For all entities other than those satisfying the conditions set forth below, Applicants must demonstrate that gross receipts in any quarter of 2020 were at least 25% lower than the same quarter of 2019. Alternatively, Applicants may compare annual gross receipts in 2020 with annual gross receipts in 2019; Applicants choosing to use annual gross receipts must enter “Annual” in the 2020 Quarter and Reference Quarter fields and, as required documentation, must submit copies of annual tax forms substantiating the annual gross receipts reduction.
Gross receipts:
The amounts required to calculate gross receipts varies by the entity tax return type:
The amounts required to calculate gross receipts varies by the entity tax return type:
- For self-employed individuals (IRS Form 1040 Schedule C): line 3 (If you file multiple Schedule C forms on the same Form 1040, you must sum across all of them)
- For partnerships (IRS Form 1065): line 1c
- For S-Corporations (IRS Form 1120-S): line 1c
- For C-Corporations (IRS Form 1120): line 1c
- LLCs: Use one of the above
- B Corporations: Use line 1c from either IRS Form 1120 or 1120S
If an Applicant’s gross receipts include any of the following, the amount associated with the following should be subtracted from gross receipts:
- Paycheck Protection Program (PPP) loan (First Draw PPP Loan or Second Draw PPP Loan);
- SBA Section 1112 payments;
- SBA Economic Injury Disaster Loan (EIDL) loan, EIDL Advance, Targeted EIDL Advance;
- Randolph-Sheppard Act Financial Relief and Restoration Payments (FRRP) Appropriation;
- Any state and local small business grants (via CARES Act or otherwise);
- Taxes collected for and remitted to a taxing authority if included in gross or total income, such as sales or other taxes collected from customers (this does not include taxes levied on the concern or its employees);
- Proceeds from transactions between a concern and its domestic or foreign Affiliates; and
- Amounts collected for another by a travel agent, real estate agent, advertising agent, conference management service provider, freight forwarder or customs broker.
All other items, such as subcontractor costs, reimbursements for purchases a contractor makes at a customer’s request, investment income, and employee-based costs such as payroll taxes, may not be excluded from gross receipts.