What You Need To Know About PPP2
In a bill signed into law on Dec. 27 of 2020, Congress injected an additional $284 billion more into the Paycheck Protection Program. Small businesses will now have more access to aid as many remain to struggle.
The law not only provides additional loan relief for restaurants and other small businesses, but it caps the size of relief seeking businesses and simplifies the loan forgiveness process for applicants.
Informally labeled as “PPP2,” the new round of funding is available to first-time borrowers and to those who previously received a loan.
There are many important details for business owners to learn about and a helpful article outlining the PPP2 guidelines in-depth is available at The Journal of Accountancy.
There are several call-outs in the bill that appear to be very beneficial to restaurants including:
1. Employee eligibility by location similar to PPP1. (see discussion under Eligibility)
2. Maximum loan amount of 3.5 times the average monthly payroll as compared to 2.5.
3. Affiliation rules do not apply consistent with PPP1.
The application form and guidance will be issued in the days to come and loan applications could start rolling out the second week of January.
“People are going to be very eager to get their hands on that money as quickly as they can,” Greg White, a shareholder, and founder of WGN, PS based in Seattle, Washington, said in an interview with Bloomberg Tax. “It was a gold rush last time. It was a dog fight to get at that money.”
The Alliance to Save the American Dream is a non-profit organization dedicated to three core goals.
1. Develop an Ideas Factory to give small businesses and industries a centralized place to share innovative ideas that must be considered.
2. Build a unique Resources portal for small businesses to go to for answers or resources that address a wide range of issues or challenges.
3. Offer a new networking opportunity for small business owners to connect while also giving them a platform to share their own personal stories.