{"id":176,"date":"2020-12-24T15:07:25","date_gmt":"2020-12-24T15:07:25","guid":{"rendered":"https:\/\/valcomputers.com\/New\/?page_id=176"},"modified":"2021-01-11T23:37:31","modified_gmt":"2021-01-11T23:37:31","slug":"payroll-protection-program","status":"publish","type":"page","link":"https:\/\/valcomputers.com\/New\/payroll-protection-program\/","title":{"rendered":"Payroll Protection Program"},"content":{"rendered":"<ul>\n<li class=\"m_-4472032157931036865MsoListParagraph\"><span style=\"font-size: 14pt; font-family: georgia, palatino, serif; color: #000000;\"><strong>The First round of funding will go to 1<sup>st<\/sup> time borrowers through smaller lending institutions. This takes place on January 11<u><\/u><u><\/u><\/strong><\/span><\/li>\n<li class=\"m_-4472032157931036865MsoListParagraph\"><span style=\"font-size: 14pt; font-family: georgia, palatino, serif; color: #000000;\"><strong>The Second round of funding for 2<sup>nd<\/sup> time borrowers will be going out on January 13. <u><\/u><u><\/u><\/strong><\/span><\/li>\n<li class=\"m_-4472032157931036865MsoListParagraph\"><span style=\"font-size: 14pt; font-family: georgia, palatino, serif; color: #000000;\"><strong>Those who will be receiving $150K or less will not need documentation to prove the 25% drop in Gross Receipts from a quarter 2019 compared to 2020<u><\/u><u><\/u><\/strong><\/span><\/li>\n<li class=\"m_-4472032157931036865MsoListParagraph\"><span style=\"font-size: 14pt; font-family: georgia, palatino, serif; color: #000000;\"><strong>They may have to prove that there was a lost if questioned about \u201cNecessity.\u201d<u><\/u><u><\/u><\/strong><\/span><\/li>\n<li class=\"m_-4472032157931036865MsoListParagraph\"><span style=\"font-size: 14pt; font-family: georgia, palatino, serif; color: #000000;\"><strong>Necessity is defined by \u201cneeded to support the ongoing operation.\u201d <u><\/u><u><\/u><\/strong><\/span><\/li>\n<li><span style=\"font-size: 14pt; font-family: georgia, palatino, serif; color: #000000;\"><strong>Those who are receiving greater than $150K, will be able to show the 25% drop in business from comparing 2019 to 2020 Tax Returns<\/strong><\/span><\/li>\n<\/ul>\n<p><span style=\"font-size: 14pt; font-family: georgia, palatino, serif; color: #000000;\"><strong><code><\/code><\/strong><\/span><\/p>\n<p><span style=\"font-size: 14pt; font-family: georgia, palatino, serif; color: #000000;\"><strong>Changes to PPP:<\/strong><\/span><\/p>\n<ol>\n<li><span style=\"font-size: 14pt; font-family: georgia, palatino, serif; color: #000000;\"><strong>Additional eligible expenses that qualify for forgiveness are added in addition to rent, interest, and utilities which are already forgivable as \u201c40% expenses.\u201d<\/strong><\/span><\/li>\n<li><span style=\"font-size: 14pt; font-family: georgia, palatino, serif; color: #000000;\"><strong>Borrowers may select the end of their covered period any time between 8 &#8211; 24 weeks from receipt of loan.<\/strong><\/span><\/li>\n<li><span style=\"font-size: 14pt; font-family: georgia, palatino, serif; color: #000000;\"><strong>Simplified Loan Forgiveness process for borrowers with less than $150,000 of loans.<\/strong><\/span><\/li>\n<li><span style=\"font-size: 14pt; font-family: georgia, palatino, serif; color: #000000;\"><strong>Payroll costs now include employer payments for group life, disability, vision, and dental insurance payments.<\/strong><\/span><\/li>\n<li><span style=\"font-size: 14pt; font-family: georgia, palatino, serif; color: #000000;\"><strong>Borrowers can amend their original application to request increased loan amount due to changes in PPP loan rules if the original loan amount was less than amount that would have otherwise applied.<\/strong><\/span><\/li>\n<li><span style=\"font-size: 14pt; font-family: georgia, palatino, serif; color: #000000;\"><strong>For the purposes of calculating covered payroll expenses, an owner\u2019s $100,000 salary\/wage limitation now applies on an annualized basis<\/strong><\/span><\/li>\n<li><span style=\"font-size: 14pt; font-family: georgia, palatino, serif; color: #000000;\"><strong>EIDL Advances are non taxable and will not reduce PPP loan forgiveness.<\/strong><\/span><\/li>\n<li><span style=\"font-size: 14pt; font-family: georgia, palatino, serif; color: #000000;\"><strong>No eligibility for PPP loan if the business was not in operation before Feb 15th, 2020.<\/strong><\/span><\/li>\n<li><span style=\"font-size: 14pt; font-family: georgia, palatino, serif; color: #000000;\"><strong>All existing safe harbors and exceptions for reduction in employee headcount (FTEs) remain, and the Act further provides that the SBA may modify dates of safe harbors to comply with intent of PPP.<\/strong><\/span><\/li>\n<li><span style=\"font-size: 14pt; font-family: georgia, palatino, serif; color: #000000;\"><strong>Act makes it clear the Schedule F Farmers are eligible for PPP loans based on 2019 Schedule F income<\/strong><\/span><\/li>\n<li><span style=\"font-size: 14pt; font-family: georgia, palatino, serif; color: #000000;\"><strong>501(c)(6) entities (Chambers of commerce, business leagues, real-estate boards, boards of trade, with the exception of sports teams) are eligible to receive a PPP loan if they meet the necessity requirement.