According to guidance issued by the SBA, a seasonal business’ payroll in February or March of 2020 may not be representative of their payroll during busy seasons. Guidelines note: “Without the ability to use an alternative base period, many summer seasonal businesses would be unable to obtain funding on terms commensurate with those available to winter and spring seasonal businesses.” Because a requirement of getting a PPP loan was that a borrowing business must have been in operation on February, 15, 2020, the SBA guidance for seasonal businesses states that a seasonal business will be considered to have been in operation as of February 15, 2020, if the business was in operation for any 8-week period between May 1, 2019 and September 15, 2019. [see SBA guidance on seasonal employers]
Articles in this section
- Can I use the SBA PPP Direct Forgiveness portal when applying for forgiveness?
- Which NAICS codes are accepted by the SBA?
- What qualifies as “gross receipts” for my business when I am entering amounts for my revenue reduction?
- If I have two PPP loans in 2021, can my Covered Periods for the two loans overlap?
- I submitted my first draw forgiveness application to Scratch already - why won’t it let me access my second draw application yet?
- What quarters or reference periods can I compare to show I experienced a 25% or more revenue reduction?
- Why do I need to upload documentation to show my 25% or more revenue reduction?
- Which reference quarters should I use to show my 25% or more revenue reduction? Can I use an annual comparison instead?
- What documentation do I need to provide to corroborate that my entity sustained at least a 25% reduction in gross receipts?
- If I have self-employment income and file a Form 1040, Schedule C or F, which of my nonpayroll costs are eligible for forgiveness?