The Small Business Administration has announced that the Paycheck Protection Program (PPP) has reopened for eligible new borrowers and certain potential "second draw” PPP borrowers. This round of PPP continues to support small business employment through job retention funding. Only community financial institutions are able to make First Draw PPP Loans beginning on Monday, January 11, and Second Draw PPP Loans on Wednesday, January 13. The PPP will open to all participating lenders shortly thereafter. For more information, including eligibility, application and terms, please use this link.
The Employee Retention Tax Credit program has been significantly expanded through new legislation (beginning on January 1, 2021 and expiring on June 30, 2021). The new credit is 70% on $10,000 in wages per quarter (or a maximum $14,000 per employee through June 30th) for employers who meet eligibility requirements (which have been expanded). Employers can now also receive both the Employee Retention Tax Credit and a PPP loan, just not to cover the same payroll expenses. We encourage you to talk with your organization’s tax professional and monitor the IRS website for coming updates and information on how to claim the credit.
Economic Injury Disaster Loan (EIDL) and Grants is a working capital loan to help small businesses meet their ordinary and necessary financial obligations that cannot be met as a result of COVID-19. The new legislation will re-open the $10,000 grant portion of the program for specific, eligible employers. For more information visit the SBA online and note that new information is expected to be released in the coming days.
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