The new bill, signed into law on 12/27/2020, has ramifications for your business. Please take the time to watch the Webinar presented below. Besides covering the 2nd round of PPP and changes to the 1st round of PPP, the Webinar provides updates to payroll tax credits, paid sick leave, California small business tax credits and grants, unemployment benefits, and more. A copy of the PowerPoint slides are here.
Of all that was in the bill, the second round of PPP loans and changes to the first round of PPP loans are the two areas that we have been asked about the most. Here are the key items:
2nd Round of PPP:
- There is a 2nd Round of PPP that you can apply for as early as January 11
- Eligibility to apply includes:
- A business with fewer than 300 employees
- Has used or will use the first round of the PPP
- 25% reduction in gross receipts in the 1st, 2nd, or 3rd Quarter in 2020 vs same period in 2019
- Our suggestion for applying, if you qualify, is to stay in contact with your first round PPP bank. They should be sending out updates about when to apply.
Changes to 1st Round of PPP:
- These changes also apply to the 2nd Round of PPP
- Expenses paid with the proceeds of a forgiven PPP are now tax deductible
- Simplified forgiveness application for PPP loans of $150K or less
- EIDL does not reduce the amount of PPP forgiveness
- Expenses are expanded. You can now use the PPP to pay for:
- Certain Operational Expenses associated with payroll, accounting, and human resources
- Costs related to property damage
- PPE and other health related expenses
- Changes to the “Covered-Period”
