PPP Application Deadline Extended - Apply Now!April 12, 2021
We would like to give you a “heads up reminder” regarding the government’s PPP loan update, especially as they pertain to a PPP “second draw” qualification. There is a real sense of urgency regarding loan applications because the program may run out of money.
As of April 5th, the Small Business Administration has (according to CNBC) already approved $224 billion of the $292 billion for the program, making only $68 billion available. While that’s still a lot of money, it is expected that this CARES Act program will run dry in the next couple of weeks.
Some companies also qualify for a second PPP loan draw. If you are seeking a second round of PPP loan support, I urge you to hurry and get your application in immediately.
Keep in mind that a lot has transpired in 2020 that will likely impact both your personal and business income tax returns. Now is the time to ensure your PPP forgiveness applications are submitted, and costs used by PPP funds are clearly calculated. It is also the time to make a determination as to whether you qualify for a second PPP draw. Be advised, the new stimulus package signed December 27, 2020, allows taxpayers the ability to deduct those expenses paid using PPP funds. Forgiven loans are tax exempt to the extent they are forgiven. States vary as to the taxability of forgiven PPP loans.
For government contractors some specific guidance has been provided, via a DCAA memo issued January 28, 2021 pertaining to section 3610 of the CARES ACT. Credits/adjustments for government contractors can only occur after PPP loan forgiveness is granted. For many contractors, this means credits will not occur until 2021. If the loan is not forgiven, then no credits apply.
Have you applied for a PPP loan if you qualify?
Review your eligibility now and apply if you meet the criteria. One of the key qualifications for a second draw is a quarter in 2020 that showed at least a 25% reduction in revenue vs. 2019. Of course, a drop of 25% for the entire year of 2020 vs. 2019 also meets this requirement. The deadline for either of the PPP loans is May 31, 2021.
Please give this immediate attention before the program ends. As explained, the PPP loan funds will be exhausted much earlier than the extended deadline.
Call us at 603-881-8185 if we can be of help with your PPP loan. You can also email us at firstname.lastname@example.org.