More PPP Guidance Released

More PPP Guidance Released

01/20/2021 Tags: Announcements, In the News, COVID-19, PPP

There’s more government guidance for businesses considering applying for their first or second round of Paycheck Protection Program loans.

The Small Business Administration and Department of Treasury recently released some Q&As to help businesses:

  • Calculate their revenue reduction and payroll costs and
  • Determine the “relevant documentation that [is] required to support each set of calculations.”

Those applying for a first PPP loan can see the new guidance here, and those applying for a second round can see the new guidance here.

Among the questions the new guidance answers:

  • What are gross receipts for the purpose of determining eligibility for a second PPP loan?
  • What documentation is required to prove a business sustained at least a 25 percent reduction in gross receipts.
  • How those who are self-employed either with no employees or with employees calculate their maximum first-draw or second-draw PPP amounts.
  • What documentation farmers and ranchers need.
  • How partnerships apply for their first or second PPP loan.
  • How do S and C corps determine their max loan amounts.
  • How eligible nonprofits apply for their first-draw or second-draw PPP loan.
  • Which instructions apply to LLCs.
  • Which pre-tax employee contributions for fringe benefits have been excluded from IRS Form 941.

Let us know if you have questions about the new guidance or anything else related to PPP.

This communication is intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.

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