Paycheck Protection Program 2.0 Second Draw Income Reduction Calculator

Under Paycheck Protection Program 2.0, part of the stimulus package passed in December 2020, you need to show a 25% reduction of income for at least one quarter relative to the previous year.

This tool will help you. Follow these steps:

Select which quarter you started your business
Enter your quarterly income totals for 2019 and 2020
Check the box under “Important” to verify you've entered everything correctly.
Check out the results at the bottom.

Please seek a professional for advice related to your own business situation.

I am not a tax or financial professional nor am I affiliated with any government entity. I'm not even a programmer, so I can't completely guarantee the results.

There's nothing official about this. It's only a tool to help you get a picture of how your income relates to the qualifications of the PPP Second draw, as I understand them based on documentation from the SBA and other sources.

This is not meant to be professional or business advice in any way. It's just a tool.

If you're looking for a lender for the Paycheck Protection Program

I won't try to tell you whether or not to apply. That's a personal and business decision you have to make.

If you have a banking relationship for your business, you can certainly start with your bank. If you're not sure where to begin, we've partnered with Womply. Womply is not a lender. They're a verified agent with several SBA approved lenders. What they can do is connect you with a lender who can help you get your application processed.

This is a referral link. I may receive compensation that helps me keep this website operating. You can start your application process with Womply.

PPP Income Qualifier

Paycheck Protection Program Income Qualification Tool

This tool is designed to help independent contractors, especially those with gig economy apps like Doordash, Uber and Uber Eats, Lyft, Instacart, Grubhub, Postmates etc. to identify whether they qualify under the ‘loss of income' stipulations for second draw loans under the Paycheck Protection Program as updated in December 2020.

By using this tool, you verify that you understand and agree to the following: This is simply a tool intended to help you get an idea if you meet one qualification of the PPP program. The tool is based on my understanding of how the legislation sets out qualifications. You understand that there are no guarantees as to the accuracy and that results of this tool do not guarantee that you do or do not qualify for funding. You also understand that neither this website nor its author is related in any way to the SBA, IRS, Department of Treasury or any other government entity.

When did you start your business as an independent contractor? (Choose only 1) *

Before December 31, 2018

First Quarter 2019 (January, February, March)

Second Quarter 2019 (April, May, June)

Third Quarter 2019 (July, August, September)

Fourth Quarter 2019 (October, November, December)

Between January 1 and February 15, 2020

After February 15, 2020

Unfortunately, you do not qualify for the Paycheck Protection Program

The Paycheck Protection Program was designed for existing businesses who were hurt by the pandemic. Businesses need to demonstrate a loss of income compared to before the pandemic and thus would need to demonstrate income received prior to February 15, 2020.

Enter your gross income for 2019 by quarter

Your gross income is the total money received before any expenses or other costs

1st Quarter (Jan Feb Mar) 2019

2nd Quarter (Apr May Jun) 2019

3rd Quarter (Jul Aug Sep) 2019

4th Quarter (Oct Nov Dec) 2019

Enter your gross income by quarter for 2020

1st Quarter (Jan Feb Mar) 2020

2nd Quarter (Apr May Jun) 2020

3rd Quarter (Jul Aug Sep) 2020

4th Quarter (Oct Nov Dec) 2020

Important

Verify that you have entered all of your information

I have entered quarterly amounts and I understand that results are based on the information entered.

Businesses Started in the first part of 2020

A business that started in the first part of 2020 but before February 15 may qualify for the latest round of PPP funding.

Businesses need to demonstrate a year over year reduction of income or a quarter of at least 25% compared to the previous year. For businesses that started early in 2020, they need to demonstrate that gross income for one or more of the 2nd, 3rd, or 4th quarters was at least 25% lower than the gross income for the first quarter.

