This past weekend I joined a Facebook Live from Life is Good in Chester County that further explained more about the Paycheck Protection Program (PPP) 2.0. Small Businesses now have more relief available to them. Our nation's small businesses are facing an unprecedented economic disruption from the effects of the Coronavirus. This next round of PPP loans comes with more and different regulations for small businesses to watch out for. The small business aid that was approved in December 2020 was for over $300 billion and is aimed at businesses that sustained a 25% revenue loss in any calendar quarter of 2020 as compared to the same period in 2019. Businesses that are publicly traded are not eligible for the PPP Loan. Out of that amount, $41 billion is set aside for the small business owners that are in dire need. Specifically, businesses that have ten or fewer employees as well as small microbusinesses and restaurants will benefit from these loans.
In order to apply you would need to do it through a bank. They should have an application Portal to apply. There is more forgiveness available for PPP 2.0. Sixty percent of the loan must be used for payroll and the remainder may be used for operational expenses (including services needed to run your business and software applications). For more information on the guidelines contact your Accountant or feel free to view the entire Facebook Live and reach out to Suzanne Barba with questions.
I hope you found this to be helpful. There is relief out there so don't give up. Let me know if I can be of any assistance. I would love to hear from you.
Margherita C. Amplo
President, MCA Consultants