PPP Application and Forgiveness - New Deadlines.
Please note, though the PPP application deadline is being extended, you only have until May 31, 2021 to get your application submitted to the SBA. After that, the SBA will only process existing applications that have already been submitted, until the PPP deadline of June 30, 2021.
New rules - As of March 3, 2021, applicants who report their income with IRS Form 1040 Schedule C (i.e., most independent contractors, 1099 workers, and sole proprietors) will be able to use their GROSS (instead of net) profits to determine their max loan amount. This can make a big impact on the amount you can borrow, depending on how much you make and how you have reported your profits. Read more about thelatest 1040 Schedule C/PPP loan rules changes, and see the new rules, and the new PPP application form for Schedule C applicants.
KEY CHANGES - Key PPP updates for 2021 include:
PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs;
PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, destination marketing organizations, among other types of organizations;
The PPP provides greater flexibility for seasonal employees;
Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; and
Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.
Second draw PPP loan qualification and exclusions
In order to qualify for application for a second-draw PPP loan, your business:
Can’t have more than 300 employees, and
Must be able to demonstrate a 25 percent or greater reduction in revenue in 2020 vs. 2019, and
Has received a “first draw” PPP loan and has used, or will use, the full amount of the initial PPP funding on or before the expected date on which the Second Draw PPP Loan is disbursed to you, and
Has used the full amount of your first PPP Loan on eligible expenses under the PPP rules
CALL TODAY AND WE CAN HELP ASSIST YOU IN APPLING FOR THE PPP DRAW 2 OR COMPLETE YOUR PPP FORGIVENESS APPLICATION.
BUSINESS ADVISORY SERVICES LLC 608-347-3010