"A First Draw PPP loan is for those borrowers who have yet to receive a PPP loan before the program closed in August 2020.
On Jan. 13, 2021, participating CFIs may begin submitting application information to SBA forSecond Draw PPP loans. A Second Draw PPP loan is for certain eligible borrowers that previously received a PPP loan, generally have 300 employees or less, and has suffered a 25% reduction in gross receipts. At least $15 billion is set aside for additional PPP lending by CFIs."
Some notable changes:
The two-day head start for first-time borrowers
Purchases made with PPP funding ARE tax-deductible
Loans are now capped at $2 million (down from $10 million)
You can now deduct 100% of business meals at restaurants through 2022 (if you're a restaurant, make sure you tell businesses about this!)
“Forgivable” expenses have been expanded beyond payroll-related expenses, utilities and rent. They now include operating costs, property damage costs, supplier costs, and worker protection costs.
To read more of the SBA's press release, please click here.
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Daly City Colma President
Better Homes and Gardens Real Estate, J.F. Finnegan Realtors