Congress passed, and President Trump signed, the Consolidated Appropriations Act, 2021. Included in its approximately 5,600 pages is a second draw of forgivable Paycheck Protection Program (PPP) loans.
The Act promises a simpler forgiveness application process for loans of $150,000 or less. According to the Act, the following is expected to be required of the borrower:
Sign and submit a one-page form
Attest to complying with PPP requirements
Report loan amount
Report number of employees retained
Report estimate of loan amount spent on payroll
Retain records (4 years for employment, 3 years for other)
Provide documentation to substantiate loss of revenue (when applying for forgiveness of a second draw loan)
As with any PPP loan, the SBA may review and audit PPP loans of $150,000 or less and access any records the borrower is required to retain.
Please contact us if you have any questions regarding this new legislation or how it applies in your situation.
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