GSG’s latest podcast features Alan Spero who discusses the new round of PPP loans and how businesses can take advantage of it.
Back in March 2020, the Paycheck Protection Program (PPP) was enacted to keep people working and businesses running. Unfortunately, the pandemic continued longer than expected and many businesses, even the ones that had gotten the first loans, found themselves still having significant economic hardships. Therefore, in late December, Congress enacted the second round of PPP loans.
The passage of the second round of PPP loans clarified the allowance of the deductibility of expenses used with PPP funding.
Other notable changes in the new round include:
- In order to be eligible, businesses must have under 300 employees, as opposed to the first round, which could have up to 500 employees.
- Initially the PPP loans were as great as $10 million. Under this round of PPP loans, the loans are capped at $2 million.
- Businesses need to show that there was a 25% drop in revenue from 2019 versus 2020, on a quarter to quarter comparison, or on an annual basis.
The new round has also expanded additional expenses that could be used with PPP funds and simplified the process of applying for forgiveness for smaller PPP loans.
This podcast provides a comprehensive overview of the new guidance released regarding the second round of PPP loans. Listen today, and contact us here with any questions.Categories: Tax, Small Business, Tax Planning, COVID-19 Resources