Second Round of PPP (Paycheck Protection Program) information with Keith Kirkland

February 3, 2021 By Samantha Braffman

The second round of PPP (Paycheck Protection Program) loan applications has been released to the public as of January 2021. For any small business that has been struggling due to the Covid-19 Pandemic, seeking a PPP loan through the SBA is a viable option to keep your business alive. GLO spoke with PPP Loan expert Keith Kirkland to help our members understand how to apply for a loan.

Why Should I Apply for a PPP loan?

Keith Kirkland works with the ACAP Fund GP, LLC, a company that specializes in the SBA and is the largest private holder of PPP loans. ACAP covers $5 million from over 40 banks and has begun to get ready for the new round of loans, PPP 2.0. ACAP helps their customers apply for loans and get the funding they need to keep their business running.

Am I eligible for a PPP loan?

The main criteria for a business to apply for a PPP loan are twofold:

1. Your small business must have been in operation on February 15th, 2020.
2. Your business must have 300 employees or less.

Beyond these requirements, you can find further specifications on GLO’s platform here. If you applied to obtain a PPP loan in the past, you can reapply this round. However, it is necessary to show proof of a 25% or higher decline in revenue from 2019 compared to 2020. You can choose to show this revenue loss either over a specific quarter or the calendar year.

If you were denied a PPP loan in the first round, there is no indication that you cannot reapply this year. If you received a first-round PPP loan, you can still apply for the second round. You do not have to show that your first loan has been forgiven, however, you must have proof that you have spent that money before you receive the second loan.

How do I apply for a PPP loan?

You can apply for a PPP loan directly from GLO’s platform . If your loan applications are taking a long time to process, you can apply through multiple banks. The SBA will only consider the loan application which they receive first. The ACAP’s process tends to be more streamlined than most banks because of their large team.

In order to apply, you need three qualifying documents. First, a copy of your driver’s license or passport. Second, your social security number or EIN number. Finally, any supporting payroll documents, which differ based on how you file your taxes.

What can I use a PPP loan for?

It is necessary to note that at least 60% of funds received must be used for payroll and payroll expenses. The maximum amount of funds that can be received per business are $2 million, with some exceptions for group applications. You can include employees on your application whose salary is over $100k, however, that is the maximum amount any employee can be covered under the PPP loan. You can add the employer-paid portions of healthcare and retirement benefits (including state taxes) to the loan application.

PPP Loan Nuances

Your PPP loan application can only include W2 employees. If you’re a small business with 1099 contract employees, you cannot include them on your application. However, the contractors can file for a PPP loan themselves as self-employed individuals. The easiest loan to process is if you apply individually for a salary of $150,000 or less. Most loans within that category are being forgiven by the SBA.

If you are the sole proprietor of your company with no employees, as long as you show how you report your income, you will still be able to apply. Companies with a NAICS code that start with 72 within the restaurant and hospitality industry can have special considerations for their payrolls. If you have further questions about your specific situation, look on theloansource.com for more insights and resources.

How do I know if I can qualify for forgiveness?

Qualifications for forgiveness depend on a variety of case-by-case circumstances. Most expenses that can be used to be forgiven are payroll, utilities, and rent. Many times loans are not 100% forgiven, however, the interest rate is only 1% and can be paid over the course of 5 years, lowering the risk immensely. Kirkland recommends applying for the loans regardless of your expectations of forgiveness.

Small Business Communities

It is important that small businesses are able to obtain all resources offered to them. GLO has partnered with Kirkland and the ACAP Fund to provide as much guidance as possible for your organization to receive the resources they need. To watch the full interview with Keith Kirkland, sign up for GLO here.