2021 Paychecks Protection Program (PPP) and Disaster Loan Services

O’Brien & Panchuk is uniquely qualified to guide your business affected by Covid-19 through many phases of application and loan forgiveness related to various federal and state relief programs for small businesses.  Many businesses miss the opportunity to apply for certain programs such as the California state grant and/or fail to apply for PPP round two properly or timely.  

Quick Facts – Federal Program

                 Paychecks Protection Program First Draw (PPP)

  • Sole proprietors
  • Small business concern that meets SBA’s size standards 
  • Any business, 501(c)(3) non-profit organization, 501(c)(19) veterans’ organization, or tribal business concern (sec. 31(b)(2)(C) of the Small Business Act) with the greater of:
  • 500 employees or
  • That meets the SBA industry size standard if more than 500 employees.
  • Any business in Accommodations and Food Services industry (NAICS code begins with 72) that has more than one physical location and employs less than 500 per location.
  • Deadline: March 31, 2021

                 Paychecks Protection Program Second Draw (PPP2)

                 A borrower is generally eligible for a Second Draw PPP Loan if the borrower:

  • Previously received a PPP Loan and will or has deployed the full amount solely for qualified expenses.
  • No more than 300 employees; and
  • Can demonstrate at least a 25% reduction in gross receipts on quarterly basis in 2019 and 2020.

Quick Facts – California Program:

CA Grant

  • Grants are available to eligible small businesses affected by Covid-19 able to substantiate a 25% or greater reduction in gross receipts in 2019-2020 on quarterly basis. 
  • Unlike the Payroll Protection Program, the CA Grant is not first come-first serve – All applications will be considered.
  • Second round of applications opens Feb 2nd and closes Feb 8th   2021.


Covid-19 Business Relief PPP & CA Grant

Answers to frequently asked - and frequently missed - Questions (FAQs):

Paycheck Protection Program

  • For PPP2, proof of 25% Revenue reductions amounts are not required until forgiveness is applied for; yet many lenders require the quarterly amounts be provided at time of application.
  • If PPP 1 recipient is applying for PPP2, it may be required to apply with the same lender that processed PPP1 application. 
  • Eligibility for PPP2 not contingent on application for forgiveness of PPP1; must confirm full use of proceeds form PPP, if any.
  • Benefits eligible for payroll calculations include: Group Health (including premiums), group life, disability, vision or dental insurance and retirement benefits.
  • Sole Proprietors are eligible for the program based on Schedule C net income amount in addition to employee payroll amounts. 
  • Schedule E – Real Estate and Royalty Income is not eligible. 
  • Gross Receipts includes all revenue received or accrued (in accordance with the entities accounting method) less returns and allowances. Revenue includes sales of products/services, interest, dividends, rents, royalties, fees or commissions.
  • Second Draw PPP required having received a first draw and a 25% reduction in gross receipts between comparable 2019/2020 quarter.
  • If you did not receive a first draw, you can apply and will not be subject to the revenue reduction requirement.
  • Borrowers in the Accommodation and Food Service Sector (NAICS 72) can receive up to 3.5 times per month loan amount.
  • You can use your 2019 or 2020 payroll plus benefit monthly costs.
  • There is no longer a reduction of forgiveness amount if you received the EIDL Grant.

CA Grant

  • Unapproved round one applications will automatically be submitted to the second round. 
  • For applicants lacking Articles of Incorporation/Organization or Fictitious Business Name, business license may be used.
  • Must provide comparable Gross Revenue report from April 1st – September 30th, 2019 vs April 1st – September 30th, 2020.
  • Race, Ethnicity and Disability disclosure are mandatory.