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FREQUENTLY ASKED QUESTIONS


  • Second Draw PPP Loans

    • I am applying for a Second Draw Loan. And my loan amount is less than $150,000. Do I need to provide documents for the Revenue Test.

      Yes. Regardless of the loan amount you must provide documents indicating that you have met the revenue test
    • I can’t remember my password for the online PPP portal. How can I reset it?

      You can reset your password by accessing the portal login screen, inputting the email address you used as a username, then clicking on the “Forgot My Password” button. This should generate an email to you with a link you can click to choose a new password. If that fails, please email your request to ppp@banksocal.com.
    • How do I calculate the “Revenue Test”?

      To be eligible for a Second Draw PPP Loan, the borrower must have experienced a revenue reduction of 25% or greater in 2020 relative to 2019.26.   That revenue reduction is to be calculated as follows:
      • •  The borrower had gross receipts during the first, second, third, or fourth quarter in 2020 that demonstrate at least a 25% reduction from the applicant’s gross receipts during the same quarter in 2019.27
      • •  If the borrower was not in business during the first or second quarter of 2019, but was in business during the third and fourth quarters of 2019:  the applicant must have gross receipts during the first, second, third, or fourth quarter of 2020 that demonstrate at least a 25%reduction from the applicant’s gross receipts during the third or fourth quarter of 2019.
      • •  If the borrower was not in business during the first, second, or third quarter of 2019, but was in business during the fourth quarter of 2019:  the applicant must have gross receipts during the first, second, third, or fourth quarter of 2020 that demonstrate at least a 25%reduction from the fourth quarter of 2019.
      • •  If the borrower was not in business during 2019, but was in operation on February 15, 2020:  the borrower must have gross receipts during the second, third, or fourth quarter of 2020 that demonstrate at least a 25% reduction from the gross receipts of the entity during the first quarter of 2020.
      • •  A borrower that was in operation in all four quarters of 2019 is deemed to have experienced the required revenue reduction if it experienced a reduction in annual receipts of 25% or greater in 2020 compared to 2019 and the borrower submits copies of its annual tax forms substantiating the revenue decline.
        Calculation of Gross Receipts:
      • •  Gross receipts includes all revenue in whatever form received or accrued from whatever source. Generally, receipts are “total income” plus “cost of goods sold” and excludes net capital gains or losses. Gross receipts do not include taxes if already included in income, proceeds from transactions between a concern and its affiliates, and amounts collected by a travel agent, real estate agent, advertising agent, conference management service provider, freight forwarder, or customs broker.
      • •  The amount of any forgiven First Draw PPP Loan shall not be included toward any borrower’s gross receipts.
    • For the "Revenue Test" do we add COGS to Revenues?

      Depends on how you define “Total Income.” In the 1120 Tax Form, Total Income is Net Revenues less COGS. If you are not using tax returns, we recommend utilizing the gross revenue figure reported on the income statement of the borrower.