Stimulus Package Ppp Loan Forgiveness

In its massive new pandemic relief and stimulus package congress has significantly modified the paycheck protection program ppp to allow for second draws from the program to simplify the loan forgiveness process to provide restaurants access to greater relief and to extend the program through march 2021.

Stimulus package ppp loan forgiveness. Forgiveness is not automatic. The year end stimulus package included significant changes to how the ppp loan forgiveness program works. It simply describes how many employees you were able to retain and how much you spent on payroll costs.

Ppp loan forgiveness is determined based on how the small business client spent the loan. The second largest federal stimulus package of 2020 provides 900 billion in covid relief. Stimulus package expands ppp simplifies loan forgiveness and adds disaster grants.

In its massive new pandemic relief and stimulus package congress has significantly modified the paycheck protection program ppp to allow for second draws from the program. Hampton and gabriel b. Ppp 2021 adds additional eligible expenses for forgiveness there have been several updates to the original ppp terms over the past months and the latest round of ppp funding adds more eligible forgivable expenses so more small businesses may take advantage of this relief package.

Ppp2 creates a simplified forgiveness process for loans of up to 150 000. You can get forgiveness for this ppp loan by spending at least 60 on payroll expenses wages salaries retirement group health insurance etc and a maximum of 40 on other. Namely agc worked to block a surprise federal tax increase up to 37 percent on ppp loan forgiveness.

Little has been written about whether the new law will allow ppp borrowers to deduct the expenses that they paid to receive forgiveness and many ppp borrowers will not survive if they have a big.