Pandemic Assistance Information
February 23, 2021
Paycheck Protection Program (PPP) 2.0

The SBA is now accepting applications for new PPP Loan/Grant (AKA, “PPP-2” or “Second Draw”) from banks and other lenders.

New rule today for PPP Loan calculation for Consultants/Sole Props/Gig Workers/etc.

As of today (Feb 23, 2021) the calculation for PPP2 loan amount for consultants, sole proprietors, independents, gig workers, etc., is based on Gross Sched C income (Sched C, Line 1) instead of Net income (Sched C, Line 31.) If your net business income was $100K or more for 2019 (or 2020) this change will not affect you because you’ve already applied for the maximum ($20,833) PPP loan amount.
However, if your business income was less than $100K, and hence your maximum PPP loan amount would be something less than $20,833, this will certainly affect you, and could be a large difference.
The following video from Clara CFO was posted today (Feb 23) and has the new rules explained in the first 10 minutes. The 38-minute video goes on to answer many questions from the YouTube Live presentation participants.

If you have not yet completed a PPP loan application, or have submitted one, but it has not been forwarded from your lender to the SBA yet, login or contact your lender (or bank) to get your loan amount changed, based on your gross income.


View these presentation slides from the Jan 26 CNSV/CPP webinar for an overview of PPP Loans 1 & 2, Loan Forgiveness, and the EIDL grant.     PPP Slides (pdf)         Q & A  

See this PPP: General and Application Info from Lendio

Paycheck Protection Program (PPP) – Forgiveness

The SBA will be providing a new simplified Forgiveness form (likely, one-page) for loans under $150K. The full 3508 form is for everyone else.


Q&A for Jan 26 CNSV/CPP webinar: “Paycheck Protection Program (PPP) Info” presented by Jeff Safire –

Q: Will you post the slides to the attendees?
A: Slides will be posted in a little while – tonight.

Q: Is this being recorded?
A: There was an issue with the recording. I started the recording, but Zoom complained about something with audio, so I started the presentation with recording turned off. There was no point in recording without audio. However, I did turn on a native screen recorder on my Mac, so hopefully, I will be able to make that useful in a few days and contact attendees when it is available.

Q: Have you received a PPP-2? or know anyone who has?
A: I do not know anyone who has received a PPP-2 loan yet; including SBA approval or received actual money. Remember that the SBA portal for most small companies just opened last Wednesday.

Q: I used Bluevine for PPP-1, it was painless. They are also doing expedited processing for PPP-2 loans for those that had PPP-1 with them.
A: Good to know. Thanks! I was not aware of anyone who had used them previously.

Q: What is likely time to receive PPP-2? I know applications have just opened, so when will first fundings be?
A: I haven’t seen any information about how long it takes. I went through Bank of America last time (PPP-1) and it took 15 days total to get an email noting loan approval from the SBA with an SBA loan number. The money was deposited into my account 5 days after that. I imagine and hope they are better-prepared this time.

Q: Can you apply to both PPP-2 and EIDL grant?
A: Not at the same time. The application form for PPP-2 includes a checkbox that says you do not currently have an active PPP-1 or EIDL loan/grant application. I know several people who applied and received an EIDL grant the first time (last year) before the PPP program was ever opened up, and they were able to successfully obtain a PPP-1 loan following that. Since there is a smaller money pool for PPP-2, you likely don’t want to gamble applying for an EIDL loan now, and then apply for PPP-2 after receiving your EIDL money.

Q: EIDL $1000 is in conflict with any portion of PPP loan amount?
A: No. The EIDL amount of $1000 does not affect your potential amount for a PPP loan. In fact, the PPP loan application form specifically states this.

Q: How long did PPP1 forgiveness take. I am still waiting.
A: I do not know anyone who has received confirmation of a PPP-1 loan forgiveness yet. And there is now a new Forgiveness form. In most cases, if you have started filling or processing your forgiveness form, it must be submitted by January 31st. If you already submitted your forgiveness application, you are fine. Otherwise, you have to wait for your lender to post the new form. I don’t know how many new people the SBA has hired, but with the opening of PPP-1 and 2 now, the SBA is going to be very busy, and it’s possible forgiveness applications may not be their priority.

Q: I applied for PPP-1 with Bluevine. As Mike said, it was painless. A few days ago, they invited me to apply for PPP-2. Again painless. But I applied on Sunday, and I haven’t even received an email from them. Can they be that overwhelmed?
A: Yes, they are definitely very busy. In a 40-minute YouTube Live about 2 weeks ago, the CEO of Lendio said they will be hiring 500 people for processing loan applications, and have already hired 200 of those. I applied with Lendio and Fundera when the portal opened on Wednesday last week, and other than the ‘Your application is complete, and will be sent to an appropriate lender,’ message after submitting, I have not received any further email communication from either.