AP NEWS
ADVERTISEMENT
Press release content from KISSPR. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from KISSPR
Press release content from KISSPR. The AP news staff was not involved in its creation.

Everything You Need to Know About PPP Round 2

January 30, 2021 GMT

01/21/2021, LONDON // KISSPR //

The months of pleas from American business owners have finally been answered. Congress has approved a Covid-19 relief package worth $900 billion. Of that package, $284 billion has been earmarked for a second round of PPP.

The PPP or Paycheck Protection Program helped many businesses keep their heads above water during the initial impact of the pandemic. The business law firm Nakase Wade of California Business Lawyer & Corporate Lawyer has published two comprehensive articles; the articles are 1) How to Apply for the Second Round of PPP Loans and 2) Financial Relief and Assistance for Businesses Affected by Covid-19.

ADVERTISEMENT

Limits to Eligibility For a Second PPP Loan

Businesses who received a PPP loan during the first round can only receive a second PPP loan if:

  • They employ 300 or fewer employees. There may be alternative size standards issued in the near future.

  • The business used the entirety of their first PPP loan or have plans to use the remainder.

  • Their gross receipts during one of the first three quarters of 2020 were at least 25% than the same quarter in 2019. If applicants apply after the 1st of January 2020, they may calculate this using quarter 4.

These limitations do not apply to first time PPP borrowers.

At the moment, it is unclear if the first PPP loan requirement of proving that the economic climate is responsible for the necessity of the loan will be included in the application.

Maximum Loan Amount

For businesses applying for a second PPP loan, the loan will be capped at $2 million. First time PPP loan applicants will be capped at $10 million.

The calculations for second PPP loan maximum loan amounts can be calculated by multiplying one of the following by 2.5.

  • The average monthly payroll in the 2019 calendar year, OR

  • The average monthly payroll in the one year period prior to the date of the loan.

ADVERTISEMENT

Maximum Loan Amounts for the Hospitality Industry

Businesses in the hospitality industry with NAICS Code 72, usually hotels and restaurants, may multiply their payroll by 3.5 instead of 2.5 if they are applying for a second PPP loan. They will still be subject to the $2 million cap.

Choose Your Own Covered Period

The covered period is the timeframe in which a PPP borrower must use the funds so that it may be forgivable. In round two, the covered period may be between eight and 24 weeks, whatever the borrower chooses.

Use of PPP Funds

Congress has increased the list of expenses the PPP loans can be used towards. In the first round, a PPP loan could be used only towards rent, mortgage interest, payroll, and utilities. In the second round, it can be used for those and:

  • Covered Property Damage Costs – Any covered costs related to property damage due to 2020’s disturbances. This includes any vandalism, looting, or damaged property that was not covered by insurance or any other compensation offered.

  • Covered Operations Expenditures – Any payments for software, products, or services necessary for the day to day operations of the business. This includes business software, tax software, HR or billing software, cloud services, or inventory tracking software.

  • Covered Supplier Costs – Payments to suppliers whose products or services are essential to business operations or were essential at the time of payment. This also covers any suppliers whose contracts are still in effect from a time when their products or services were essential to the business.

  • Covered Worker Protection Expenditures – Any costs a business incurs to follow health and safety guidance made by a government entity from the 1st of March until the end of the national emergency. This includes costs related to sanitation requirements, PPE, expansion of premises, physical barriers, social distancing measures, drive-through windows, or filtration and ventilation systems.

Tax Treatment

Forgiven PPP loans will not count as taxable income. This doesn’t just count the second round of PPP loans; it includes prior and exiting PPP loans. However, any resulting increase in income tax basis will remain whether or not the PPP loan is forgiven.

EIDL Advances Do Not Reduce Forgiveness

Previous PPP guidelines reduced the PPP loan forgiveness of businesses that received an EIDL Advance by the amount of the advance received. However, under the new Act, PPP loan forgiveness will not be reduced by the amount of an EIDL Advance. The SBA is awaiting guidance whether borrowers in the first round of PPP loans can have their forgiveness amended if it was reduced by an EIDL Advance.

Simplified Forgiveness Applications for Loans Under $150,000

The SBA will simplify forgiveness applications to one page for borrowers of under $150,000. This simplified application will only require the following information:

  • Number of employees retained due to the loan

  • Total loan amount

  • The estimated total of the loan amount spent on payroll costs

All the rules still apply, and self-certified responses will receive a heavy penalty if they are found to be false. All borrowers must still keep their employment records for four years from the date of forgiveness application submission. Any other records relating to the PPP loan and forgiveness application must be kept for three years from the forgiveness application submission.

Eligibility for Section 501(c)(6) Not-for-Profit Organizations

Under the second round of PPP loans, Section 501(c)(6) not-for-profit organizations can apply for PPP loans. Some examples of these organizations are:

  • Chambers of commerce

  • Professional football leagues which are not for profit

  • Real estate boards

These types of organization are only eligible if:

  • They receive less than 15% of the proceeds from lobbying activities

  • Lobbying activities count for less than 15 per cent of the organization’s activities

  • The total cost of lobbying activities is less than $1 million during the tax year ending the 15th of February 2020

  • The organization employs 300 or fewer employees

PPP Loans in Bankruptcy

In the second round of PPP loans, businesses in bankruptcy can apply for PPP loans. These loans will be treated as administrative claims in the bankruptcy case, and anything not forgiven must be paid in full.

