"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.
Connect. Succeed. Prosper.
Stay Healthy. Stay Safe.
Sincerely,
Rebecca Husted,
Daly City Colma President
Better Homes and Gardens Real Estate, J.F. Finnegan Realtors
