New Stimulus Bill Ppp Loan

Creates a simplified forgiveness application process for loans of 150 000 or less.

New stimulus bill ppp loan. The bill also would allow farmers and ranchers who received a ppp loan using their 2019 net income to recalculate their loan award using 2019 gross income if it would result in a larger loan amount. The caa resurrects the ppp with 284 billion in new funding liberalized rules and most importantly the new second draw loan program explained immediately below. The new legislation would help farmers and ranchers by allowing them to use their 2019 schedule f gross income up to 100 000 when calculating their ppp loan rather than their 2019 net income.

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. Congress approved another 284 billion in funding for these loans in the stimulus bill enacted december 27 2020. The new covid 19 relief bill also.

Your lender should provide you a link to a form soon in the new year. The new stimulus bill now forgives up to eight months of principal and interest payments on section 7 a and 504 microloans from the sba. Ppp borrowers with naics codes starting with 72 hotels and restaurants can get up to 3 5 times their average monthly payroll costs again subject to a 2 million maximum.

If you are a small business owner the covid 19 stimulus package that congress passed on monday evening december 21 2020 has some very good news. Andrew harrer during the summer i wrote about a little known clause in the cares act that turned into a big savings for many small businesses that received loans from the small business administration. Provides tax deductions and other relief.

If your ppp loan was for 150 000 or less there will be a new simple one page form to apply for forgiveness. Regarding the next round i m a little confused as i only have a partial quarter. For a discussion of other aspects of the bill see our comprehensive alert here.

New stimulus bill includes second round of ppp loans for small business and forgiveness rule changes favorable to borrowers. Among the federal tax changes in the bill are. Included as part of the stimulus bill the bill are the covid related tax relief act of 2020 and the taxpayer certainty and disaster tax relief act of 2020.