With the newest round of PPP loans going out you might be wondering if you qualify. In order to shed some light on the subject, Lindsay Wiley provides a quick breakdown. Watch the video above or click here to watch the video on our YouTube channel.
The stimulus package will include more PPP for small businesses. This will include and be with the same exact guidelines as it is right now with the second round A and B of the stimulus package passed on January 6th. This is not available for companies that have over 300 employees as an S-Corp, a C-Corp, a Partnership, or a Nonprofit.
If you are a Sole Proprietor, you have to prove that you have less than 200 employees. You also have to show a 25% reduction of income due to COVID during the 2020 tax year. They will ask for documentation from February 2019 up to February 2020 showing and proving that you had a reduction in sales.
If you can meet those requirements, then you can apply and get granted PPP for the second or third round. This will include, and how they determine this is, is they will take, for anything other than restaurants, 2.5 times your monthly payroll amount. So, say your payroll is $5,000 a month, you’re going to get $12,500.
Restaurants are 3.5 times their monthly payroll. They’re giving a little extra to them. Restaurant employees often make $5 an hour or $8 an hour. They make their money on tips, so it’ll help.
If you have to, apply for rounds A and B of the second stimulus package now.
If you are interested in learning more about or applying for PPP loans please contact us today to learn more and see if you qualify.
As always, you can also book a free consultation to speak with us too!