Includes New PPP Funding for Previous PPP Recipients that Qualify
New Simplified PPP Forgiveness Application for up to $150K Loans

After much discussion regarding various elements of the bill (including the dollar amount of stimulus payments and various funding initiatives mainly in the omnibus spending portion of the bill) President Trump did eventually sign the legislation Sunday evening, December 27th effectively making it law.

In addition to the line items we discussed last week, this law also includes a new round of PPP (Paycheck Protection Program) funding some are calling “PPP2”. These new funds will be available to first-time qualified borrowers (that did not receive them the first rounds) provided they are:

• Businesses with 500 or fewer employees eligible for other SBA 7(a) loans
• Accommodation and food services operations with fewer than 300
  employees per physical location

These funds will also be available for businesses that even previously received a PPP loan provided they:

• Have 300 or fewer employers
• Can a show a 25% gross revenue decline in any 2020 quarter compared with the same quarter in 2019
• Have used or will use the full amount of their first PPP loan

The law also now creates a simplified forgiveness application for loans up to $150K that will “not be more than one page in length”.

As expected with any bill nearly 5600 pages in length there will be many additional changes impacting both individuals and businesses alike. Be assured that the consulting and tax experts at Polk and Associates will be reviewing these details in the upcoming days to ensure we are up to speed on all of them and how they may impact you. We will keep you posted on further developments.

As your trusted business advisors, we at Polk and Associates remain committed to assist you during this extraordinary time. Please reach out to us with questions you may have as we stand with you as we weather this extraordinary crisis.

Polk & Associates

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