1. PPP Loan Forgiveness Help Center
  2. Forgiveness Application Questions

Which reference quarters should I use to show my 25% or more revenue reduction? Can I use an annual comparison instead?

The reference quarters you use to show your 25% revenue reduction will depend on how long you have been in business. Read below to understand which quarters you should use or how you might be able to use an annual comparison instead of quarterly.

If your business was in operation during the first and second quarters of 2019:

  • Choose a quarter of 2020 when your gross receipts were at least 25% lower than the same quarter of 2019, and select those two quarters for comparison
    • For example, a "2020 quarter" of 2Q 2020 and "reference quarter" of 2Q 2019.

If your business was not in operation during the first and second quarters of 2019, but was in
operation during the third and fourth quarters of 2019:

  • Choose a quarter of 2020 when your gross receipts were at least 25% lower than during either the third or fourth quarters of 2019, and select those two quarters for comparison
    • For example, a "2020 quarter" of 4Q 2020 and "reference quarter" of 3Q 2019.
If your business was not in operation during the first, second, and third quarters of 2019, but was
in operation during the fourth quarter of 2019:
  • Choose a quarter of 2020 when your gross receipts were at least 25% lower than the fourth quarter of 2019, and select those two quarters for comparison.
    • For example, a "2020 quarter" of 3Q 2020 and "reference quarter" of 4Q 2019.

If your business was not in operation at all in 2019, but was in operation on February 15, 2020:

  • Choose a quarter among the second, third, or fourth quarter of 2020 when your gross receipts were at least 25% lower than the first quarter of 2020, and select those two quarters for comparison.
    • For example, a "2020 quarter" of 4Q 2020 and "reference quarter" of 1Q 2019.

If you prefer to compare annual gross receipts in 2020 with annual gross receipts in 2019 – instead of comparing quarters – you may do this, as long as you were in business in 2019.

  • Select "Full year 2020" and "Full year 2019" in the revenue reduction section of your forgiveness application.