There is additional money available from the Small Business Administration (SBA) for a new round of Paycheck Protection Program (PPP) loans courtesy of the Emergency Coronavirus Relief Act of 2020.
Here's what you need to know:
Requirements to Take Out a 2nd PPP Loan
If you received PPP loan proceeds in 2020, and wish to apply for a 2nd PPP loan, here are the qualifications:
Requirements to Take Out an Initial PPP Loan
If you didn’t take out a PPP loan in 2020, but wish to do so now, you can still apply for a PPP loan.
For an initial PPP loan, your business must have been open on or before February 15, 2020 and have 500 or fewer employees or independent contractors for whom the business paid salaries, compensation and payroll taxes.
Loan Forgiveness for the New PPP Loans
As with the first round of PPP loans, the new loans are eligible to be entirely forgiven is certain requirements are met. There is even a simplified application for forgiveness If the loan being applied for is less than $150,000. The maximum amount of a new round of PPP funding is $2 million.
What you need to do: Contact your banker as soon as possible. The last day to apply for and receive a PPP loan is March 31. As with the first round of PPP loan funding, funds are limited are expected to quickly run out.
Last updated: 01/11/2021
GILLILAND & ASSOCIATES PC
7600 LEESBURG PIKE, STE 320E | FALLS CHURCH, VA 22043
Phone: 703-448-9121 | Fax: 703-893-6485
The Covid-19 Tax Resource Portal (herein after referred to as "Site") is made available as a service to our clients and others for informational purposes only. These materials and information should not be considered as, or a substitute for, accounting, tax or financial advice. While it is hoped the materials provided here are helpful as background material, it is not warranted either expressly or implied as accurate or complete. You should refrain in taking any action based upon the information provided here until you have received proper counsel.
In addition, you understand that any links to any other web site or services does not constitute endorsement of or warranty of any service, product or information provided on their site(s). These links are provided for convenience only.
While our intent is to make transmissions to and from this web site secure, it is understood that no warranty of security can be made and that unforeseen security breaches by "hackers" is a possibility, however slight.
Reproduction of part or all of the contents on this site in any form is prohibited other than for individual use only. All content on this site is copyright protected and/or trademarked as appropriate and may not be copied, duplicated or altered in any way.
In no event shall GILLILAND & ASSOCIATES PC, its affiliates or suppliers of any content on this site be liable for any indirect, incidental, special, punitive damages or consequential damages of any kind, or any damages whatsoever arising out of or related to your use of the Site, the content and other information obtained therein.
© 2020 - 2023. All Rights Reserved.