PPP Round 3 - What You Need to Do to Get More $$$ - YouTube

In this video, I'm going to show you exactly what  documentation you will need to provide to your  

lender in order for you to secure additional  money for PPP round three. Stay tuned.  

Hey everybody. Welcome to my channel. I  am your host, Leo Landaverde, outsource  

CFO and commercial lender, helping you scale your  business. If you are ready to grow your business  

to seven figures and beyond while creating the  financial freedom and the lifestyle you want,  

then don't forget to hit the bell and  subscribe to my channel so you're notified  

every time a new video comes out. Hey everybody,  two weeks ago, on December 22nd, I released a  

video called PPP round three, get it before it's  gone that had a lot of traction. A lot of you  

tuned in to watch it, which I'm grateful for. This is a follow up video on what has happened  

since then. A lot has happened, in fact, today  is January 8th, yesterday, the SBA issued  

two interim final regulations also known as IFRs  giving greater detail as to what's going to happen  

regarding PPP round three and what you  need to do to take advantage of it.  

The purpose of this video is basically to tell  you how you will qualify and what you will need  

to do in order to secure the funds that you need.  It doesn't matter whether you got EIDLs before,  

it doesn't matter whether you got a PPP  loan before, this is kind of where it is.  

Now you have two choices. You're either going  to read the 82 pages in one of the documents,  

which I actually took the time to read yesterday.  And I highlighted some things you can do on your  

own. I'll be sharing the links to where these  articles are in the note section of the video.  

Also, there's another 42 page document,  so you have 120 pages worth of stuff. So  

I'm going to do my best to summarize it and to  help you so you can get exactly what you need.  

So I want to thank my friend, Alyssa White,  who took the time to digest this information,  

basically read all of it and put together this  email, which I'm going to go over. So thank you  

Alyssa for that. You make my life so much easier.  And for those of you who are watching as well.  

So here's what you need to know. The eligibility  requirements, unlike the first round of the PPP,  

the second round includes some additional  eligibility requirements. The company must  

have 300 or less employees. The company must  have used the entire amount of the first PPP loan  

or will use such amounts. So that means that you  don't have to have used it all so long as you  

will use it. That's the key thing. The company,  and this is different than the last time around,  

the company must have gross receipts that were  in either Q1, Q2, Q3, or the whole year of 2020  

that were at least 25% less than  the respective quarter in 2019.  

And the SBA went into great detail with multiple  examples to make it abundantly clear what a 25%  

reduction in revenue is. You can call it  reduction, gross receipts or sales. You must  

have a reduction in sales or revenue equal to 25%  in any given quarter in 2020 as compared to 2019.  

So if you were not in operation in 2019, so long  as you were in operation by February 15th, 2020.  

So that's important to know. The amount of the  funds in this round are not to exceed $2 million  

per applicant. And the calculation is still based  on two and a half times your monthly payroll.  

However, this has been expanded to three and  a half times your monthly payroll if you are  

in the hospitality industry, those who have been  the hardest hit like restaurants and hotels and  

anybody who is actually servicing in the  hospitality industry, those get three and  

a half times. You get to have either the eight  weeks coverage period or expanded to 24 weeks.  

You get to choose which one you want. This  new round allows you to choose either one.  

There should be some expansion on the use of PPP  funds. The allowable use of PPP funds for this  

second round has been expanded to include not just  payable, rent, and cover mortgage and interest and  

utilities from the prior round, but you can also  include general operation and supplier costs.  

The biggest change that it has been passed is that  into law, that the proceeds are tax deductible,  

both proceeds of round one, round two and  now round three are tax deductible, you need  

to work closely with your tax preparer to make  sure that that happens. This is a huge reversal  

from the last regulation that they have, which  wasn't abundantly clear whether you got a loan  

outside of the PPP and outside of this crisis,  anytime you have a loan forgiven turns into  

income, not with the PPP money. Please hear  this. It will not turn into income for you,  

you will not pay taxes on it. There are other changes. If you've  

got an emergency disaster relief loan, a lot of  you got the $10,000 basically grant for free,  

none of that will matter in the reduction  of your PPP forgiveness for either around.  

There's a whole lot more, I'll be happy to share  these things that goes into a lot of detail.  

Here's really what I need you to get out of  this video. People have been asking me, Leo,  

what is it that I'm going to need to prepare? Oh, one thing before I get into that.  

As of today, January 8th, according  to the SBA only community banks  

will be able to the first round of PPP  applicants, those of you who did not  

take PPP money ever before, if you're  working with a community bank, you will  

be able to do so on Monday or Tuesday.  So if you're looking at your calendar,  

so today is the eighth, so we're  looking at the 11th and the 12th,  

January 11th and January 12th. For the second  round of PPP, community banks will be able to  

Wednesday and Thursday. Now the good news for  those of you who need my help, I have paired up  

with a large servicer and lender that is not  a community bank, which this regulation will  

not apply to. So if you already applied with me  and you are ready to receive your portal access,  

then we will be competing hand-in-hand, we'll be  competing with so there's no delay for you.  

