employ not more than 300 employees and.the cost of the lobbying activities did not exceed $1 million during the most recent tax year that ended prior to Febru.the lobbying activities do not comprise more than 15% of the total activities of the organization.Destination marketing organizations that:.the cost of the lobbying activities did not exceed $1 million during the most recent tax year that ended prior to Februand.the lobbying activities of the organization do not comprise more than 15% of the total activities of the organization.

do not receive more than 15% of its receipts from lobbying activities.

Housing cooperatives with not more than 300 employees.

Tribal business concerns with not more than 500 employees.

Veterans organizations with not more than 500 employees.

Nonprofit organizations with not more than 500 employees.

Independent contractors, eligible self-employed individuals, and sole proprietors.

Business concerns with not more than 500 employees or, if applicable, the size standard in number of employees established by SBA.

Small business concerns qualified under the applicable revenue-based size standard established by SBA for the borrower’s industry or under SBA alternative size standard.

Type and Size Requirements for Eligible Borrowers.

The primary terms of the First Draw PPP Loans are as follows: Eligible Borrowers In addition to business concerns previously eligible for PPP loans, and subject to certain size standards, eligibility criteria, and additional restrictions described below, housing cooperatives, eligible section 501(c)(6) organizations, eligible destination marketing organizations, and news organizations are now eligible to apply for a First Draw PPP Loan. If the applicant was in operation in all four quarters of 2019, a reduction in annual receipts of 25% or greater in 2020 compared to 2019.Ĭalculation of Loan Amount – Payroll Period(s)Įither (i) the 12-month period prior to when the loan was made or (ii) the calendar year 2019Įligible applicants that did not receive a PPP loan prior to August 8, 2020, may apply for a First Draw PPP Loan on or before March 31, 2021. Up to 500 employees or alternative SBA size standard for number of employees based upon NAICS codeĪt least 25% reduction in revenue, calculated by comparing the applicant’s quarterly gross receipts for one quarter in 2020 with the applicant’s gross receipts for the corresponding quarter of 2019.

The key differences between First Draw PPP Loans and Second Draw PPP Loans are as follows:Įligibility – Maximum Number of Employees (subject to exceptions outlined below) Key Differences Between First Draw and Second Draw PPP Loans Interim Final Rule 2021-0002 (IFR 2) details the terms of second draw PPP Loans (Second Draw PPP Loans).

Interim Final Rule 2021-0001 (IFR 1) details the amended terms of the PPP pursuant to the EAA and governs new first draw PPP loans made under the EAA (First Draw PPP Loans), as well as loan forgiveness applications for existing PPP loans where the loan forgiveness payment has not been remitted (Existing PPP Loans). SBA released initial guidance for the reauthorized PPP on January 5, 2021, in the form of two new Interim Final Rules. Title III of Division N of the CAA, entitled Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (EAA), allocates an additional $284 billion to a reauthorized and revised the PPP. The CAA was signed into law on December 27, 2020. The PPP, implemented by section 1102 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, expanded the Small Business Administration (SBA) 7(a) loan program to provide up to $349 billion-increased by an additional $310 billion on April 24, 2020-in 100% federally-guaranteed loans to small employers and eligible self-employed individuals impacted by COVID-19. On Monday, December 21, 2020, Congress passed the Consolidated Appropriations Act, 2021 (CAA), which contains a $900 billion COVID-19 relief package that, among many other initiatives, reauthorizes and modifies the Paycheck Protection Program (PPP). Employee Benefits & Executive Compensation (ERISA)Īs companies of all types and sizes continue to deal with the potential legal implications of the COVID-19 pandemic for their businesses, Jackson Walker provides insights and resources on the COVID-19 Legal Resources & Insights site.Cybersecurity, Data Protection, & Privacy.

Ppp gross receipts test