Entrepreneur.Com has excellent detail on second round of PPP in COVID stimulus bill
By CHRISTOPHER P. FINNEY | DECEMBER 23, 2020
We have been looking for details of the calculations of and eligibility for the second round of PPP in the most recent COVID stimulus bill. We found this excellent in article in Entrepreneur.Com here.
Some details from the article follow (note, since the PPP “loans” are forgivable, the word “loan” essentially means “grant” for most eligible businesses):
- A loss of revenue of 25% or greater, for any one quarter — comparing 2019 to 2020. If your firm had swings in revenue or had a pronounced one-quarter loss due to COVID or other causes, you may be eligible even if your annual revenue did not dip by 25%.
- 300 employees or fewer.
- Must have already used or plan to use their original PPP funding.
- Maximum loan limit of $2 million.
- Loans of 2.5 months of payroll, which is the same as the original PPP. We are checking the legislation to see if the loan amount will change based upon increased payrolls from the original calculation (for example, if additional employees were added).
- Restaurants food businesses (we are checking on the meaning of that term) qualify for 3.5 months of payroll as their loan amount.
- Qualifying expenses are expanded from payroll and rent or mortgage payments in the original PPP to now include operating expenses, workplace protection costs to protect employees from COVID-19 and covered property damage.
- Loan proceeds are not taxable and loan expenses are deductible (this is true for the new program and the original PPP payments).
- Loans less than $150,000 have significantly simplified loan forgiveness (a one-page form).
For additional details on second round PPP loans, contact attorney Rebecca Heimlich (513.797.2856) of Finney Law Firm.