PPP Second Draw Loans
PPP Second Draw Loans (PPP #2)
Camps can get 3.5X the average monthly payroll! That’s an increase from 2.5x in PPP#1. (The bill text says that it is the average monthly payroll using the full year of 2019, not the any 12-week seasonal calculation. This is possibly an oversight and SBA may allow the seasonal calculation for 3.5x). As of now, choose either 2.5x seasonal 12 week calculation or 3.5x annual 12 month calculation.
Camps need to be classified as a NAICS code beginning with 72. Most camps are 721214. If you are part of a larger org, you likely aren’t eligible for this larger amount. Days camp are typically not in category 72.
Eligible if you had a 25% reduction in revenue during a quarter in 2020, compared to 2019.
Forgiveness period will be the date you receive the loan through 24 weeks.
Camps may want to consider delaying finalizing their loan, to maximize the 24 weeks to cover summer payroll and to take full advantage of the Employee Retention Credit in 2021.