A Complete Guide For The Second Round Of PPP?

Posted by Cleareye on February 18th, 2021

Once again on January 11, a new covid relief bill was signed changing the Paycheck Protection Program. The highlight of the second round was - some business will hold the eligibility for another round. The applications for the second round are entirely open. But the program is secluded as of March 2021. Therefore, it’s advised to small business owners to apply as soon as possible or get help from the PPP Loan Forgiveness Solutions for Lenders.

Like the previous round of paycheck protection program funding, the second round is designed to help the small business owners. So that they can stay afloat or can rebuild in the year 2021. The process of application is much more a more straightforward process, unlike the first round. It is also necessary to keep in check with the lender according to the process. This article will help you know each and everything for the second round of Paycheck Protection Program loan. Let us begin.

What’s new with this round of PPP Funding?

In this round, there has been an allocation of a total of 284 billion dollars to the Paycheck Protection Program. The program has been extended to March 31, 2021. The below mentioned are the up to date details for this upcoming round of funding for 2021. Make sure that your application is set according to the given points.

• The availability of businesses with under 300 employees.

• The eligibility of the Paycheck Protection Program has been expanded.

• The forgiveness for loans under 0K comprises a new, simplified one-page direction.

• The eligibility for the expenses for the forgiveness has been expanded.

• Now, the borrowers can choose a certain period, that is any period between eight and 24 weeks.

• A proper clarification has been made, which indicates the interest rates on Paycheck Protection Program loans are non-compounding and non-adjustable.

• Along with that, the clarification for forgiven loans are not taxable, and forgiven expenses are tax-deductible. To ease this out, a business owner can quickly get help from the PPP loan forgiveness solutions.

The usage of PPP Funds 

There is some usage of funds for this program that is presented to assist the small business. So that they can cover even more of their unexpected costs as per the result of the pandemic. The expenses for which the PPP loans can come into use are :

• Utilities

• Software or cloud computing costs for business operations NEW

• Costs related to property damage and vandalism or looting due to public disturbances not covered by insurance or other compensation NEW

• Payroll costs

• Insurance benefits

• Employee salaries and commissions

• Rent payments and mortgage payments

• Costs of the supply of goods that are essential to business operations NEW

• Covered worker protection expenditures that help adapt business activities to COVID safety requirements NEW

We have also provided you with a list of complete documents to prepare for the Paycheck Program Protection for the second round. Or a small business owner can take the help such as PPP loan forgiveness solutions as well. The below-given information includes the complete documentation to ensure a smoother application process-

• The summary of the Payroll Report with the 12-month average calculation.

• If your company bears employees, then the calculation of 941 Forms for four quarters.

• Return of Tax for the most recent year

• Bank Statements of at least three months

• An extra copy of the Driver’s license

• Quarterly stated Profit and Loss Statements for loans above 150,000 dollars.

• Name, Address, and SSN/EIN of any individuals or entities with 20% or greater ownership.