Nationwide — The Paycheck Protection Program has reopened with more than $280 billion more in funds, and will initially only be able to community financial institutions that provide funding for small businesses in underserved and underprivileged communities. Several initiatives have already been launched to specifically help African Americans and other minority business owners get a fair chance as many were not able to secure loans during the previous rounds of PPP lending or didn’t apply.
They are also helping to educate small businesses that for this round of funding, there are several interesting new factors that have been implemented. For example:
1) Restaurants and hotels can get bigger loans. They qualify for loans equal to 3.5 times monthly payrolls.
2) There is more flexibility in how the loan may be used and still be forgiven. For any PPP loan to be fully forgiven, at least 60% of the funds must be used to cover payroll expenses. The remaining 40% or less can now be used to cover more business expenses than previously allowed during the initial rounds of PPP lending.
3) The forgiveness process has been simplified. In order to have a PPP loan forgiven, businesses that borrowed $150,000 or less will only need to submit a one-page document that includes the number of employees the business was able to employ as a result of the loan, an estimate of how much of the loan was used for payroll, and the total amount of the loan.
4) Bigger tax breaks for PPP loan recipients. The loans will continue to be tax-free for recipients if they’re used for authorized purposes, and now payroll expenses paid for with the loans can also be classified as tax-deductible items.
The deadline to apply for this round of funding is March 31, 2021. For more details about PPP lending and/or to submit an application for your business, visit PPPLoans.com
For press inquiries, contact info@ppploans.com