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Small Businesses Get Exclusive Access to PPP Loan Assistance by Joseph C. Leuchter, CPA


Posted on March 02, 2021 by Joseph Leuchter

At the direction of President Joe Biden, the Small Business Administration (SBA) has established a special 14-day period for the nation’s smallest businesses and non-profits to apply for potentially forgivable loans under the Paycheck Protection Program (PPP). This exclusive application period for entities with fewer than 20 employees runs from Feb. 24 through March 9, 2021.

As of February 21, 2021, the SBA has approved more than $662 billion in PPP loans to small businesses, sole proprietorships, independent contractors and non-profits that are struggling to maintain operations and retain employees through the prolonged COVID-19 pandemic. Applicable borrowers have until March 31, 2021, to apply for a first- or second-draw loan under the most recent round of funding established by Congress. Forgiveness is available based on a borrower’s ability to allocate at least 60 percent of loan proceeds on payrolls costs, including salary, wages, commissions, tips and employer payments of health insurance premiums and retirement plan benefits. Borrowers may allocate the remaining 40 percent of loan proceeds to rent, mortgage interest, interest, utilities, and most recently, costs of covered property damages and supplier costs, cloud computing services expenses, and COVID-19-related safety measures and covered worker protections, such as PPE, sneeze guards and social-distancing signage.

In addition to establishing this restricted PPP loan application period, the SBA also announced the following program changes to help ensure that available funding reaches those businesses and charitable organizations that have been hardest hit by the coronavirus.

About the Author: Joseph C. Leuchter, CPA, is a senior manager in the Tax Services practice of Berkowitz Pollack Brant Advisors + CPAs, where he helps individuals and businesses grow wealth and profits while maintaining tax efficiency and compliance. He can be reached at the CPA firm’s Miami office at (305) 379-7000 or at info@bpbcpa.com.