Welcome to Congressional Bank’s central hub for Paycheck Protection Program (“PPP”) loans!
Interested in a PPP Loan from Congressional?
Congressional Bank is currently processing 2nd-draw Paycheck Protection Program loans for those customers who received a PPP loan from us in 2020. If you received a first-round PPP loan from us, you should have received email instructions on what is required, but you can also see below for information on how to apply.
If you are looking to apply for a first-time PPP loan or a 2nd-draw loan when you received a PPP loan from another lender, please email CARES@congressionalbank.com as we plan on accepting these applications shortly.
The SBA said on a webinar on January 11th that they believe the funds allocated will be sufficient to meet the demand for 1st- and 2nd-draw PPP loans.
Second Draw PPP Loan Process
Generally speaking, if you have 300 or fewer employees and can show a 25% decline in gross receipts (SBA definition) for any quarter in 2020 compared to the same quarter in 2019, you likely can qualify for a forgivable second draw PPP loan.
If you are planning on applying for a Second Draw PPP loan, what can you prepare in advance?
- Ensure you can log in to the Congressional Bank Customer Portal (NOTE: this is different than Congressional’s online banking!) or create your login as needed (instructions are here). For those of you who have already started the forgiveness process, the same login will work. On the morning of the 25th, you will receive instructions on how to submit second draw requests from the Customer Portal. Only authorized users for each PPP account will be able to log in, please email CARES@congressionalbank.com if you need to add users.
- Download and complete the Second Draw Borrower Application Form. Please ensure that all questions are answered and an authorized representative has initialed all the required certifications.
- Gather documentation supporting the gross receipts decline (see below FAQ for more detail on what is required).
Note that this supporting documentation is mandatory at the time of application for borrowers requesting more than $150,000 but is optional for those requesting less than or equal to $150,000. It will be requested for all borrowers when applying for forgiveness. Please also note that if using a P&L to support gross receipts decline, you must sign and date these forms.
As always, if you have any questions please reach out to CARES@congressionalbank.com
Second Draw PPP FAQ
How does the SBA measure “gross receipts” when looking at the 25% decline?
See more detail here, but for for-profit businesses, the SBA defines “gross receipts” as all revenue in whatever form received or accrued (in accordance with the entity’s accounting method, i.e., accrual or cash) from whatever source, including from the sales of products or services, interest, dividends, rents, royalties, fees, or commissions, reduced by returns and allowances but excluding net capital gains and losses. These terms carry the definitions used and reported on IRS tax return forms.
For eligible nonprofit organizations, see link above for more detail but gross receipts largely includes all contributions, gifts, grants, dues, sales and investment income, without reduction for the attributable expenses associated with each activity.
Gross receipts do NOT include forgiven PPP proceeds or EIDL Advances.
Receipts do not include:
- Taxes collected for and remitted to a taxing authority if included in gross or total income, such as Sales or other taxes collected from customers and excluding taxes levied on the concern or its employees
- Proceeds from transactions between a concern and its domestic or foreign affiliates
- Amounts collected for another by a travel agent, real estate agent, advertising agent, conference management service provider, freight forwarder or customs broker
What documents can I use to show the 25% decline in gross receipts?
If required at application (for those applying for >$150K in PPP Second Draw proceeds), the SBA requires ONE of the following:
- Quarterly financial statements for the entity. If these statements are not audited, the Applicant must sign and date the first page of the financial statement and initial all other pages. If not specifically identified, the Applicant must annotate which items constitute gross receipts.
- Quarterly or monthly bank statements for the entity showing deposits from relevant quarters. Applicant must annotate, if not clear, which deposits constitute gross receipts.
- Annual IRS income tax filings for the entity. If the entity has not filed a tax return for 2020, the applicant must fill out the return forms, compute the gross receipts value (discussed in more detail below) and sign/date the return, attesting that the values entered into the gross receipts computation are the same values that will be filed on the entity’s tax return.
If I use annual tax returns, how do I calculate gross receipts?
- For self-employed individuals (IRS Form 1040 Schedule C): sum of line 4 and line 75
- For partnerships (IRS Form 1065): sum of lines 2 and 8, minus line 6
- For S-Corporations (IRS Form 1120-S): sum of lines 2 and 6, minus line 4
- For C-Corporations (IRS Form 1120): sum of lines 2 and 11, minus the sum of lines 8 and 9
- For nonprofit organizations (IRS Form 990): the sum of lines 6b(i), 6b(ii), 7b(i), 7b(ii), 8b, 9b, 10b, and 12 (column (A)) of Part VIII
- For nonprofit organizations (IRS Form 990-EZ): sum of lines 5b, 6c, 7b, and 9 of Part I.
- LLCs should follow the instructions that apply to their tax filing status in the reference periods.
Are some borrowers eligible for a higher loan amount for Second Draw PPP Loans?
If your business operates in the NAICS code industry beginning with 72 (generally speaking, restaurants, hotels and other hospitality businesses) you are eligible for a PPP loan amount of 3.5x average monthly payroll compared to the standard 2.5x average monthly payroll. Our application will ask you if you operate in this industry.
Also, if you believe FYE 2020 payroll would result in a larger PPP second draw, you are able to update the measurement period.
Already Have a PPP Loan from Congressional?
If you already have a PPP loan from Congressional, please see below for resources.
- Congressional Bank’s loan forgiveness page
- The American Institute of CPAs has a page (here) dedicated to PPP loans with lots of helpful resources for borrowers
For any other questions not answered by the above, please email CARES@congressionalbank.com