5. You Don’t Should Subtract Financial Harm Catastrophe Loans (EIDL) From Your Forgivable PPP Funds
The SBA has canceled its earlier requirement that anybody who acquired an EIDL and was making use of for forgiveness needed to first subtract the quantity of the EIDL from the quantity that might be forgiven. In different phrases, if you happen to acquired each a $10,000 EIDL and a $100,000 PPP mortgage, you’d solely be capable to get a most of $90,000 of your PPP forgiven.
That is now not the case, and forgiveness will apply retroactively to all PPP loans. Companies that already had the EIDL deducted will obtain remittance funds—plus curiosity by way of their PPP lenders or ACH into their qualifying checking account.
6. The Course of Has Been Simplified for Sole Proprietors
Whenever you’re a one-person operation, likelihood is you don’t have a proper payroll to submit as a part of a PPP utility.
“The Paycheck Safety Program is just not the small enterprise safety program,” says Greg Ott, CEO of Nav, a lending platform that connects small companies with potential lenders, together with PPP loans. “Payroll isn’t a sign of what a small enterprise must survive.”
The brand new SBA guidelines make it simpler for sole proprietors to each calculate their eligible mortgage quantities and apply for forgiveness. Now, a sole proprietor’s mortgage quantity eligibility relies on their web revenue from 2019, divided by 12, to find out a mean month-to-month web revenue. This quantity is then multiplied by 2.5 to calculate what the utmost PPP mortgage quantity is likely to be, topic to a $20,833 cap.