On December 21st, 2020, Congress passed a $900 billion COVID-19 relief bill. A week later, the bill was signed into law by President Trump. A comprehensive package, the latest COVID-19 bill includes a new round of Paycheck Protection Program (PPP) loans through the Small Business Administration (SBA).
If your business is closed or operations are significantly hindered due to the COVID-19 pandemic, you may be eligible for a fully forgivable loan through the second round of the Paycheck Protection Program. Here, our Atlanta PPP loan assistance consultants highlight four key things small business owners should know about the latest COVID-19 relief package.
1. Congress Allocated $284 billion in Additional PPP Funding
The new COVID-19 relief package includes approximately $325 billion to support small and mid-sized businesses. As reported by the Journal of Accountancy, $284 billion has been allocated directly to the SBA for PPP funding. Similar to the first round of PPP loans, this is a first-come, first serve program. Qualified businesses should apply as soon as possible.
2. New PPP Loans are Available to First-Time Applicants and Previous Recipients
PPP2 funding is open to both first-time applicants and previous recipients. In other words, you can apply for a PPP loan regardless of whether or not your small business utilized the program last spring. The eligibility criteria are similar for both first-time applicants and previous recipients of PPP funding. Though, there are some subtle differences.
3. PPP Funding Covers Payroll, Rent, Covered Mortgage Interest, Utilities, and More
Much like the first round of PPP funding, this program is designed to help businesses cover necessary operating expenses. Among other things, your small business may be able to get a PPP loan to assist with:
- Payroll;
- Commercial rent;
- Mortgage interest; and
- Utility payments.
Additionally, the new PPP funding also covers some costs that were not included in the initial program. As an example, business expenditures to comply with COVID-19 related health and safety guidelines may be reimbursed. Further, the new PPP simplifies certain tax issues to ensure full deductibility for qualifying businesses.
4. A Consultant Can Help Your Company With a PPP Application
As long as the program’s requirements are met, PPP loans are fully forgivable. The program provides a financial lifeline to many small businesses that are struggling with the disruptions caused by the pandemic and the government restrictions. If you are seeking PPP funding, it is crucial that you prepare a proper application. A business consultant with experience with the PPP application process can help your small business qualify for the maximum amount of financial support.
Get Help From a PPP Loan Assistance Consultant
At Williams Accounting & Consulting, our top-rated business and accounting team is standing by, ready to help your company get access to all available funding. If you have any questions about PPP loans, we are more than ready to help. Contact us today to schedule a completely confidential consultation. With an office in Atlanta, our business consulting team serves clients in Georgia and beyond. Call 770-964-4100.
