The second COVID-19 relief bill on December 27, 2020 has added additional funds for individuals and businesses to support the economy and stabilize businesses hit hardest by COVID-19.
Our friends Dr. Bart Basi and Roman Basi of The Center for Financial, Legal & Tax Planning, Inc. recently published a blog post discussing the key details around this new relief package.
The main question is who is eligible for this round of PPP loans?
All businesses are eligible to apply for a PPP2 loan provided they meet a few criteria. If they did not previously receive a PPP loan, they can apply for a loan if they meet the follow requirements:
- Businesses with 500 or fewer employees that are eligible for other SBA 7(a) loans
- Sole proprietors, independent contractors, and eligible self-employed individuals
- Not-for-profits, including churches
- Accommodation and food services operations with fewer than 300 employees per physical location
If a business has received a PPP loan in the past, they can apply for another one assuming they have 300 or fewer employees, have used or will use the full amount of their first PPP loan and can show a decline of 25% gross revenue in any 2020 quarter compared to 2019.
For many businesses, this second round of PPP means that if they get funding, they can stay open, retain employees and limit their losses.
For more information, check out The Center for Financial, Legal & Tax Planning, Inc.’s post here.