Your gross income for the lowest earning quarter of 2020 was

If gross income for the 2nd, 3rd, or 4th quarters of 2020 were all higher than 1st quarter 2020, You will not qualify for the income reduction requirement for second draw loans under the PPP

You may meet the reduction of income qualification for second draw PPP loans, as you had a loss of

Compared to your First Quarter Earnings of

You will not likely qualify for a second draw of PPP loans as your loss of earnings of

which is lower than the minimum loss of 25% when compared to your first quarter earnings of

Businesses Started in the second half of 2019

A business that started in either the third or fourth quarter of 2019 may qualify for a second draw of PPP Loans. At least one quarter of gross income in 2020 should be lower than either of the last two quarters of 2019.

The Lowest Quarterly Amount you earned in 2020 was

You will not likely qualify. Your lowest earning quarter of 2020 was:

And that amount was higher than your highest earning quarter in 2019:

You will not likely qualify for a second draw of PPP loans as your loss of earnings of

which is lower than the minimum loss of 25% when compared to your highest 2019 Quarter of

You may qualify for a second draw of PPP loans. You had a revenue loss of

loss compared to your best quarter of 2019, which exceeds the minimum 25% loss. Your best quarter of 2019 earnings were

Those in Business Prior to the Second Half of 2019

If your gross income in 2020 was at least 25% lower for any given quarter than the same quarter of 2019, you may qualify for a second draw from the Paycheck Protection Program. If you started your business in later 2019 or the earliest parts of 2020, there are variations on how this works.

1st Quarter Earnings 2020

1st Quarter Earnings 2019

You showed a first quarter loss of greater than 25% compared to 2019. You may meet the PPP loss of income qualification based on your first quarter loss of

You had greater earnings in the first quarter of 2020 than you did for the first quarter of 2019 which will not qualify you for PPP funding.

Your first quarter earnings do not demonstrate a 25% loss in income. You may not qualify as your earnings in the first quarter of 2020 only had a loss of

Second Quarter Results

2nd Quarter Earnings 2020

2nd Quarter Earnings 2019

You had greater earnings in the second quarter of 2020 than you did for the second quarter of 2019 which will not qualify you for PPP funding.

Your second quarter earnings do not demonstrate a 25% loss in income. You may not qualify as your earnings in the first quarter of 2020 only had a loss of

You showed a second quarter loss of greater than 25% compared to 2019. You may meet the PPP loss of income qualification based on your first quarter loss of

Third Quarter Results

3rd Quarter Earnings 2020

3rd Quarter Earnings 2019

You had greater earnings in the third quarter of 2020 than you did for the third quarter of 2019 which will not qualify you for PPP funding.

Your third quarter earnings do not demonstrate a 25% loss in income. You may not qualify as your earnings in the first quarter of 2020 only had a loss of

You showed a third quarter loss of greater than 25% compared to 2019. You may meet the PPP loss of income qualification based on your first quarter loss of

Fourth Quarter Results

4th Quarter Earnings 2020

4th Quarter Earnings 2019

You had greater earnings in the fourth quarter of 2020 than you did for the fourth quarter of 2019 will not qualify you for PPP funding.

Your fourth quarter earnings do not demonstrate a 25% loss in income. You may not qualify as your earnings in the first quarter of 2020 only had a loss of

You showed a fourth quarter loss of greater than 25% compared to 2019. You may meet the PPP loss of income qualification based on your first quarter loss of

Based on the information you entered, you do not appear to qualify as having a sufficient loss of income to qualify for the second draw of the Paycheck Protection Program

You need to have shown at least a 25% from one quarter in 2020 compared to the same quarter in 2020. None of the information you entered indicates such a loss.

Based on income amounts you entered, you may qualify for the second draw on the Paycheck Protection Program

The information you entered indicates that for at least one quarter in 2020, you earned less than in the corresponding quarter for 2019.

Paycheck Protection Program Articles

Articles published at EntreCourier.com about the Paycheck Protection Program, starting with the CARES Act early in 2020, and about the renewal of the PPP program with the latest stimulus package signed December 27, 2020.

How to Apply for Paycheck Protection Program (PPP) Grant as an Independent Contractor

The vast majority of independent contractors who apply for PPP funding are denied. Many of those are because of how they are applying. Good attention to detail and getting the right information are essential to being approved for the Paycheck Protection Program advance grants and loans. These ten steps can help improve your chances of approval