Filed under: Uncategorized | Tags: Combs & Company, PPP Loan, Second Round PPP Loan, The Art of Money Matters, Tricia Taitt
Author: Tricia M. Taitt
Congress just passed a new COVID-19 “survival”stimulus package. Changes include the reopening of the $10,000 EIDL grant program and updates to the PPP loan program.
As a reminder, those eligible for the PPP include:
- New borrowers
- Businesses that exhausted their first PPP loans
- with less than 300 employees and;
- that suffered a 25% or more reduction in gross revenue in one quarter in 2020 versus the same quarter in 2019
The second draw PPP loan program works similarly to the first round. Newly added policies include:
- The max loan amount for most businesses at 2.5x the average monthly payroll cost for 2019 or over a trailing 12-month period
- The max loan amount for hospitality and food-service businesses at 3.5 x that average monthly payroll costs for 2019 over the past 12 months
- The list of expenses that qualify for loan forgiveness has expanded to include: operational expenses, supplier costs, PPE and worker protection costs and eligible payroll costs, including group insurance payments
The bottom line:
- Move fast. Get your documents and calculations ready for when lenders make applications available.
- Stay informed. But take some things with a grain of salt. There is a lot of false information out there. Rely on experts and your lender for updates.
- Keep an eye out. As of now expenses paid with PPP loan funds are tax-deductible and the PPP monies are nontaxable income. The IRS may push back against that.
Click here to get some guidance on loan forgiveness for the 1st round borrowers!
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About Tricia & The Art of Money Matters:
The Art of Money Matters is led by its President and Chief Financial Officer, Tricia Taitt, who has a strong track record of managing and improving the financial operations of growth-oriented, small to mid sized companies in both the for-profit and not-for-profit sectors. Ms. Taitt is adept at helping senior leaders decode the numbers so that they can better understand their business and make strategic decisions more confidently.
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