before receiving the 2nd draw.
Maximum Loan Amount
First Draw
The maximum loan amount for a 1st Draw PPP loans is the lesser of $10 million or 2.5x average monthly payroll.
Second Draw
The maximum loan amount for a 2nd Draw PPP loan is the lesser of $2 million or 2.5x average monthly payroll. Accommodation and Food Services businesses (with a NAICS Code beginning with 72) may borrow up to 3.5x average monthly payroll.
What documentation do I need? See the documentation guide.
How do I calculate "25% gross receipts reduction"? See the calculation guide.
What time frame should I use to calculate payroll costs?
If not a self-employed individual, sole proprietorship, or an independent contractor, you may choose to use the preceding 12-month period calculate payroll costs.
If not a self-employed individual, sole proprietorship, or an independent contractor, you may choose to use the preceding 12-month period calculate payroll costs.
Ready to Apply for your SBA PPP Loan 2021?

NEED HELP? Schedule an Appointment.

Required Documentation Guide

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.

General Concepts

  • To calculate annual payroll costs, businesses may use either the Calendar Year 2019 or 2020. Additionally, if not a self-employed individual, sole proprietorship, or an independent contractor, businesses may choose to use the precise preceding 12-month period to calculate payroll costs.
  • Maximum loan amount:
    • First Draw PPP Loans: Lesser of $10 million or 2.5 x average monthly payroll
    • Second Draw PPP Loans: Lesser of $2 million or 2.5 x average monthly payroll (Exception: Accommodation and Food Services businesses (with a NAICS Code beginning with 72) may borrow up to 3.5 x average monthly payroll)
    • Independent contractors do not count as employees for purposes of a borrower's PPP loan calculation

What information will I need to compete my application?

  • 2019 or 2020 IRS Form 1040 Schedule C
  • 2019 or 2020 IRS Form 1099- Misc detailing non-employee compensation received (box 7), invoice, bank statement, or book of record establishing you are self-employed.
  • 2020 invoice, bank statement, or book of record establishing you were in operation on February 15, 2020
  • 2019 or 2020 IRS Form 1040 Schedule C
  • 2019 or 2020 IRS Form 941**
  • State quarterly wage unemployment insurance tax reporting form from each quarter in 2019 or 2020 (or equivalent payroll processor records or IRS Wage and Tax Statements)
  • If applicable, documentation of any retirement or health insurance contributions***
  • A payroll statement or similar documentation from the pay period that covered February 15, 2020 must be provided to establish you were in operation and had employees on that date
  • 2019 or 2020 IRS Form 1065 (including K-1s)
  • 2020 invoice, bank statement, or book of record establishing the partnership was in operation on February 15, 2020
  • 2019 IRS Form 1065 (including K- 1s)
  • 2019 IRS Form 941** and state quarterly wage unemployment insurance tax reporting form from each quarter (or equivalent payroll processor records or IRS Wage and Tax Statements)
  • If applicable, documentation of any retirement or health insurance contributions**
  • A payroll statement or similar documentation from the pay period that covered February 15, 2020 must be provided to establish you were in operation and had employees on that date
  • 2019 or 2020 IRS Form 941** and state quarterly wage unemployment insurance tax reporting form from each quarter (or equivalent payroll processor records or IRS Wage and Tax Statements)
  • 2019 or 2020 Filed business tax returns (IRS Form 1120 or IRS Form 1120-S)
  • If applicable, documentation of any retirement or health insurance contributions***
  • A payroll statement or similar documentation from the pay period that covered February 15, 2020 must be provided to establish you were in operation and had employees on that date
  • Documents that apply to your tax filing situation, for example, filing as a sole proprietor, partnership or corporation
  • 2019 or 2020 IRS Form 941** and state quarterly wage unemployment insurance tax reporting form from each quarter (or equivalent payroll processor records or IRS Wage and Tax Statements)
  • 2019 or 2020 IRS Form 990 IX
  • If applicable, documentation of any retirement or health insurance contributions***
  • A payroll statement or similar documentation from the pay period that covered February 15, 2020 must be provided to establish you were in operation and had employees on that date
  • 2019 or 2020 IRS Form 941** and state quarterly wage unemployment insurance tax reporting form from each quarter (or equivalent payroll processor records or IRS Wage and Tax Statements)
  • If applicable, documentation of any retirement or health insurance contributions***
  • A payroll statement or similar documentation from the pay period that covered February 15, 2020 must be provided to establish you were in operation and had employees on that date
  • 2019 or 2020 IRS Form 1040 Schedule 1 and Schedule F
  • 2019 or 2020 IRS Form 1099- MISC detailing non-employee compensation received (box 7), invoice, bank statement, or book of record establishing you are self-employed.
  • 2020 invoice, bank statement, or book of record establishing you were in operation on February 15, 2020
  • 2019 or 2020 IRS Form 1040 Schedule 1 and Schedule F
  • 2019 or 2020 IRS Form 941**
  • State quarterly wage unemployment insurance tax reporting form from each quarter in 2019 or 2020 (or equivalent payroll processor records or IRS Wage and Tax Statements)
  • If applicable, documentation of any retirement or health insurance contributions**
  • A payroll statement or similar documentation from the pay period that covered February 15, 2020 must be provided to establish you were in operation and had employees on that date

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.

Ready to Apply for your SBA PPP Loan 2021?

NEED HELP? Schedule an Appointment.

25% Reduction Calculation Guide

What you will need to demonstrate for revenue reduction (second draw borrowers only).
There are different ways to measure the 25% revenue reduction depending on your business activity in 2019 and 2020. Choose the scenario that best describes your situation and determine how you can demonstrate the reduction in revenue.

Choose the selection below that best describes your business.

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.

OR

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.

If your business was not in business during the first or second quarter of 2019, but was in business during the third and fourth quarters of 2019, the applicant had gross receipts during the first, second, third, or fourth quarter of 2020 that demonstrate at least a 25% reduction from the applicant's gross receipts during the third or fourth quarter of 2019. Example: Ex/ An applicant that had gross receipts of $50,000 in the third quarter of 2019 and had gross receipts of $30,000 in the third quarter of 2020 - demonstrating a reduction of 40% from the applicant's gross receipts during the third quarter in 2019.
If the applicant was not in business during the first, second, or third quarter of 2019, but was in business during the fourth quarter of 2019, the applicant had gross receipts during the first, second, third, or fourth quarter of 2020 that demonstrate at least a 25% reduction from the fourth quarter of 2019. Example: an applicant that had gross receipts of $50,000 in the fourth quarter of 2019 and had gross receipts of $30,000 in the fourth quarter of 2020 - demonstrating a reduction of 40% from the applicant's gross receipts during the fourth quarter in 2019.
If the applicant was not in business during 2019, but was in operation on February 15, 2020, the applicant had gross receipts during the second, third, or fourth quarter of 2020 that demonstrate at least a 25% reduction from the gross receipts of the entity during the first quarter of 2020 Example: an applicant that had gross receipts of $50,000 in the first quarter of 2020 and had gross receipts of $30,000 in the fourth quarter of 2020 - demonstrating a reduction of 40% from the applicant's gross receipts during the first quarter in 2020.
Ready to Apply for your SBA PPP Loan 2021?

NEED HELP? Schedule an Appointment.

Need Help? Make an Appointment

or email your questions to smallbusiness@mvbank.com

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