![]() ![]() Borrowers will not be required to submit documentation and, instead, will be asked to certify the number of employees that were retained due to their PPP loan, the estimated amount spent on payroll costs, and the total loan value. Loan forgivenessīorrowers with loans less than $150,000 will have a new, one-page application for forgiveness. This applies to current and future loans. The new bill clarifies that expenses paid for using PPP money are tax-deductible, and the loan is not counted as income, so it will not be taxed. Tax-deductibility of PPP forgivable expenses If you have an existing PPP loan from the first round, your covered period will stay the same. Now, new borrowers may select any period between 8 and 24 weeks as their covered period. Previously, borrowers were required to select either an 8-week or 24-week covered period. See this step-by-step guide on applying for a second-draw PPP loan and calculating the 25 percent revenue reduction. Businesses that can demonstrate they have experienced a revenue reduction of at least 25 percent.Those who have used or allocated the full amount of the first-draw PPP loan.Those who have under 300 full-time, part-time, or seasonal employees.If you’re interested in borrowing a second PPP loan, it’s best to check that comprehensive PPP guide we mentioned above for all the details-but the short version is, the following businesses are eligible: Stay tuned!) Who qualifies for a second-draw loan?: (We’ll get into more details below about the calculation differences between different entity types. Second-draw PPP borrowers (those borrowing a second PPP loan) who do file Form 1040 Schedule C and elect to use gross income to make the loan maximum calculationshould use this form.First-draw PPP borrowers (those borrowing a PPP loan for the first time) who do file Form 1040 Schedule C and elect to use gross income to make the loan maximum calculation should use this form.Second-draw PPP borrowers (those borrowing a second PPP loan) who don’t file Form 1040 Schedule C should use this form.First-draw PPP borrowers (those borrowing a PPP loan for the first time) who don’t file Form 1040 Schedule C should use this form.It’s best to use the latest versions, which is what we have linked in the bullets below: There are eight-that’s right, eight!-versions of the PPP first-draw application form, and three versions of the second-draw form. But, we’ll give you the quick version below: New application forms were released on March 3, 2021 To get the details on eligibility, the covered period, tax-deductibility, and how to apply for forgiveness, see this comprehensive guide on PPP round 2. A lot has changed when it comes to PPP loan requirements.
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