New Money On The Table: PPP Restarts on Monday 1/11/2021

Last night (1/8), SBA Announces It Will Restart PPP on Monday, January 11th.

This means there is New Money on the Table.

Timeline

- First Draw PPP Loans opens on Monday, January 11

- Second Draw PPP Loans starts on Wednesday, January 13.

- The PPP will open to all participating lenders shortly thereafter.

You May Be Qualified

Keep in mind, you may be qualified for this New Round of PPP again, even if you already got PPP in 2020. Here is the Qualification for PPP 2nd Draw:

-25-30% gross receipts decline in any calendar quarter of 2020 compared to same quarter in 2019

-300 employees or fewer

-Based on the calendar quarter.

-May be a tiered system where certain loan amounts will only require self-certification and others will have documentation requirements.

-All will be subject to review by SBA, random for smaller.

Take Action Now

The monies available in this new round of PPP funding are on a first-come, first-served basis.

Based on what happened during the first round of PPP last year, we expect this new round of funding will be gone very soon.

So, Don’t procrastinate.

Get your PPP application in place NOW.

We are ready to help

We've helped businesses collectively attain over Millions in PPP & EIDL funding which supported over 350 jobs and working families in 2020.

We have kept educating our business community since March 2020. You can check out our series of articles on this topic here, (or this one, another one here , or a full list here)

We are once again ready to assist business owners in applying for and ultimately secure a PPP loan. If you need any help, have any questions or concerns about the PPP & EIDL process, you can trust that a knowledgeable partner is in your corner.

Important Changes: What's New in this Round of PPP Funding?

We've prepared a quick summary of the critical changes in this new round of PPP funding.

• Owners who received PPP loans in the first round are eligible.
• Businesses in accommodation/food service have a max loan amount of 3.5x average monthly payroll (prev. was 2.5x for all industries)
• Max loan amount is $2 Million (prev. was $10 Million)
• Forgivable uses of the loan now include operating costs, property damage, worker protection expenses, and supplier costs.
• The SBA can extend the forgiveness period to 24 weeks (prev. was eight weeks)
• If the loan amount is less than $150K, borrowers are eligible for a 1-page loan forgiveness process.
• Public companies are not allowed to participate.
• Owners in bankruptcy are now eligible.
• Existing EIDL grants will no longer reduce your qualifying PPP loan amount.

If you want to walk through your options and new changes, let's talk. Book your appointment here.

Talk Soon,

Steven

Disclaimer: GU&CO CPA has achieved positive results for its clients, but the successes of our top clients are not typical. Because past performance is not a predictor of future success, you may have more or less success depending on many factors, including your background, experience, work ethic, client base, and market forces. Additionally, at times we may discuss the law or new and pending legislation. Please know our understanding of it is constantly changing, and you cannot and should not rely upon these communications for legal, financial, or accounting advice. For the latest updates, set up a time here.

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