RECENT DEVELOPMENTS - SMALL BUSINESS ASSISTANCE
PAYCHECK PROTECTION PROGRAM - SECOND DRAW LOANS
The SBA will begin accepting applications for the second round of PPP loans today, January 11th. In order to qualify for a Second Draw Loan, a business must meet the following requirements:
- Used the full amount of their original PPP loan for qualified expenses
- Has no more than 300 employees
- Experienced a revenue reduction of 25% or more in any quarter of 2020 compared to the corresponding quarter in 2019
Please contact our office if you believe your business is eligible for the Second Draw Loan Program.
ERC - Employee Retention Credit
The COVID relief bill passed by Congress in December expanded the opportunity for small businesses to take advantage of the Employee Retention Credit. The ERC allows a payroll refundable tax credit for employers. Highlights of the new rules include the following:
- Recipients of PPP loans are now eligible to claim the ERC
- The amount of the credit increased from up to $5,000 per employee for 2020 to $14,000 per employee for 2021
- Eligibility:
- Business fully or partially suspended by government order
OR
- For 2020 - Experienced a revenue reduction of 50% or more in any quarter of 2020 compared to the corresponding quarter in 2019
- For 2021 - Experienced a revenue reduction of 20% or more in any quarter of 2021 compared to the corresponding quarter in 2019
Please contact our office if you believe your business is eligible for the ERC.