SBA Initial PPP Loan (First Draw)

Eligibility

An applicant is generally eligible for an Initial PPP Loan if:

  • In Operation on February 15, 2020
  • Has not previously received a PPP loan (from BitX or another Financial Institution); and
  • Has no more than 500 employees

Max Loan Amount & Term

  • 2.5X Average monthly payroll, up to $10 million ($20 million corporate group cap)
  • 5-year term

Eligible Expenses

  • Payroll Costs
  • Business rent &lease agreements
  • Business mortgage interest
  • Business utility payments
  • Covered operational expenditures
  • Covered personal protective equipment (PPE) expenses
  • Covered property damage expenses
  • Covered supplier expenditures

Loan Forgiveness

  • May be eligible for loan forgiveness if proceeds are used on payroll and other eligible business expenses:
  • Employee and compensation levers are maintained; and
  • Minimum of 60% must be used on payroll costs

Second PPP Loan (Second Draw)

Eligibility

An applicant is generally eligible for a Second PPP loan if the borrower:

  • In operation on February 15th, 2020
  • Previously received a PPP Loan (from BitX or another financial institution) and will or has used the full amount only for authorized uses buy the date of disbursement or the second PPP Loan;
  • Has no more than 300 employees combined with affiliates (unless NACIS 72, 511110 or 5151 then 300 per location; and
  • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020; or if in operations for all of 2019, you many use annual gross receipts
  • Has not nor plans to receive a Shuttered Venue grant
  • Additional eligibility requirements apply

Max Loan Amount & Term

  • 2.5X average monthly payroll, up to $2 million ($4million corporate group cap)
  • 3.5X average monthly payroll for Accommodations & Food Services loans (NAICS code 72), up to $2 million
  • 5-year term

Eligible Expenses

  • Payroll Costs
  • Business rent &lease agreements
  • Business mortgage interest
  • Business utility payments
  • Covered operational expenditures
  • Covered personal protective equipment (PPE) expenses
  • Covered property damage expenses
  • Covered supplier expenditures

Loan Forgiveness

  • May be eligible for loan forgiveness if proceeds are used on payroll and other eligible business expenses:
  • Employee and compensation levers are maintained; and
  • Minimum of 60% must be used on payroll costs

Two important notes for Second Draw applicants:

  • If you received your initial PPP loan with another lender, the SBA loan number may be on your Note or you can contact the lender to obtain it

Additional details on how to locate the SBA loan number will be coming in a separate communication.

  • Businesses also need to demonstrate a 25% reduction in gross receipts*
  • For loans above $150,000 – you must provide documentation demonstrating 25% reduction in gross receipts for loans $150,000 and greater. Such documentation may include relevant tax forms, including annual tax forms, or, if relevant tax forms are not available, quarterly financial statements or bank statements
  • For loans $150,000 and less– you must certify the 25% gross receipt reduction in the online PPP application; however, documentation will not be required until applying for loan forgiveness. When you apply for your PPP loan, you will have the option to provide documentation at that time
  • Note: the SBA’s definition of gross receipts includes: “all revenue in whatever form received or accrued (in accordance with the entity’s accounting method) from whatever source, including from the sales of products or services, interest, dividends, rents, royalties, fees, or commissions, reduced by returns and allowances.” Gross receipts must be aggregated with gross receipts of its affiliates.

What documentation do I need to supply when applying?

  • Gather your ownership information, including your Tax Identification Number and breakdown of ownership.
  • Gather documentation to establish that the business was in operation on February 15, 2020
  • Gather and Scan PDF Copies of 2019 and/or 2020 Year-to-Date payroll documents

Documentation to demonstrate the loan amount may include, but is not limited to, the following:

For Businesses with Employees (if applicable):

  • 2019 and/or* 2020 IRS Quarterly 940, 941 or 944 payroll tax reports
  • Payroll statement or similar documentation to demonstrate operations on 02/15/2020
  • For S or C Corps: Equivalent payroll processor records or IRS Wage and Tax Statements), along with the filed business tax return (IRS Form 1120 or IRS 1120-S)
  • Summary of payroll expenses for Individual Employees with salaries over $100,000
  • K-1 (IRS 1065) for Partnership Self Employed employment income
  • General Ledger Reports or statements to assist with Health Care and Retirement benefits
  • State Quarterly Wage Reporting Forms

For Sole Proprietorships and Independent Contractors (if applicable):

  • Form 1099 -MISC (Independent Contractors only)
  • Form 1040 Schedule C or F for 2019 and/or* 2020
  • Payroll tax filings
  • Payroll statement or similar documentation to demonstrate operations on 02/15/2020
  • Bank Statements to demonstrate payroll disbursements
  • General Ledger Reports or statements to assist with Health Care and Retirement benefits
  • State Quarterly Wage Reporting Forms *2020 required for Second Draw PPP Loans to demonstrate a reduction in revenue