![]() ![]() The Applicant should be prepared to provide documentation substantiating the loss in revenue. If the Applicant was not in business during 2019, but was in operation on February 15, 2020, Applicant will meet the revenue reduction if it had gross receipts during the second, third or fourth quarter of 2020 that demonstrate at least a 25 percent reduction from the gross receipts of the Applicant during the first quarter of 2020. Keep in mind, however, that gross receipts of the Applicant must be aggregated with the gross receipts of its affiliates. Similarly, if the Applicant was not in business during the first, second or third quarter of 2019, but was in business during the fourth quarter, the Applicant can compare the fourth quarter of 2019 against any quarter of 2020.Īlternatively, if the Applicant who was operational in all four quarters of 2019 is deemed to meet the revenue reduction requirement if it can demonstrate a reduction in annual receipts of 25 percent or more in 2020 compared to 2019 (provided the Applicant can provide annual tax forms substantiating the revenue decline). If the Applicant was not in business during the first or second quarter of 2019 but was in business during the third and fourth quarters of 2019, Applicant can compare third or fourth quarter of 2019 against any quarter of 2020 to demonstrate the revenue reduction. Generally, if the Applicant had gross receipts during any quarter of 2020 that demonstrate at least a 25 percent reduction in Applicant's gross receipts as compared to the same quarter in 2019, the revenue reduction criteria is met. ![]() This threshold can be met in different ways, depending on when the Applicant was in business, but generally is based on gross receipts. How is the 25 percent revenue reduction calculated? Note that Applicants are only eligible to receive one Second Draw Loan.
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