Dispatch #61 - PPP Loans: Confirmed Non-Taxable & Round 2 Open

Good news from the federal government regarding PPP loans: they’re tax-free (federal) and a second round of funding is now available.

The Consolidated Appropriations Act, 2021, was signed into law on December 27th, providing significant benefits to individuals and businesses.

Pertaining to PPP loans:

• PPP loans are non-taxable at the federal level, reversing the IRS ruling. Billions of dollars get to stay where they belong, as working capital on the balance sheets of businesses, helping us get through the pandemic.

• Round 2 ($284B) is funded and available as a first or second PPP loan. One eligibility requirement is a 25% drop in year-on-year quarterly revenue. Apply ASAP but no later than March 31st, 2021.

• The forgiveness application is simplified for loans under $150,000.

• EIDL grants will NOT be deducted from PPP loan forgiveness i.e. you get to keep the $10K advance.

All this good news and more, summarized by SSB (PPP focus) and by the NFIB (expanded focus).

Need help with this or other financial matters faced by construction contractors? Let’s talk!

David Stern CFO makes every effort to provide useful and accurate information. This content, however, is not intended as a substitute for specific business-related financial advice. We disclaim all warranties and liabilities from its use.