The US Senate is discussing rolling out round two of COVID-19 Paycheck Protection Program (PPP) funds.
Here’s the quick 411 on what you need to know and how to maximize the benefits as a small business owner:
Who’s eligible?
Small businesses that saw a 50% or more decrease in revenue in the in previous quarter
Get Ready to Apply by Gathering Key Documents
– Bank account statements or payroll services reports documenting wages paid to employees
– Federal + state payroll tax filings
– Business mortgage account statements showing interest paid and proof of payment
– Business rent or lease payment statements and proof of payment
– Business utility bills and proof of payment (electric, gas, water, transportation, telephone, internet)
More Flexibility with Funds
The PPP funds to be released in this second stimulus package gives biz owners more freedom to choose how to put money to work in their business. And another bonus — the government may be automatically forgiving loans of $150,00 or under, as with the previous PPP funds, giving you even more incentive to capitalize on the opportunity.
Should you apply for loan forgiveness for your business’s already-utilized PPP funds?
Because the government will likely grant automatic loan forgiveness of loans of $150,000 or less, don’t rush to apply for loan forgiveness just yet. You don’t want to waste the time if they’ll end up getting automatically forgiven anyway. Plus, you have ten months after the converting period to apply for forgiveness – and the loan is interest free! Until it’s clear how these loans will be affecting taxes, it’s best to hold off until we get more information from our governing bodies.
As you continue to navigate your small business through COVID-19, we’re here to help – not only with educational resources such as these, but with tangible deliverables to put to use to safeguard your business. Contact us today for custom-drafted COVID-19 liability waivers.