Media Contact:

California Business Lawyer & Corporate Lawyer

500 N. State College Blvd., Ste 1100

Orange, CA 92868

Tel: 714-707-3050

This press release is for informational purposes only. The information does not constitute advice or an offer to buy. Any purchase done from this story is done on your own risk. Consult an expert advisor / health professional before any any such purchase. Any purchase done from this link is subject to final terms and conditions of the website that is selling the product. The content on this release does not take any responsibility directly or indirectly.



Source: Story.KISSPR.com



Release ID: 16530


KISS PR PRODUCT REVIEWER COMPENSATION DISCLOSURE 

Pursuant to the Federal Trade Commission’s guidance of the public in conducting its affairs in conformity with legal requirements comprised in 16 C.F.R. § 255  et seq. on the use of endorsements and testimonials in advertising, this  Product Reviewer Compensation Disclosure  is provided by KissPR.com LLC and its affiliated entities (hereinafter referred to collectively as “KISS PR”). This disclosure applies to content displayed on all mobile, desktop, and other online versions of KISS PR’s websites and to those of KISS PR’s distribution partners (hereinafter referred to collectively as “the Websites”) and is provided for the purpose of disclosing the nature of the connection between KISS PR and product reviewers, advertisers, sponsors, endorsers, and other third-parties whose advertisements, sponsorships, endorsements, testimonials, opinions, or other product-related or service-related statements or reviews may appear on the Websites (hereinafter referred to as an “Product Reviewer”). 

This  Product Reviewer Compensation Disclosure  is intended to disclose to you that in consideration of payment of monetary and other compensation from a Product Reviewer, as described below, KISS PR sells various advertising, sponsorships, and marketing campaigns that are featured on one or more of the Websites. 

There is a financial connection related to some of the products or services mentioned, reviewed, or recommended on the Websites between KISS PR and the Product Reviewer that owns, markets, or sells such product or service. If you decide to purchase a product or service featured on one or more of the Websites, KISS PR will not receive compensation related to that purchase from a Product Reviewer but may receive a one-time fee from the Product Reviewer for posting or distributing the product review on or via the Websites.

Further, KISS PR may post or otherwise promote on the Websites content, including editorial content, which may feature third-party products and services (a “Reviewed Product”). This content may contain weblinks to third-party owned or operated web sites where you can purchase Reviewed Product (“Product Link”). If you click on a Product Link and then purchase a Reviewed Product on the linked web site, KISS PR will not receive compensation from the third-party offering the Reviewed Product (the “Vendor”). 

Weblinks on the Websites featuring a Reviewed Product may be added to posts or articles that are not identified on the Websites as comprising or containing paid or sponsored content. In such case, a disclosure statement about the Reviewed Product and the compensation that KISS PR might receive in connection with its purchase by you will be included in such posts or articles. Further, third-party advertisements may be posted on the Websites. Each time you click on such an advertisement, KISS PR may receive compensation from the third-party advertiser, even if you do not purchase any product or service from that third-party.

KISS PR will, subject to the disclaimer of liability set forth below, endeavor to ensure that product or service endorsements appearing in the Websites or in posts or articles distributed via the Websites reflect the honest opinions, findings, beliefs, or experiences of the Product Reviewer as they relate to such product or service. If you have any complaint, concern, or question relating to the content of any such post or article, including alleged infringement of any intellectual property rights, you should address your complaint, concern, or question directly to the Product Reviewer or the Vendor.

NO REPRESENTATIONS OR WARRANTIES; NON-RELIANCE. EXCEPT FOR ANY EXPRESS REPRESENTATIONS AND WARRANTIES CONTAINED IN THIS DISCLOSURE STATEMENT, NEITHER KISS PR NOR ANY OTHER PERSON ON KISS PR’S BEHALF HAS MADE OR MAKES ANY EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY, EITHER ORAL OR WRITTEN, WHETHER ARISING BY LAW, COURSE OF DEALING, COURSE OF PERFORMANCE, USAGE, TRADE, OR OTHERWISE, ALL OF WHICH ARE EXPRESSLY DISCLAIMED, AND YOU ACKNOWLEDGE THAT YOU HAVE NOT RELIED UPON ANY REPRESENTATION OR WARRANTY MADE BY KISS PR OR ANY OTHER PERSON ON KISS PR’S BEHALF, EXCEPT AS SPECIFICALLY PROVIDED IN THIS DISCLOSURE STATEMENT.

DISCLAIMER OF LIABILITY. IN NO EVENT SHALL KISS PR BE LIABLE OR RESPONSIBLE TO YOU OR ANY OTHER PERSON FOR ANY DIRECT, INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL, OR EXEMPLARY DAMAGES OF ANY KIND, INCLUDING WITHOUT LIMITATION, LOST PROFITS OR LOST OPPORTUNITIES, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES IN ADVANCE AND REGARDLESS OF THE CAUSE OF ACTION UPON WHICH ANY SUCH CLAIM IS BASED, INCLUDING, WITHOUT LIMITATION, ANY CLAIM ARISING OUT OF OR IN CONNECTION WITH ANY OF THE CONTENT, INCLUDING, WITHOUT LIMITATION, AUDIO, PHOTOGRAPHS, AND VIDEOS, OF OR THE ACCURACY OF ANY STATEMENT MADE IN OR OMITTED FROM ANY ADVERTISEMENT, SPONSORSHIP, ENDORSEMENT, TESTIMONIAL, OPINION, OR OTHER PRODUCT-RELATED OR SERVICE-RELATED STATEMENT OR REVIEW APPEARING IN THE WEBSITES OR IN ANY POST OR ARTICLE DISTRIBUTED VIA THE WEBSITES.

© 2021 KissPR.com LLC

Media Contact Website: [ KISS PR Brand Story PressWire ] - Email: Media@kisspr.com