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PPP II: What you need to know.

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Education & Training with Arch Tax Resolution

I represent tax payers in the greater St. Louis area, the State of Missouri and nationwide who has IRS  and state issues who haven't filed tax returns. The new PPP program has finally been introduced and as expected there are a lot of questions on how this all works and how it might effect particpates in round one as well as round two.

Additional PPP funding is being offered in the amount of 284 billion dollars to support small businesses and non profit organizations. Program is open till 3/31/2021 unless it is extended.

There are two types of loans known as draw 1 and draw 2.If you got a draw the first time around you are eligibile for a 2nd. If you didn't apply the first time you can on the second.

60% must be spent on payroll expenses to recieve full forgiveness unless an exception that might apply. You can use PPP funds to refiance an EIDL loan EIDL grant or loan will not  reduce eligbility for PPP.may be spent between 8 and 24 weeks.The old rules on the first draw pretty much explained but there are a few updates.2nd draw is a different story. Some of the other expenses you can use are contributions to health insurance, dental insurance disability and vision.You can use PPP funds to refiance an EIDL loan .

Here is how PPP 2 works.

* You have to show a 25% reduction in gross reciepts when compared to any quarter in 2020 or year to year overall.

* Borrowers can amend 1st draw application to request more money or reapply under what's call safe harbor rule.

* Maximum 24 weeks to spend money but you can choose between 8-24 weeks.

* If someone has had the misfortune of filing bankrupcy a bankrupcy judge can approve getting a PPP2  if the person is determined to be eliglable.

* Independent contractors or sole proprietors are also eligibile.

The following is some of the proof that lending instituions will want to see

• K-1 or tax return (for non-wage compensation), along with payment
journal
• Bills for payment of benefits, such as health insurance
• Statements from administrator for retirement plan contributions

There are many other details that will unfold in the coming days and weeks and certainly more changes and I will commuicate more on this in up coming posts.

If you or someone else you know are having IRS or State tax issues please don't hestiate to contact me @steveshapiroea@gmail.com call me @ 636-397-2759 or text to 636-866-4554

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                                                  www.archtaxresolution.com

                                                  www.steveshapiroea.com

 

John Pusa
Glendale, CA

Hello Steve Shapiro very helpful report for what we need to know about PPP II.

Jan 13, 2021 02:13 PM
Sharon & Bruce Walter
Keller Williams Realty Lafayette, IN - Lafayette, IN
West Lafayette homes for sale

Steve this is good information and very useful for our commercial tenants.

Feb 11, 2021 07:58 PM