These questions and answers are a compilation of the participant Q&A from YPTC and Network for Good’s webinar on Feb. 15, 2021.
When can I apply for the second round?
You have to have expended PPP1 funds to apply for PPP2.
What if the bank keeps telling us they do not have the forgiveness forms to us yet for the first round?
You can still apply for the Second Round as long as you have spent all PPP Round 1 funds on eligible expenses. Keep in mind that you have 10 months to apply for forgiveness, from the end of your covered period.
We completed preliminary application to US Bank for second loan which is where we received it first. It immediately said not eligible, didn’t even get to the part about showing 25% rev reduction. There is nowhere to call. Any suggestions other than trying a different lender?
In order to apply for a second draw, a borrower must certify that they have used the full loan amount of the first draw before the second draw is disbursed. Some banks are interpreting this to mean that the loan forgiveness application for the first draw must be in. Your bank may be one of those. We would recommend starting the loan forgiveness application for the first draw to see if that changes your eligibility for the second draw application.
Are there any exceptions for 502 c 3 organizations with more than 300 employees? While I understand employee ceilings are necessary – industry-specific exceptions are also essential to ensure that (slim-margin non-profits like mine) are not left behind.
If you are a public broadcasting entity with a North American Industry Classification System (NAICS) code of 511110 (newspaper publishers) or 5151 (radio and TV broadcasting) then the 300 ceiling can be applied per location.