The Paycheck Protection Program (or PPP for short) is a relief program that started in 2020 by the Federal government to aid businesses that were impacted by COVID-19. With the continuation of the virus into 2021, they have done some new things with the program to continue helping those in need. That includes providing a second draw of the PPP Loan.
Those who missed out on getting the first draw of the PPP monies before August 8, 2020, now have the opportunity to apply for a second draw of those funds. The money is first come, first serve and closes March 31st, so you will not want to wait on this. You qualify for the PPP if any of the following are true:
- You file your taxes on Schedule C of your tax return. Businesses that file on Schedule C include independent contractors (often called 1099 folks), single-member LLCs, proprietorships, and statutory employees such as life insurance salespeople.
- You are a general partner in a partnership, but the partnership asks for and receives the money based on your and the other partners’ combined self-employment incomes, as adjusted.
- You operate as an S corporation.
- You operate as a C corporation.
- You are the only worker in the business—and if you have employees in the business, you qualify on both your ownership worker status and your employees’ W-2 status.
Do not think of the PPP as a loan – it is more like a cash infusion. A loan is required to payback, the PPP can be forgiven and therefore does not need paid back.
To apply for the second PPP draw:
- Contact your local SBA lender – use this link to find lenders in your area: https://www.sba.gov/paycheckprotection/find)
- Use a third-party lender
If you have more in-depth questions about the PPP or how are curious how CPA On Fire can help your business grow exponentially, please give us a call at 419-559-8775 or fill out our contact form and we will be in touch.