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Paycheck Protection Program (PPP): Second Draw Loans

Taylor Bank is committed to helping our business customers navigate through these uncertain times.

We are proud to have assisted 546 local businesses last spring, with more than $33 million in relief funding through the Paycheck Protection Program, and we are readying our teams to begin again.

Whether you're applying for a PPP Loan for the first or second time, we are here to answer your questions and guide you through the application process.

If you are an existing customer and applying for a second round of PPP funding, please continue reading. If you are an existing customer and are applying for your first PPP loan, please click here to visit our First Draw Loans page.

2nd Time PPP Borrowers

Are you eligible?

  • Received any amount of PPP related funds from Taylor Bank or any financial institution during round 1 of Paycheck Protection Period and will use the full amount only for authorized uses.
  • Has no more than 300 employees
  • Can demonstrate at least 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

Qualified Expenditures

  • If you want your PPP loan to be forgiven, the proceeds must be used on certain eligible expenses pertaining to your business:
  • Covered Operations Expenditures:
    • Includes payroll, rent, mortgage interest, and utilities.
    • Includes payments for business software or cloud computing services that facilities business operations, product or service delivery, processing payment, tracking of payroll expenses, HR and billing functions, or account or tracking of supplies, inventory, records, or expenses.
  • Covered Property Damage Costs:
    • Includes costs related to property damaged, vandalized, or looted due to the public disturbances that occurred during the 2020 year that was not covered by insurance or other compensation.
  • Covered Supplier Costs
    • Includes expenditures to a supplier of goods that are essential to the operations of the business at the time at which the expenditure was made.
  • Covered Worker Protection Expenditures:
    • Includes operating or capital expenditures that allow a business to comply with requirements issued by the CDC, HHS, OSHA, or any state/local government during period beginning March 1st, 2020 and ending on the date on which the national emergency declared by the President under the National Emergencies Act with respect to the COVID-19 disease expires.
    • This may include the purchase, maintenance, or renovation of assets that create or expand:
  1. A drive-through window facility
  2. An indoor, outdoor, or combined air or air pressure ventilation or filtration system;
  3. A physical barrier such as a sneeze guard;
  4. An expansion of additional indoor, outdoor, or combined business space;
  5. an onsite or offsite health screening capability; or
  6. other assets relating to the compliance with the requirements or guidance described in subparagraph (A), as determined by the Administrator in consultation with the Secretary of Health and Human Services and the Secretary of Labor; the purchase of—
    1. covered materials described in section 328.103(a) of title 44, Code 16 of Federal Regulations, or any successor regulation
    2. particulate filtering face piece respirators approved by the National Institute for Occupational Safety and Health, including those approved only for emergency use authorization; or
    3. other kinds of personal protective equipment, as determined by the Administrator in consultation  with the Secretary of Health and Human Services and the Secretary of Labor
    4. Does not include residential real property or intangible property

