Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees OR.Are self-employed and have no employees OR.The SBA also published a new EZ version of the forgiveness application that applies to borrowers that: Qualified costs – we dig in line by line on each allowable cost.The forgiveness percentage which is based on number of employees you still have at the end of the period.There are two main areas that we focus on in the calculator: We put together a free PPP Forgiveness Calculator to help with the documentation requirements we are expecting. Why did we create a PPP Forgiveness Calculator? Even the name interim final rule suggests that the Treasury is building the plane while we are flying in it. We dug through two main sources to get you the answers – the Cares Act and the SBA’s Interim Final Rule. How do I calculate PPP Loan Forgiveness?.While PPP1 and PPP2 loan applications are open again, you still may be asking yourself some of these questions: You can read more about this announcement here. The latest round of PPP loan applications closes on March 31, 2021. If your business has fewer than 20 employees and is eligible, don’t miss out on this window of time! If you have more than 20 employees, please continue to apply with your bank, remember this rule applies to the SBA, so your bank is likely to continue to accept applications and will just hold your application as the SBA opens up applications again and you will be at the front of the line. Why? The goal is to even the playing field for firms that make up most of the small business community – 98% of small businesses employ fewer than 20 people but have only received 45% of PPP funding thus far, according to the SBA. The Biden Administration also has announced several reforms to build on these efforts, one of which is a specific window for small business applications, better guaranteeing that funding doesn’t run out again.įor two weeks, ending on March 10, the Small Business Administration will only accept applications for PPP loans from firms with fewer than 20 employees. The share of PPP2 funding distributed through Community Development Financial Institutions and Minority Depository Institutions is up more than 40 percent from PPP1.The share of PPP2 funding going to small businesses in rural areas is up nearly 30 percent from PPP1.The share of PPP2 funding going to small businesses with fewer than ten employees is up nearly 60 percent from PPP1.PPP1 funding left behind many small and minority-owned businesses in 2020, but now, PPP2 funding will better serve entrepreneurs and startups. The Biden Administration has made strides to deliver equitable relief to small businesses with the Paycheck Protection Program in 2021.
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