PPP application forms published – Journal of Accountancy


The U.S. Small Business Administration and Treasury released loan application forms on Friday evening for the newly launched Paycheck Protection Program (PPP), the will start Monday, initially for selected lenders and borrowers, before a wider opening a few days later

The forms are Form 2483 – Paycheck Protection Program Borrower Application Form and Form 2483-SD – Second Draw PPP Borrower Application Form. Form 2483 was updated from previous iterations that started with the original PPP program. The Form 2483-SD is a new form for qualified PPP borrowers to apply for a second forgiveness loan drawing while attempting to navigate the economic seas that are in the throes of the COVID-19 pandemic.

The SBA and the Ministry of Finance also published top-line summaries of the first and second drawing PPP loans and two procedural notices.

The document was released after the SBA and Treasury Department announced Friday that the application window for $ 284 billion in forgivable PPP loans would open again Monday initially for Community Financial Institutions (CFIs), which support minority-owned companies and women in lending. In particular, CFIs will be able to issue loans to PPP borrowers for the first time from Monday and to second PPP borrowers from Wednesday.

The SBA and Treasury Department said the PPP would open to all lenders a few days after opening to CFIs, but they did not give a date.

Congress revived the PPP as part of the $ 900 billion COVID-19 Aid Act which came into force on December 27th. The original PPP provided $ 525 billion in forgivable credit over five months before she stopped accepting applications in August. The new PPP has $ 284.5 billion available, including $ 35 billion for first-time loans and $ 15 billion for joint finance institutions.

The SBA and the Treasury Tre issued instructions on late Wednesday evening for the new PPP, which shares many of the same rules as the old PPP, but also has some significant differences. The instructions came in the form of three documents:

  • A 82-page provisional final rule (IFR) called “Temporary Changes to the Business Loan Program; Paycheck Protection Program as Amended by the Economic Aid Act, “which consolidates the eight-month rules for PPP loans for first-time borrowers and incorporates amendments to the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, PL 116 – 260.
  • A 42-page IFR called “Temporary Changes to Business Loan Program; Paycheck Protection Program Second Draw Loans, which sets guidelines for new PPP loans to companies that have previously received a PPP loan.
  • A three-page document called “Guidance on Accessing Capital for Minority, Underserved, Veteran and Women-Owned Business Concerns”, which includes an obligation by the SBA to open at least the first two days of the PPP application window exclusively for applications from financial institutions in the community.

Quick overview of the application forms for PPP borrowers

The PPP borrower application forms released on Friday include instructions on how to calculate labor costs according to the guidelines provided on Wednesday. In general, PPP borrowers can receive first and second time loan amounts up to 2.5 times their average monthly wage bill (with a cap of $ 100,000 on an annual basis per employee) in 2019, 2020, or the year prior to the loan. PPP borrowers with North American Industry Classification System (NAICS) codes starting with 72 (ex.

The forms also contain adjustments to the calculations for seasonal farms, start-ups, farmers and ranchers and partnerships.

The maximum loan amount is $ 10 million for first-time borrowers and $ 2 million for second-time PPP borrowers.

PPP borrowers may be waived their first and second drawing loans when the funds are used for the following eligible costs: payroll, rent, covered mortgage interest and utilities, covered expenses for worker protection and plant remodeling, covered property damage costs, covered payments to suppliers, and payments for business software or cloud computing services that facilitate business operations, product or service delivery, and a range of back office functions, including bookkeeping.

To be eligible for full loan waiver, PPP borrowers must spend at least 60% of funds on payroll over a covered period of their choice between eight and 24 weeks.

Initial PPP loans are available to borrowers who were in operation on February 15, 2020 and who belong to any of the following groups:

  • Companies with 500 or fewer employees who are eligible for other SBA 7 (a) loans.
  • Sole proprietorships, independent contractors and authorized self-employed.
  • Non-profit organizations, including churches.
  • Accommodation and catering establishments with NAICS codes starting with 72 that have fewer than 500 employees per location.
  • Sec. 501 (c) (6) Business associations such as chambers of commerce, visitor offices, etc. and “target marketing organizations” that have 300 or fewer employees and receive no more than 15% of lobbying income. Lobbying activities must not represent more than 15% of the organization’s total activity and must not have cost more than $ 1 million in the last tax year ended February 15, 2020. Sports leagues are not eligible.
  • News organizations that are majority owned or controlled by a company with NAICS code 511110 or 5151, or nonprofit public service broadcasters with a trade or corporation under NAICS code 511110 or 5151. There is no size limit for this category more than 500 employees per location.

Borrowers are eligible for a second PPP loan of up to $ 2 million provided they have:

  • 300 or fewer employees.
  • The full amount of their first PPP loan will be used or will be used to pay off the second PPP loan to the borrower on or before the expected date. The IFR also clarifies that the borrower must have spent the full amount of the first PPP loan on eligible expenses.
  • Experienced a 25% or more decline in sales for all or part of 2020 from all or part of 2019. This is done by comparing gross earnings in any quarter of 2020 with an applicable quarter in 2019 or one in the IFR. added provision, a borrower who has served all four quarters of 2019 may file copies of their annual tax forms showing a reduction in annual income of 25% or more in 2020 compared to 2019.

AICPA experts discuss the latest information on PPP and other small business aid programs in a bi-weekly virtual town hall. The webcasts providing CPE credits are free for AICPA members. Go to AICPA Town Hall series Website for further information and registration.

Accounting firms can submit PPP applications to the CPA portal for corporate finance, created by AICPA, CPA.com and fintech partner Biz2Credit.

The AICPA Paycheck Protection Program Resource Page houses resources and tools created by the AICPA to help manage the economic impact of the coronavirus.

For more news and coverage of the coronavirus and how CPAs are handling challenges related to the outbreak, visit the YofA‘s Coronavirus resources page or subscribe to our email notifications for breaking PPP news.

Jeff Drew ([email protected]) is a YofA Editor-in-chief.


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