Payroll Protection Program And The Economic Injury Disaster Loan 2.0

The Payroll Protection Program and The Economic Disaster Injury Loan program are back and are fully funded. The new stimulus package includes $284 billion for businesses who have been impacted due to the current global pandemic. 

• Your business was in operations prior to February 15, 2020.
• First-time borrowers with w2 employees, self employed and 1099 contractors are eligible to apply. 
• Second-time borrowers can reapply if they hav less than 300 employees or experienced a 25% reduction in gross receipts in 2020 compared to 2019. 
• Loan amount: Max is $2,000,000
• To be eligible for full loan forgiveness, PPP borrowers will have to spend no less than 60% of the funds on payroll over a covered period between eight or 24 weeks.

Per the Journal of Accountancy, here is a list of eligible expenses for the PPP 2.0 include:

• Operational expenses – which “means a payment for business software or cloud computing service that facilitates business operations, product or service delivery, the processing, payment, or tracking of payroll expenses, human resources, sales and billing functions, or accounting or tracking of supplies, inventory, records and expenses;”
   
• Covered property damage cost – which “means a cost related to property damage and vandalism or looting due to public disturbances that occurred during 2020 that was not covered by insurance or other compensation;”
   
• Covered supplier costs – which means an expenditure for goods that “are essential to the operations, … made pursuant to a contract, order, or purchase order in effect at any time before the covered period, … or with respect to perishable goods, in effect before or any time during the covered period …;” and
   
• Covered worker protection expenditures – which means an operating or capital expenditure to facilitate the adaptation of business activities of an entity to comply with health and safety standards issued on or after March 1, 2020. This includes personal protective equipment and health screening in addition to a wide range of physical facility adaptations. Expenditures on residential real property and intangible property are specifically not eligible worker protection expenditures. In addition, with regard to payroll costs, benefit costs have been expanded to include employer-paid group life, disability, vision and dental insurance in addition to employer-paid health and retirement benefits.