Businesses that opened during the pandemic may not qualify for PPP second draw

Grand Strand

MYRTLE BEACH, SC (WBTW) – Tidal Creek Brewhouse in The Market Common celebrates it’s seventh month in business, but the CEO says surviving 2020 was not an easy feat.

Adrian Sawczuk, co-founder and CEO, opened the brewery in summer of 2020 and received assistance in the first draft of the Paycheck Protection Program.

“Every month, frankly, is a struggle. We need to continue to invest in our business to ensure that we’re viable and to continue,” said Sawczuk.

Sawczuk says he was looking into the PPP’s second draft and learned he no longer qualified.

The COVID relief bill reflected changes to the program’s second draft.

Certain borrowers are now eligible for a second-draw PPP loan of up to $2 million.

To qualify businesses must have fewer than 300 employees, have used or will soon use the entire amount of their first PPP loan, and have experienced a loss in revenue of at least 25% during any quarter of 2020, compared to the same quarter in 2019.

The bill reads also reads “a business or organization that was not in operation on February 15, 2020 shall not be eligible for a loan.”

The program’s first draft was based on employee payroll, but is now based on revenue loss.

“We didn’t open our doors until June 8th. Obviously if we weren’t open for business, we didn’t have any sales, we can’t demonstrate that loss.”

Sawczuk says he confirmed the bill’s changes through his bank and the office of Congressman Tom Rice.

Now he’s asking lawmakers to waive the revenue loss qualification and give new businesses the help they need.

“We want to be here for the long term and we think that if we could get a relief through this PPP qualification on revenue loss for new businesses that would definitely be a step in the right direction,” said Sawczuk.

News13 has reached out to Congressman Rice’s office to learn if he supports expanding the program, but have not heard back.

Stay with News13 for the latest as we learn it.

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