Second Round of PPP – Bringing Relief to Small Businesses

Second Round of PPP – Bringing Relief to Small Businesses

by | Jan 12, 2021 | Advice

The Second Round of PPP Funding Has Favorable Changes for Small Businesses

If you’re a small business looking for financing relief to survive the storm caused by the pandemic, then pay attention. The Consolidated Appropriations Act was signed into law on December 27, 2020, and includes many forms of stimulus to support organizations and individuals impacted by COVID-19. The program’s reopening comes as the federal government extends efforts to preserve jobs and help businesses weather the coronavirus pandemic.

One of the most significant changes with the new PPP is that Congress made funding available to businesses that had previously received a PPP loan. Borrowers are eligible for a second-draw PPP loan of up to $2 million, even if an application for the forgiveness of an original PPP loan has not been filed.

More Businesses Will Qualify for Second Round of PPP

The new legislation allows new borrowers with 500 or fewer employees to receive a loan. Additionally, a second draw PPP loans are available for up to $2 million to organizations with 300 or fewer employees.

The Act expands the types of organizations that are eligible for PPP loans. Organizations that now qualify include 501(c)(6) organizations, veterans’ organizations, farmers, ranchers, and media organizations such as newspapers, television, and radio stations previously ineligible.

Second PPP Loan Eligibility

The new legislation permits borrowers that previously received and spent a PPP loan to apply for a “second draw” PPP loan. These second loans are subject to new eligibility requirements, including the following:

  • 300 or fewer employees (rather than 500).
  • Used or will use the full amount of the first PPP loan on or before the second PPP loan’s distribution date.
  • Experienced a revenue reduction of 25% or more in all or part of 2020 compared to all or part of 2019. This is determined by comparing gross receipts in any 2020 quarter with an applicable quarter in 2019.

Where to Apply for New PPP Loan

Begin your PPP loan application by contacting us at Randazzo Eschenburg & Associates. Our skillful staff will test your eligibility and match you with the appropriate loan amount. Our team can assist throughout the application process to ensure your loan experience is as seamless as possible. Contact your REA team member today to find out more.

Have More Questions?

The Consolidated Appropriations Act contains various provisions that can provide significant funding to businesses. Of course, financial advice is one of our services’ cornerstones, and we are always available to help further explain in more specific detail. If you have any questions, please feel free to contact us. We hope you learned something today. If you have any feedback or suggestions, we would love to hear them.

 

 

 

 

 

 

 

 

How to start a small business

How to start a small business

by | Apr 6, 2014 | Advice

You’ve made the decision to start your own small business. You may be an expert if your field but you know very little about how to handle record keeping, payroll reporting, income tax returns, tax filing, or sales taxes. These can be further complicated if you plan on operating in more than one state. Even starting the small business can seem a daunting task if you’ve no experience. This is part one of my two part series on starting your own small business. While the information here is specific to single member LLCs formed in Michigan, many of the concepts are applicable in all states and the process is quite similar state to state.

1. Seek Legal Counsel

While not strictly required, I recommend all new business owners consult with an attorney. Why?

2. Go with an LLC

There are other options available but, in most cases, LLC is preferred. why?

3. LARA

LARA, The Michigan Department of Licensing and Regulatory Affairs, is the department responsible for business entities. The forms needed to organize or incorporate a new business can be found here: LARA Forms

4. No, not that kind of ELF

To form an LLC in Michigan start by creating a Michigan ELF account. With a Michigan ELF account you can file forms electronically and have the needed Articles and other forms faxed to you within one business day. To create a Michigan ELF account complete the MICH-ELF APPLICATION which can be found here: ELF Form . This is a one-time application and once received your Michigan ELF account can be used to file any documents with LARA and can be updated if addresses and other information should change. You have to wait for your Michigan ELF number.  Once you have received your number visit the LLC forms page and prepare the Limited Liability Articles of Organization.  Fax the Articles of Organization along with a Michigan ELF cover sheet to the number provided.

What does ELF stand for? Add a link for the LLC form

 

Part two of this form will follow soon and will cover the specifics of filling out your ELF form, your articles of organization, and your EIN.

 

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