Stimulus Bill Ppp Rules

The bill allows borrowers that returned all or part of a previous ppp loan to reapply for the maximum amount available to them.

Stimulus bill ppp rules. Highlights of the new stimulus bill second round of ppp loans forgiveness rule changes. 21 that will provide 600 stimulus payments to individuals adds 300 to extended weekly unemployment benefits and. Senate and house of representatives passed a 900 billion covid 19 relief bill monday dec.

Based on 2017 irs data 37 percent of self employed farmers would have not received a loan from the ppp because of reported net losses in the prior year. New stimulus bill includes second round of ppp loans for small business and forgiveness rule changes favorable to borrowers congress finally passed further covid relief and it potentially bodes. As with ppp1 the costs eligible for loan forgiveness in ppp2 include payroll rent covered mortgage interest and utilities.

See bkd article congress expected to pass phase 4 covid 19 stimulus bill for a summary of other stimulus details. Previously under sba rules farmers participation in the ppp was based on 2019 net farm profits or losses reported on irs form schedule f profit or loss from farming. The passage of this economic stimulus bill is a metaphorical shot in the arm for small business owners who have suffered disproportionately during the covid pandemic.

2019 also was not a good year for self employed. 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. In other words if you got a 10k eidl grant advance in 2020 you had to subtract that amount from your ppp loan forgiveness amount.

For a discussion of other aspects of the bill see our comprehensive alert here. It renews the paycheck. Provides tax deductions and other relief.

This will no longer apply. For the majority of ppp borrowers the only but very significant change in the ppp rules will be to provide confirmation that they will not lose the income tax deduction that was expected to be available for expenses paid from ppp loans for items that are normally tax deductible. Ppp2 also makes the following potentially forgivable.