A few PPP pointers
- Determine if you are eligible, especially for those seeking a 2nd advance, for those rules are more restrictive. In addition, applicants are required to certify/prove that they need the funding; that the loan is “necessary” for them to continue to operate.
- Run the numbers, to determine the amount you may be able to seek, based on the revised guidelines issued 1/6/21. Some entities will benefit more than others.
- Revisit your PPP forgiveness application, if you received funds in the first round, to be sure that you have properly documented how the funds were used based on the revised use of proceeds.
- Recalculate business expense deductions, based on the revised rules.
- Call your lender, if you anticipate either seeking a 2nd loan or want to revisit the amount received from your first loan. Under the revised rules, many firms may find it advantageous to seek an increase in their first loan vs. seeking a 2nd round of funding. However, it is not known if lenders will create a portal for increasing existing PPP debt or require their borrowers to seek a 2nd loan.
- More information and revised forms can be found here: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program#section-header-0