PPP2 and the Employee Retention Tax Credit

PPP2 eligibility: Return borrowers

If you received a PPP loan last year, you may apply for another loan of up to $2 million if you:

Have 300 or fewer employees; and
Used the full amount of your first PPP loan (or will soon use the remainder); and
Can show that your business experienced a 25% decline in gross receipts in any 2020 quarter compared to that same quarter in 2019.

PPP2 eligibility: First-time borrowers

If you’re a first-time borrower, you are eligible for a PPP loan if you are:

A business with 500 or fewer employees; or
A sole proprietor, independent contractor or self-employed individual; or
An accommodation or food services operation (i.e., you have an NAICS code starting with 72) and you have fewer than 300 employees per physical location; or
A nonprofit (this includes religious institutions).

Employee retention tax credit eligibility

In general, you are eligible for the ERTC if your business:

Was fully or partially suspended due to orders from an appropriate governmental authority limiting commerce, travel or group meetings due to COVID-19; or
Has 2020 gross receipts for at least one calendar quarter that are less than 50% of the gross receipts received during the same calendar quarter(s) in 2019 (and/or less than 80% in 2021).

If you believe you meet the PPP2 and/or ERTC qualifications above and are an existing Wipfli client, we are here to help. Our fee for assisting with determining your eligibility starts around $1,000 and will ultimately depend on your specific situation.

Please contact your Relationship Executive to engage Wipfli and start the PPP2 application and ERTC review process.