All About the Latest Paycheck Protection Program (PPP)
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The PPP Reopen
Who’s Eligible for Latest PPP?
Business had to have been in operation on Feb. 15, 2020 or earlier. Employer can have a maximum of 500 employees. The applicant can be independent contractor, self-employed individual, or sole proprietor. Tax-exempt nonprofits are now eligible. Housing cooperatives or destination marketing organizations with no more than 300 employees are now eligible. News organizations with no more than 500 employees per location are now eligible.
The employer can have no more than 300 employees. The business has to have used up all funding from first loan on eligible expenses by the disbursement date of the second loan. Applicants must now show that gross receipts from any quarter in 2020 were 25% less than the gross receipts in the same quarter in 2019. For businesses that were in operation all four quarters, a reduction in annual receipts of 25% or greater in 2020 versus 2019 also qualifies
Minority, Under-served, Veteran and Women-Owned Businesses
How Much Can You Borrow From PPP?
Add up payroll costs from 2019 or 2020 Subtract any compensation paid to an employee in excess of $100,000 on an annual basis Divide this total by 12 to calculate the average monthly payroll costs Multiply the average monthly payroll costs by 2.5 (or 3.5 for qualifying hotels and restaurants) Add the outstanding amount of an Economic Injury Disaster Loan (EIDL) made between Jan. 31, 2020 and April 3, 2020 that a borrower seeks to refinance, not including any amount that’s an “advance.”
How Can PPP Funds Be Used?
Payments for any business or cloud computing software that facilitate operations Costs related to property damage, including damage from looting and vandalism that occurred during 2020 if insurance or other compensation was insufficient. Expenses related to worker protection from the coronavirus pandemic. These include renovations of a drive-through window facility, air ventilation or filtration system, physical barriers such as sneeze guards, expansion of outdoor space, and health-screening capabilities.
Will PPP Loans Be Forgiven?
Will PPP Funding Be Taxed?
How to Apply For PPP?
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