What’s next for Paycheck Protection Program (PPP) in 2021
There are new ground rules in the second round of the Paycheck Protection Program (PPP) rolled out by the federal government in January.
The focus of PPP remains to serve small businesses that are applying for a first-time loan, though businesses that were eligible in the first round and received money can put in for another loan. Also included this time are new fraud protections to prevent those who should not have qualified for loans last year from receiving additional assistance.
Here are some things companies should know:
- The loans are forgivable and cover people who are independent contractors to businesses with 300 workers
- The loan must be used for 60% of a company’s payroll needs with the remaining 40% covering bills like utilities, rent and even Personal Protective Equipment (PPE)
- Qualifying for the updated program now depends on a company’s revenue. IPS recommends that businesses consult with their accountants for next steps
For more on the qualifications, and how and when to apply, learn more at SBA.gov.