<\/strong><\/span><\/li>\n<li><span style=\"font-size: 14pt; font-family: georgia, palatino, serif; color: #000000;\"><strong>The $100,000 salary\/wage limitation on determining loan amounts and forgiveness expenditures applies on an annualized basis.<\/strong><\/span><\/li>\n<li><span style=\"font-size: 14pt; font-family: georgia, palatino, serif; color: #000000;\"><strong>Borrowers in bankruptcy can apply for PPP loans with court approval<\/strong><\/span><\/li>\n<li><span style=\"font-size: 14pt; font-family: georgia, palatino, serif; color: #000000;\"><strong>Can receive both PPP and Employee Tax Retention Credit! Do not file PPP 2020 forgiveness application until you are clear on whether it could cause loss of Employee Tax Retention Credit<\/strong><\/span><\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 14pt; font-family: georgia, palatino, serif; color: #000000;\"><strong>PPP Second Draw Rules:<\/strong><\/span><\/p>\n<ol>\n<li><span style=\"font-size: 14pt; font-family: georgia, palatino, serif; color: #000000;\"><strong>Small businesses with less than 300 employees and a 25% or more drop in gross receipts for a calendar quarter (as compared to the prior applicable calendar quarter) may be eligible for a second PPP loan if they meet the necessity requirement.<\/strong><\/span><\/li>\n<li><span style=\"font-size: 14pt; font-family: georgia, palatino, serif; color: #000000;\"><strong>\u2022 The 1st quarter of 2019 as compared to the 1st quarter 2020.<\/strong><\/span><\/li>\n<li><span style=\"font-size: 14pt; font-family: georgia, palatino, serif; color: #000000;\"><strong>\u2022 The 2nd quarter of 2019 as compared to the 2nd quarter of 2020.<\/strong><\/span><\/li>\n<li><span style=\"font-size: 14pt; font-family: georgia, palatino, serif; color: #000000;\"><strong>\u2022 The 3rd quarter of 2019 as compared to the 3rd quarter of 2020.<\/strong><\/span><\/li>\n<li><span style=\"font-size: 14pt; font-family: georgia, palatino, serif; color: #000000;\"><strong>\u2022 The 4th quarter of 2019 as compared to the 4th quarter of 2020<\/strong><\/span><\/li>\n<li><span style=\"font-size: 14pt; font-family: georgia, palatino, serif; color: #000000;\"><strong>The loan will be for 3.5 times the average monthly payroll (instead of 2.5 times) for restaurants, hotels, motels and certain other food and lodging businesses.<\/strong><\/span><\/li>\n<li><span style=\"font-size: 14pt; font-family: georgia, palatino, serif; color: #000000;\"><strong>Borrowers can elect to calculate the second round based on 2.5x the average monthly payroll costs during any 12 month period ending prior to the date of the loan or the 2019 calendar year.<\/strong><\/span><\/li>\n<li><span style=\"font-size: 14pt; font-family: georgia, palatino, serif; color: #000000;\"><strong>March 31, 2021 new deadline to apply for and receive a PPP Loan.<\/strong><\/span><\/li>\n<li><span style=\"font-size: 14pt; font-family: georgia, palatino, serif; color: #000000;\"><strong>Make sure to understand interaction with wage credit. PPP second draw may interfere with or complicate Employee Tax Retention Credit.<\/strong><\/span><\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>The First round of funding will go to 1st time borrowers through smaller lending institutions. This takes place on January 11 The Second round of funding for 2nd time borrowers will be going out on January 13. Those who will be receiving $150K or less will not need documentation to prove the 25% drop in&#8230;<\/p>\n<p class=\"more-link\"><a href=\"https:\/\/valcomputers.com\/New\/payroll-protection-program\/\" class=\"\"><span>Read More<\/span><i>&#43;<\/i><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_cbd_carousel_blocks":"[]","pagelayer_contact_templates":[],"_pagelayer_content":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-176","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/valcomputers.com\/New\/wp-json\/wp\/v2\/pages\/176","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/valcomputers.com\/New\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/valcomputers.com\/New\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/valcomputers.com\/New\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/valcomputers.com\/New\/wp-json\/wp\/v2\/comments?post=176"}],"version-history":[{"count":6,"href":"https:\/\/valcomputers.com\/New\/wp-json\/wp\/v2\/pages\/176\/revisions"}],"predecessor-version":[{"id":471,"href":"https:\/\/valcomputers.com\/New\/wp-json\/wp\/v2\/pages\/176\/revisions\/471"}],"wp:attachment":[{"href":"https:\/\/valcomputers.com\/New\/wp-json\/wp\/v2\/media?parent=176"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/valcomputers.com\/New\/wp-json\/wp\/v2\/categories?post=176"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/valcomputers.com\/New\/wp-json\/wp\/v2\/tags?post=176"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}