So please comment below and let me  know and feel free to reach out to me.  

You have my contact information as well. So it's  important that you hear that there will not be any  

delays if you're working with somebody who is not  a community bank, these rules only apply to FBIC  

insured lending institutions, your community  banks and your large banks. So don't be going  

to Bank of America or City Bank because  they will not be able to do anything.  

So onto the documents that you most likely  will need to provide in order to secure  

a forgiveness. Now, keep in mind that if  you're getting $150,000 PPP loan or under,  

you will probably need to just do an attestation  of your revenue loss et cetera, but the important  

thing is, you will have to prove those things,  the reduction, later. So please don't be cavalier  

about it. If you have truly experienced revenue  deductions. So to support your revenue deductions,  

financials and bank statements to help support  this 25% reduction quarter for quarter in any  

quarter in 2020 as compared to 2019, best  to show is your quarterly P&L comparison.  

A lot of my clients work with QuickBooks, whether  it's QuickBooks online or QuickBooks desktop,  

either one, you can actually pull a quarter  comparison. So you go to April 1st 2020 to  

June 30th, 2020, and and you can click on the  report section and you can compare to the prior  

period quarter. And it should be able to look side  by side the two quarters for you to be able to  

verify that you have a 25% reduction. I did this  asset test with many of my clients. So unless you  

have one quarter that has a 25% reduction over  the prior quarter in 2019, then you qualify.  

Okay, so now you're going to ask, well, what  happens, Leo, if I didn't have any revenue in  

2019, but you started before February 15th. So if  you started on January 1st through February 15th,  

2020, then you can take any quarter in 2020 and  compare against quarters in 2020. So if your Q1  

2020 was 25% less than Q4 2020, you will qualify.  So if you're applying, when you compare the gross  

receipts, you may use the full calendar year. Now  here's another thing. So you may say, well, Leo,  

it's hard to say quarter over quarter whether  I had a loss. Well then you can take the entire  

year. So of course, you won't have any tax returns  at this stage of the game for your 2020, but you  

should be able to look at your financials in your  accounting software and be able to pull a 2020  

versus 2019 comparison and see if you actually  had a 25% or more or revenue reduction.  

All right. So enough of that. So P&Ls will do.  In some cases, if you don't have the accounting  

software, if you can document that for yourself  with bank statements, anything that is going to  

show evidence of revenue loss or revenue  reduction. Payable reports. You have to be  

able to confirm that your business existed before  February 15th, 2020. Okay, so you are able to use  

the payroll costs that are higher on either 2019  or 2020. So say for instance your payable costs,  

assuming that you pass the revenue reduction  threshold, your payable records say you had  

more payroll in 2020 than you did in 2019. And remember the formula is you're going to get  

either two and a half times or three and a half  times your payable records. It doesn't matter,  

whatever you think you have the highest payroll,  use that because you may get more money.  

So if you have your entire year, you can take your  entire 2019 and 20, your entire payroll, and you  

should be able to evidence that by your 940 or the  sum of your 941 quarterly taxpayer reports to the  

IRS. You should be able to have some evidence that  you can take the whole 940 form and what is there  

divided by 12, it's going to give you monthly  times two and a half is going to give you  

the dollar amount that you qualify for. And you should also have your business documents,  

your articles of incorporation or W9. You have to  have evidence that you have a bonafide for-profit  

business or nonprofit, but it has got to be a real  business. You should be able for any owners to  

provide personal information, tax returns and  statements. Now, if you have those available,  

great. Now keep in mind that it's not going to  matter much as you're getting your loan as it  

will matter a great deal once you're asking for  forgiveness, because if you do not have the proof  

of what your application had, then you may be  subject to lack of forgiveness. And you don't want  

that. I mean, if you do things right, you should  be able to have 100% of everything forgiven.  

So hopefully this helps you out. And I know that I  went through a lot, feel free to reach out to me.  

If you're still waiting for the big banks to help  you, they probably will not be able to help you.  

So if you're looking for somebody to help you  with your PPP loan, I'd be more than happy to  

assist you. We have a direct channel link  to one of the largest issuers of PPP loans  

in 2020 to the tune of $4 billion, who  happens to be a servicer of PPP loans.  

That's all they do. So you will be in good hands.  Thank you so much for watching this video.  

Hey, please comment below and let me know if you  need help with your PPP loan. I'd be happy to  

help you. I have the connection, I have the  lender who's only specialized in PPP money,  

and I can help you. Also, if you want to join a  community of like-minded, successful entrepreneurs  

just like you, then join our Facebook group at the  link below where I share weekly tips, strategies,  

and tactics of how my clients are growing their  businesses to seven figures and beyond.