PPP Round 2 Explained with Brian Kerrigan #35
How did your business fair when COVID-19 hit our nation last year? Were you able to adapt and pivot to make sure your business stayed solvent? How did the regulations impact your business? Hearing from frustrated business owners and leaders, the US federal government rolled out a program to help businesses during the pandemic impact. This program is called the Paycheck Protection Program (PPP). Round 1 of the PPP funding, which started in April 2020, ran out in a matter of weeks as a panicked business community quickly applied for loans. The second round, by contrast, finished the year with more than $100 billion leftover.
Today, I am joined by my guest, Brian Kerrigan. Brian is a Partner at the Hartford, Connecticut office of Whittlesey Advising. He has provided tax compliance and consulting services for large public and privately held companies throughout New England for more than 17 years. He is skilled in managing tax computations for larger corporations operating in federal and multi-state tax environments and has extensive experience with mergers and acquisitions of both private and publicly held companies.
In our conversation, you’ll hear as Brian explains how PPP funding works, what you can do to participate, how the loans can be forgiven, and so much more. I know that savvy business leaders like you will learn a lot from Brian’s helpful perspective - don’t miss it!
You will want to hear this episode if you are interested in...
Brian Kerrigan joins me to explain how Round 2 of the PPP program works [1:20]
Are people still eligible for Round 1 of PPP? [4:00]
What you need to know about applying for Round 2 of PPP [9:00]
Can you get your PPP loan forgiven? [12:30]
Do you need to be worried about getting audited? [16:00]
Bryan goes over some additional programs to help businesses during COVID-19 [18:00]
Closing thoughts [20:00]
What you need to know about applying for Round 2
So you are ready to apply for Round 2 of PPP, what are your next steps? Can you apply for Round 2 in addition to Round 1? According to Brian, you need to start your application process through a bank or a Fintech company. Top Fintech companies are Chime, Tala, Pitchbook, Avant, Braintree, and Morningstar just to name a few.
A borrower is generally eligible for a Second Round PPP Loan if the borrower:
Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses
Has no more than 300 employees; and
Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020
To hear more about PPP from Brian as he expands on this topic, tune into this episode!
How likely is an audit?
When it comes to getting audited by the federal government, should business leaders who participate in PPP be worried? Is there added risk for audit when it comes to using PP? While you certainly want to make sure that you are doing everything above board, the chances are unlikely for you to get audited if your loan is under $2 million. That being said, the Small Business Administration (SBA) has reserved the right to also audit loans in any amount at any time, and will likely “spot check” loans in lower amounts. Learn more about this critical topic on this episode!
Resources Mentioned on This Episode
bkerrigan[at]WAdvising.com