Second PPP & EIDL 2 Update - BEWARE of INACCURATE Information on New Stimulus Law

Unfortunately, since the the new stimulus bill became law at the end of December, the is a lot of inaccurate information on YouTube about the second round of PPP loans and the new EIDL grant program.

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LINK TO NEW SBA DOCUMENTS - https://www.sba.gov/document

DISCLAIMER
This video is intended for education purposes and should not be taken as legal or tax advice. You should consult with your financial professionals about your unique financial situation before acting on anything discussed in these videos. Freedomtax Accounting and Multiservices Inc. is providing educational content to help small business owners become more aware of certain issues and topics, but we cannot give blanket advice to a broad audience. Freedomtax Accounting and Multiservices Inc. or its members cannot be held liable for any use or misuse of this content.

ABOUT
The Coronavirus Response and Relief Supplemental Appropriations Act of 2021 is a $900B relief package to deliver a second round of economic stimulus for individuals, families, and businesses. The package provides relief through multiple measures and expands many of the provisions already put into place under the CARES Act.

Paycheck Protection Program Loans

Businesses are now allowed to deduct expenses associated with their forgiven PPP loans.
The new law provides $284.45 billion to reopen and strengthen PPP for first and second time borrowers and reauthorizes the program through March 31, 2021.
Develops a process for a small business to receive a second PPP if the small business has less than 300 employees and can demonstrate a revenue reduction of 25 percent.
Creates a simplified PPP loan forgiveness application for loans under $150,000 whereby the borrower signs and submits a one-page certification that requires the borrower to list the loan amount, the number of employees retained, and the estimated total amount of the loan spent on payroll costs.
Expands the list of eligible expenses to include covered operations (software, cloud computing and other human resources and accounting needs), PPE, covered supplier costs and damage costs due to public disturbances.
Repeals the CARES Act provision that requires borrowers to deduct their EIDL Advance from their PPP loan forgiveness amount.
Key takeaways:
Tax professionals can help their clients to determine PPP loan and forgiveness eligibility and with applications.
Tax professionals can encourage their clients to keep all PPP funds separate and to keep important records.

Economic Injury Disaster Loan (EIDL) Advance Program

The new law provides $25 billion to restart and extend the EIDL Advance Grant for small businesses in low income communities.
Creates a process for existing EIDL Advance grantees that received less than $10,000 to reapply for the difference between what they received and the maximum EIDL Advance Grant of $10,000.

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