With the second round of PPP Loans passing, entrepreneurs are curious if they are eligible to receive it. So for this week’s blog, we wanted to give you a quick rundown of the details of the newest relief bill. If you want a more in-depth look at how the new relief package works, we have a video blog for you to check out or you can hop on the SBA website.
In order to qualify for the second phase, you must meet all the following criteria:
- 300 or less employees,
- Experienced 25% or greater revenue loss in at least one quarter of 2020 when comparing to the same quarter of 2019, AND
- Already used your original PPP money (or use it very soon – the original PPP Plan should be utilized first before utilizing PPP Round 2)
- For online businesses, find your average monthly payroll amount and multiply by 2.5
- Round 2 of the loan is limited to a $2 million cap
What to spend it on?
In order to qualify for 100% forgiveness, you must use at least 60% of the loan on payroll. The other 40% may be used on expenses such as rent, utilities, supply costs, operation expenses, and property damage. It has also been decided that the expenses that you pay with the PPP Loan are tax-deductible, which previously was up in the air.
If you are still unsure if you qualify or if you have questions about specific aspects of the loan, do not hesitate to reach out to us. We are here to help make these unpredictable times easier for you and your business. You can schedule a Free Financial Review to see how our Virtual CFO services could benefit your business – just click the link or call our office at 419-559-8775.