06 Jan The Paycheck Protection Program Is Back
CPAs in Boca Raton were challenged last year when it came to guiding their business clients through the ever-shifting sands of the Paycheck Protection Program – commonly referred to as PPP. The process should be much easier for small businesses in Boca Raton and for the accountants who assist them this year as a second round of PPP loans authorized under recent Covid-19 relief legislation opens.
As with the loans issued last year, this new round of PPP loans is intended to help small businesses keep their employees on payroll.
Funds received through the program can be used to cover:
- Payroll costs, including benefits
- Mortgage interest
- Worker protection costs related to COVID-19
- Uninsured property damage costs caused by looting or vandalism during 2020
- Certain supplier costs and expenses for operations.
If the funds are used for eligible expenses as stipulated in the loan agreement and if the business meets the employee retention criteria that are a key point of the program, the SBA will forgive the loans.
- Second Draw PPP Loans: If you received a PPP loan last year and have used all of the funds and have used them for eligible expenses (payroll, utilities, mortgage interest, etc…), you are eligible to apply for what the Small Business Administration is referring to as a Second Draw PPP loan beginning on Jan. 13, 2021.
- First Draw PPP Loans: If you were unable to qualify for a PPP loan last year because you had not been in business long enough or for some other reason, you may now be eligible. Boca Raton CPA Dan Robinson will be happy to help you determine if you qualify and how much you might be eligible to receive. Applications for what will still be considered First Draw PPP loans, even though they are part of a subsequent relief package will be accepted beginning the week of Jan. 11, 2021.
For more information about the new round of PPP loans, contact Boca Raton CPA Dan Robinson.