In preparing webinars and zoom sessions for my clients and colleagues, I often run across other CPAs doing similar work. Some are better than others, and some leave a lot to be desired. I’ve been very impressed with the free series presented by Hannah Smolinski of Clara CFO.
Recently I presented a webinar for Bookkeeping Buds members that they graciously allowed me to share at no charge on my blog. It goes through everything Hannah mentions in the above video, however it a) focuses on the Employee Retention Credit and its interaction with PPP, and b) is directed toward accounting and bookkeeping professionals, rather than small business owners.
Hannah sums up the PPP2-eligibility portion of that webinar in this free 18-minute video quite well, so I wanted to share it with my readers (rather than record a new one of my own or make you sit through an hour and 15 minutes of accounting-speak).
But before you watch it, here’s a summary of PPP2 commonly-asked questions and answers:
Am I eligible for more money?
If your business’s gross receipts declined at least 25% in at least one quarter (any one) of 2020 compared to that same quarter in 2019.
Can I get more PPP money if I got it the first time?
Yes, you can get a second loan if you got a first, as long as you meet the above eligibility requirement.
Do I need to apply with the same bank that gave me my first PPP loan?
No, it doesn’t have to be with the same bank. I am using the AICPA’s partnership with biz2credit because their application and forgiveness process are both streamlined; it is directly with a bank, rather than a third-party; the professional consultation of AICPA gives me confidence that the calculations are accurate.
Do I need to have applied for forgiveness already on my first loan?
No, you don’t have to have already applied for forgiveness on your first loan in order to apply for a second round. You just have to certify that you have used all the PPP1 funds.
What if I didn’t apply first-time around?
You are eligible to apply for a loan under the original rules, meaning you don’t have to prove the decline in revenue like second-time borrowers.
Hannah also provides a free spreadsheet with a tab to run the “25% decline in gross receipts” test, if you don’t already use QuickBooks Online (or if you use QBO Simple Start, which does not have the same reporting features).
She goes through both the spreadsheet tab and the QBO reporting option in the video. (Note: this sheet is an additional tab she’s added to her already-existing free PPP Forgiveness Calculator Excel workbook; and while I think she’s done a very good job with it, I prefer the AICPA version, also free to the public. They also offer a free FTE calculator, which you will need if you are not able to claim any of the safe harbors.)
Once you’ve determined that you qualify, you’ll want to know how to calculate the maximum amount of PPP2 to which you’re entitled. The AICPA offers a free calculator for that as well, but I noticed that Hannah has a low-cost ($37) one-hour webinar recording from January 6th available; she generally does a nice job explaining things to business owners who might be doing their own bookkeeping, so while I have not myself seen the video, it feels worth sharing with you here in case it is helpful.
I do not have any professional affiliation with Clara CFO and do not receive any payment from her or AICPA for promoting their offerings — I just think they’re really good and want to share!
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