PPP 2nd Draw


The Coronavirus Relief Bill was signed into law on December 27th. While there are many aspects of this law (which we will be communicating to you later), the focus of this communication is the Paycheck Protection Program (PPP) second draw. Here is what you need to know:

·       To participate, you must be able to demonstrate at least a 25% decline in income (receipts minus refunds) in any calendar quarter of 2020 when compared to the same quarter of 2019.

·       All receipts must be counted, except for receipts due to the sale of assets (EG furniture or equipment), and the PPP. You should include HHS payments.

·       Applicants must certify that current economic uncertainty makes this loan request necessary to support ongoing operations. Those whose original loans were less than $2 million will be deemed to have made the certification in good faith.

·       The application process opens for all applicants on January 13th. Not all banks may be ready to receive applications on that date.

·       The application process closes on March 31st. Funds will be distributed on a first come first serve basis.

·       The program requires applicants to have taken the first draw and already spent it on qualified costs such as payroll, rents, utilities, etc.


Please read the Program Overview and the terms and conditions included on the SBA Application Form to see if applying makes sense for you.


PBM Retainer Clients

·       For all PBM Regular Retainer clients for whom we prepare a monthly/quarterly Operating Statement which summarizes financial activity in your business, we will:

o   Screen the 2nd and 3rd Quarter 2020 in comparison with the same quarters in 2019 and compute the year over year decline in comparative revenue for those quarters.  We expect to do this within a week.

o   Communicate the results to you, and if the business meets the threshold test for a reduction in revenue, discuss the next steps.

Non-Retainer Clients

·       Please reach out to your consultant and discuss how we might assist you with the process.

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