Updates on PPP

Did you miss out on the first and second rounds of PPP loans provided by the US Government as stimulus checks for small businesses because you assumed it was a loan, right? What if I tell you that the PPP loans aren’t just tax-free monies but can also be 100% forgiven if you are eligible for it?

The paycheck protection program (PPP) is a loan program to provide small business grants. It was established by the US Federal Government under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

Here is how it works:

  • You acquire the PPP loan.
  • If you’re self-employed or in a partnership, you spend at least sixty percent of your PPP loan proceeds on payroll (including salary to yourself), while using the rest of the money for other expenses like utilities, interest, depreciation, purchases, and worker protection.
  • If you have kept your employment rate and wages stable, you can partially or fully get your PPP loan forgiven by applying for PPP loan forgiveness.
  • Any expenses that you’ve paid through your PPP loan proceeds are deductible on your tax return too.

The Covid Relief act is granting up to $35 billion as PPP loans for first-time applicants, out of which $15 billion is set aside for businesses in low-income areas earning $250,000 or less, having fewer than 10 employees, and applying for the first time.

New Deadline:

You can apply for the second round of PPP loans by March 31, 2021. Since the grants are made on first-come, first-served basis, stop delaying and get your application in place now.

We would love to help you with securing the aid that you deserve. Feel free to reach out to us at shaan.afridi@shaancpa.com.