Congress passed a new COVID-19 Bill this week that includes the second wave of the PPP loans with $284 Billion being allocated to the SBA for pandemic-induced hardships.
And there's more good news with the legislation ensuring the tax deductibility for business expenses paid with forgiven Paycheck Protection Program (PPP) loans. Prior to this bill, the PPP loan expenses were not going to be deductible according to the IRS (those scrooges, always trying to screw us!).
Who is eligible to apply
PPP2 loans will be available to first-time qualified borrowers and, for the first time, to businesses that previously received a PPP loan. Specifically, previous PPP recipients may apply for another loan of up to $2 million, provided they:
Have 300 or fewer employees.
Have used or will use the full amount of their first PPP loan.
Can show a 25% gross revenue decline in any 2020 quarter compared with the same quarter in 2019.
The bill allows borrowers who returned all or part of a previous PPP loan to reapply for the maximum amount available to them.