The second round of PPP Loans is coming. Here’s what you need to know:
The new law allows some businesses to apply for a second loan. To qualify, businesses must have spent all of their first loan, have less than 300 employees and prove that they lost 25% or more of revenue in any quarter in 2020 either on a quarterly or annual basis.
“During the first round of PPP, a lot of businesses had a hard time even gathering what their net income was because they didn’t have proper bookkeeping,” said Sheneya Wilson, CPA and founder of Fola Financial in New York. “Now, you kind of have to show comparative statements.”
That means businesses will generally need to have their 2019 tax return on hand as well as profit and loss records to show that they’ve had at least one quarter where revenue fell 25% or more. A tax professional will be able to help businesses make sure they’re eligible and have the correct documentation, said Wilson.
These second loans will be made on a similar recommendation to the first round of PPP – 2.5 times payroll costs – and will also be capped at $2 million.
AABS Inc. is here to help you through the process.
Call us today to get started 919-303-3345.