How to Calculate your Maximum Loan Amount

  • In order to compute your maximum loan amount you can receive, you must first calculate your “Average Monthly Payroll” costs.
    • Use the average monthly payroll for either 2019 or 2020, excluding any amount above $100,000.
      • For Seasonal Businesses: you can elect to use the average total monthly payroll for any 12-week period selected by you during February 15th, 2019 to February 15th, 2020 up to $100,000.
      • For New Businesses: average monthly payroll may be calculated using the time period from January 1st, 2020 to February 29th, 2020 up to $100,000.
  • Step 1: Calculation of Average Monthly Payroll Expenses depends on the type of business you operate:
    • Sole Proprietorship w/ No Employees: Use the lesser your 2019 or 2020 IRS Form 1040 Schedule C Line 31 net profit amount or $100,000
      • If this amount is zero or less, than you are not eligible for a PPP loan.
    • Sole Proprietorship w/ Employees: Add the following items
      • The lesser of 2019 or 2020 IRS Form 1040 Schedule C Line 31 net profit amount or $100,000
      • Form 941 Taxable Medicare wages & tips (line 5c-column 1) from each quarter plus any pre-tax employee contributions for health insurance or other fringe benefits excluded from Taxable Medicare wages & tips, subtracting any amount paid to any individual employee in excess of $100,000 and any amounts paid to any employee whose principal place of residence is outside the U.S;
      • 2019 or 2020 employer contributions for employee health insurance (Schedule C Line 14)
      • 2019 or 2020 Employer contributions to retirement plans (Schedule C Line 19)
      • 2019 or 2020 employer state and local taxes assessed on employee compensation
    • Self-Employed Individual who reports Income on Schedule F: The lesser of IRS Form 1040 Schedule F Line 34 (net farm profit) or $100,000
    • Partnerships: Add the following items
      • 2019 or 2020 Schedule K-1 (IRS Form 1065) Net earnings from self-employment of individual U.S based general partners that are subject to self-employment tax, computed from box 14a (reduced by any section 179 expense deduction claimed, unreimbursed partnership expenses claimed, and depletion claimed on oil and gas properties) multiplied by 0.9235,2 up to $100,000 per partner
      • 2019 or 2020 gross wages and tips paid to your employees whose principal place of residence is in the United States, if any, which can be computed using 2019 IRS Form 941 Taxable Medicare wages & tips (line 5c-column 1) from each quarter plus any pre-tax employee contributions for health insurance or other fringe benefits excluded from Taxable Medicare wages & tips, subtracting any amounts paid to any individual employee in excess of $100,000 and any amounts paid to any employee whose principal place of residence is outside the U.S
      • 2019 or 2020 employer contributions for employee health insurance,  (Form 1065 line 19)
      • 2019 or 2020 employer contributions to employee retirement plans (Form 1065 line 18)
      • 2019 or 2020 employer state and local taxes assessed on employee compensation
    • S-Corporations and C-Corporations: Add the following items
      • 2019 or 2020 gross wages and tips paid to your employees whose principal place of residence is in the United States, which can be computed using 2019 IRS Form 941 Taxable Medicare wages & tips (line 5c-column 1) from each quarter plus any pre-tax employee contributions for health insurance or other fringe benefits excluded from Taxable Medicare wages & tips, subtracting any amounts paid to any individual employee in excess of $100,000 and any amounts paid to any employee whose principal place of residence is outside the U.S;
      • 2019 or 2020 employer health insurance contributions (Form 1120 line 24 or Form 1120-S line 17);
      • 2019 or 2020 employer retirement contributions (Form 1120 line 23 or Form 1120-S line 17);
      • 2019 or 2020 employer state and local taxes assessed on employee compensation.
    • Nonprofit Organizations: Add the following items
      • 2019 or 2020 gross wages and tips paid to your employees whose principal place of residence is in the United States, which can be computed using 2019 IRS Form 941 Taxable Medicare wages & tips (line 5c-column 1) from each quarter plus any pre-tax employee contributions for health insurance or other fringe benefits excluded from Taxable Medicare wages & tips, subtracting any amounts paid to any individual employee in excess of $100,000 and any amounts paid to any employee whose principal place of residence is outside the U.S
      • 2019 or 2020 employer health insurance contributions (Form 990 Part IX line 9)
      • 2019 or 2020 employer retirement contributions ( Form 990 Part IX line 8)
      • 2019 or 2020 employer state and local taxes assessed on employee compensation
    • Eligible nonprofit religious institutions, veterans organizations, and tribal businesses: Add the following:
      • 2019 or 2020 gross wages and tips paid to your employees whose principal place of residence is in the United States, which can be computed using 2019 IRS Form 941 Taxable Medicare wages & tips (line 5c-column 1) from each quarter plus any pre-tax employee contributions for health insurance or other fringe benefits excluded from Taxable Medicare wages & tips, subtracting any amounts paid to any individual employee in excess of $100,000 and any amounts paid to any employee whose principal place of residence is outside the U.S;
      • 2019 or 2020 employer health insurance contributions (Form 990 Part IX line 9)
      • 2019 or 2020 employer retirement contributions (Form 990 Part IX line 8)
      • 2019 or 2020 state and local taxes assessed on employee compensation.
    • LLC: Follow the instructions that apply to their tax filing situation
  •  Step 2: Multiply step 1 by 2.5.
    • For business with an NAICS code of “72” multiply step 1 by 3.5
  • Step 3: Add any EDIL amount that you are receiving (Do not include any EDIL advances).
  • The lesser of step 3 or 2 million dollars is your maximum loan amount

Loan Forgiveness

  • In order for your PPP loan to be forgiven, the following requirements must be met during the 8 to 24 week covered period following loan disbursement:
    • Employee and compensation levels are maintained;
    • The loan proceeds are spent on payroll costs and other eligible expenses; and
    • At least 60% of the proceeds are spent on payroll costs.
  • Documentation realizing these events will be required in order for your loan to be forgiven.
  • You must also have proper documentation showing that your business had a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

How to Apply

Please note the deadline to apply for a PPP loan is March 31st, 2021

  • Once your application is completed and signed, you may either drop off the application along with an official copy of your payroll records for your selected timeframe at any Taylor Bank drive-thru. If you would like to submit the documents electronically, please call 410.641.1728 for secure email access.

FAQ

  • Please see this pdf link  for some Frequently Asked Questions answered directly by the SBA.

 

Have questions? Please contact our dedicated PPP Team at (410) 641-1718 or email ppplending@taylorbank.com

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