The following includes all the information released by the SBA on the second round of PPP loans. As new information becomes available, the following information may change.

(Note that we will continue to update this FAQ as updated program details are released by the SBA)

What are the required criteria for second draw PPP loan?

• Qualifying businesses (except those under NAICS code 72) must have fewer than 300 employees. Businesses classified under NAICS code 72 must have fewer than 300 employees per location.
• Loan amount is the lesser of either the business’s average monthly payroll multiplied by 2.5, or $2,000,000. However, hotels and restaurants (NAICS code 72) will be eligible to receive 3.5x instead.
• Businesses that sustained a loss of revenue of 25% or greater in any corresponding quarter between 2019 and 2020 (i.e. Q2 2019 vs. Q2 2020), or in the calendar year 2019 compared to calendar year 2020.
• The combination of first and second PPP loan amounts cannot exceed $10,000,000.

If I received my first PPP loan from Sunwest and I am applying for a second PPP loan, what information do I need to provide?

• If the first PPP loan used calendar year 2019 payroll information to calculate the loan amount and the same payroll information is used for the second PPP loan, no additional payroll information is necessary. Please simply log into the Sunwest Bank PPP customer portal and indicate your interest.
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• If something other than calendar year 2019 payroll was used for the first loan, or if you wish to use calendar year 2020 payroll information for the second application, the online application will need to be completed using the corresponding documentation
• All applicants will need to provide financial statements to verify the quarterly or annual 25% decline in revenue. The most efficient document to provide is your 2019 and 2020 quarterly financial statements, however if the annual revenue declined by more than 25%, the applicant can provide their year-end financial statements for 2019 and 2020.

What expenses can be forgiven in this new round of funding?

• The following are expenses listed below can now be forgiven. Note that this is in addition to the original forgivable expenses such as rent, payroll, utilities, and interest on debt.
• Operation expenditures – business software, payroll software, HR, Billing functions, accounting, tracking of inventory
• Property damage – vandalism or looting that is not covered by insurance (during 2020 only)
• Supplier costs – PO’s, perishable goods, or inventory
• Worker Protection – PPE, screens, cough guards, or any structure made to be in compliance with new health codes from CDC or DHHS

If I received my first PPP loan from another bank and I am applying for a second PPP loan through Sunwest, what information do I need to provide?

• You must fill out the online loan application and provide the necessary payroll information and documentation (this can be the same documentation provided to the original banking institution). If you would like to use 2020 payroll information, please provide us an updated calculation.
• All applicants will need to provide financial statements to verify the quarterly or annual 25% decline in revenue. The most efficient documents to provide are the 2019 and 2020 quarterly financial statements, however if the applicant’s annual revenue declined by more than 25%, they show this decline with their year-end financial statements for 2019 and 2020.
• Applicants will be required to open a Sunwest CARES Account.
• Applicants will be required to provide all necessary entity documentation

How has the SBA streamlined the process?

People with loans of $150,000 or less will be allowed to use a simple once page loan forgiveness application. This application required borrowers to submit the loan amount, the amount spent on payroll, and the number of employees they were able to retain.

Is there support for non-profits?

501(c)(6) organizations that are not lobbying organizations such as chambers of commerce, trade associations, and boards of trade are now eligible if they have fewer than 150 employees.

Are there any enhancements to SBA loans?

Certain part of the new relief bill apply to other types of SBA loans. They include the following:

• Extension of Sec. 1112 of the CARES Act allowed the SBA to pay principal and interest for new and existing 504 and 7(a) loans. That is now extended through March 31.
• Loan guarantee for 7(a) loans increases to 90% and loan amounts increase up to $10,000,000

Is there an elimination of PPP advance deduction?

The EIDL amount no longer must be subtracted from the PPP loan amount when applying for forgiveness.

What is the tax deductibility of my PPP loan?

Reversing a controversial IRS rule about prior PPP loans, expenses paid for with forgiven PPP loan proceeds are now fully tax deductible. This applies to both first and second draw PPP loans.