A second round of Payroll Protection Program is taking applications
Back in July of last year, we reported on the first round of the Payroll Protection Program or PPP (see link in footnotes). As we said then, the PPP is 'a program under which the Federal government will give your business a big check if you keep people on payroll. There are very few strings attached. And applying for the check is pretty easy.'
If you applied for and received a check back then (and several of our readers tell us that they did), the money has probably run out by now. There is, however, a second round of PPP for which you can apply.
The PPP dollars are available through many financial institutions, but if you're a small business or a 1099 contractor, your best option may be to apply through LiftFund, a San Antonio-based lending organization focused on very small businesses. LiftFund not only provides the dollars, they provide one-on-one assistance for the entire process. They don't expect you to be a CPA.
For this round of the PPP, LiftFund is working through a third party, Lendio, to help you put together your application.
Here's what the LiftFund website says about round two of the PPP:
'The Paycheck Protection Program (PPP) now allows certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP Loan with the same general loan terms as their First Draw PPP Loan. Second Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.'
You'll notice that the dollars are referred to as a 'loan'. However, as we explain in our July article, if you use the funds for the allowed purposes (primarily payroll, but also rent, utilities, and some other enumerated purposes), the loan will be 'forgiven' and essentially turned into a grant.
See the footnotes for a link to the LiftFund PPP Round Two page.
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