Round two PPP loans asks the borrower to show they have had a reduction in revenue of at least 25%. In some cases this might bring a company below the $1 million mark, but not sure if the PPP SBA application is enough to document that.
Here's an example: a company in 2019 had revenue of $1.1 million. Their new PPP application shows in Q2 2019 their revenue was $260,000 and then in Q2 2020 the revenue for the period same was $75,000. They don't provide 2020 complete tax returns and there is nowhere on the PPP application to provide their total revenue for 2020.
Would you use revenue code 1 for under $1 million? or stick with code 2 based on 2019 pre COVID revenue?
Different example: You don't have prior knowledge of the companies revenue. The PPP application shows their Q2 2019 revenue was $150,000 and their Q2 2020 revenue is $$75,000. Quarterly payroll is $33,000. From this information it's clear this is a business with less than $1 million in revenue, but is this information enough to prove it?