Paycheck Protection Program - Update as of March 30, 2021

Octavia Conner

By Octavia Conner

Tags: All, Accounting

Greetings Everyone! Today, I am going to do a quick update on the changes to the PPP as of March 30, 2021

 

The Paycheck Protection Program (PPP) are small business forgivable loans the government offers business owners who can prove that COVID-19 impacted their business. Specifically, they had to lay off staff, and their revenue decreased by 20% or more. 

 

 

Located in this video's description, I have linked several videos about PPP and the many updates. 

 

For today, I will only discuss the latest updates and your CEO's next best steps.

 

On March 30, this past Tuesday, President Biden signed an extension order for the Paycheck Protection Program (PPP).

 

The deadline to apply for the PPP was extended from March 31 to May 31. With this extension, the SBA now has until June 30 to process the applications.  

 

The PPP Extension Act does not provide any additional funding for the current round of the PPP. However, Congress did previously approve $290 billion for small businesses and not-for-profit organizations for the PPP loan. 

 

You can apply for the PPP for the first draw (businesses who did not receive it the first time) and the second draw (businesses who previously received the funds and have exhausted the funds).

 

Quick Recap

  • If you can prove that your business experienced a 20% decrease in revenue due to COVID-19, you may be a great candidate to receive the PPP. 
  • Suppose you received the first round that does not automatically qualify you to receive the 2nd round. You must go through the application process again with an FDA-approved institution. Preferably for a business banking institution. 

 

CEO Next Steps

  • I recommend hiring an accountant to help you build and maintain a reliable financial management system for your business. It would be best to have an accountant that could help increase your loan chance of being forgiven when it's time to apply. There are specific things you want to have in place during the forgiveness process.

Of course, if you need assistance with building a financial management system that will enable you to NEVER, yes, NEVER have money worries AGAIN, contact SYTP.com today!

Apply For A Discovery Session Today!

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