Your new year’s gift is here; the government is offering you additional relief money to cover your coronavirus prevention, preparation and response costs.
The Consolidated Appropriations Act, 2021 includes a second round of the Paycheck Protection Program (PPP) funding with another $284 billion up for grabs. But with a short deadline, your chance for securing additional or first-time money is running out!
Take advantage of this new PPP money now with answers to these frequently asked questions (FAQs).
When is the Deadline?
You’ve got to hurry if you’re going to get your much needed share of this pie. Your completed PPP Round 2 application must be submitted by March 21st. The money is just there for the taking if you know the right steps to correctly apply.
Who is Eligible?
To be eligible for a second draw loan, you must meet ONE of the following criteria:
- You did not receive PPP funding during the first round.
- You had a loss in revenue of 25% or more from at least one quarter of 2020 as compared to that same quarter in 2019.
What is Covered?
The types of expenses your relief money can be used for has been expanded. In addition to payroll, rent, covered mortgage interest and utilities, you can now use your funds for:
- Covered Operations Expenditures: Payments for business software or services for operations, product or service delivery, payroll and billing.
- Covered Property Damage Costs:Costs related to property that was damaged, vandalized or looted during public disturbances in 2020 if these costs were not covered by insurance or other compensation.
- Covered Supplier Costs:Fees for essential goods and supplies.
- Covered Worker Protection Expenditures: Costs may include personal protection equipment (PPE), physical barriers erected for social distancing, expansion of office space (whether indoors or out) ventilation or filtration systems and drive-through windows.
Do You Get a Tax Break?
PPP loans will not be treated as taxable income. Expenses paid with money from a PPP loan that is forgiven are now tax-deductible. This covers not only new loans but also existing and prior PPP loans, reversing previous rules which didn’t allow deductions on expenses paid for with PPP funds.
What Other Updates Are There?
While the original rules still apply regarding employee attrition limits and minimum payroll spending, other significant modifications to PPP loans include:
- Extending the covered period for emergency Economic Injury Disaster Loans (EIDL) grants through December 31, 2021.
- An additional $20 billion for new EIDL grants.
- Allowing employers who receive PPP loans to qualify for the Employee Retention Tax Credit (ERTC) for wages not paid with forgiven PPP proceeds.
What Additional Reporting Rules Apply?
You can’t afford to make even one mistake and get your application denied – or violate reporting requirements. There is help available from accounting expert Manuel “Manny” Cosme. During his upcoming training, “New PPP Round: Secure Money to Protect Your Practice,” he’ll walk you through the EXACT steps of the PPP funding application process and reporting requirements.
Related Online Training Resources
|Cut Practice Liability, Comply with 2021 COVID-19 Employment Laws
||Stop Costly Penalties from Write-Off and Balanced Billing Errors||New PPP Round: Secure Money to Protect Your Practice