It’s back! 8 things you need to know about 2nd round PPP loans, Commitment to Diversity, Equity, and Inclusion, $15 billion and $25 billion for first draw and second draw PPP loans, respectively, for borrowers with a maximum of 10 employees, or borrowers in low- or moderate-income neighborhoods applying for loans of less than $250,000, $15 billion for first- and second-draw PPP loans for lending by community financial institutions, $15 billion for first- and second-draw PPP loans for lending by Insured Depository Institutions, Credit Unions, and Farm Credit System Institutions with consolidated assets of less than $10 billion, Costs for business software or cloud computing services that facilitate your business operations, Expenses for personal protection equipment such as masks, gloves, shields, physical barriers, signage, ventilation or filtration systems or drive-thru windows needed to comply with government pandemic requirements, Property damage that resulted from public disturbances not covered by insurance. Before we jump into FTE calculations, let’s take a broader look at the forgiveness requirements for Paycheck Protection Program loans. Ask the financial institution for the cause of the denial. If you answer Yes to question 3 or 4, you may still qualify, but you must include an Addendum on a separate sheet explaining the details. Loan forgiveness documentation also is streamlined; borrowers of less than $150,000 can use a single-page loan forgiveness form as long as they certify they have complied with the program. If the PPP loan application for independent contractors is unchanged for 2021, you will need a tax-ready 2019 or 2020 Schedule C from your personal Form 1040 tax return. And if your business received a PPP loan for under $50,000, you can now submit Form 3508S, which is a single-page application form for PPP loan forgiveness. Why Don't You Have A Side Hustle? 5. While very similar to the first round of forgivable loans, this second round does have some differences. Your application could be denied if you don’t meet the SBA’s eligibility requirements. Must have used their entire first-round PPP loan on eligible expenses. Check Yes or No for all questions on the form. Tax treatment. The first thing to do is to double-check your application for errors, including your Employer Identification Number and other details. Before going into detail on PPP loan forgiveness, I want to provide a quick overview of the PPP loan program.As I said, it was launched in March of 2020 as part of the $2 trillion CARES Act.The program was designed to help businesses get tax breaks, keep employees on the payroll, and cover several other costs to keep their businesses afloat.. By June, the first modification came to the … Anyone required to submit under the Foreign Agents Registration Act. DOWNLOAD A PPP FIRST DRAW LOAN APPLICATION. We make it easy for you to apply for PPP 2.0 funds, even if you don’t bank with an approved SBA lender. The types of expenses you can cover with PPP loans have been expanded. Opinions are the author's alone. struggling businesses during the COVID-19 pandemic, Coronavirus Aid, Relief, and Economic Security Act (or the CARES Act), Paycheck Protection Program: SBA’s New Loan Explained, How Small Businesses Are Handling The Coronavirus Pandemic, The Best Investment Accounts For New Investors, Established businesses with existing revenue, Businesses struggling with cash flow while waiting for customers to pay invoices. Some lenders may require a minimum loan size or an existing relationship with the applicant. We invite readers to respond with questions or comments. The requirements for having your PPP loan forgiven are surprisingly lenient. Subject to eligibility requirements PPP Loans will be available to first-time qualified borrowers and to borrowers who previously received a PPP Loan. With this latest round of PPP funding, businesses — even those that received a PPP loan during the first funding period — will have a second chance to take advantage of the popular relief package. Reasons Why You Might Still Be Waiting on PPP Loan. Indicate your Business Type (Independent Contractors and Sole Proprietors have slightly different document requirements. The maximum loan amount has been cut from $10 million in the first round to the previously mentioned $2 million maximum. See the Association’s full PPP second-draw policy update for a deeper dive into the details and for access to key loan application forms. If you’re applying for a second draw loan, you may be able to skip some of the documentation requirements if you work with the same lender who originated your first PPP loan. Here, we have put together a list of resources to help Liberty’s PPP borrowers get organized around loan forgiveness. 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