RICHMOND, Va. (WWBT) – The government is preparing to roll out the new paycheck protection program with more loans for struggling small businesses.
The new program authorizes an additional $ 284 billion in federally guaranteed forgivable loans. This time around, those loans are capped at $ 2 million instead of $ 10 million.
Applicants should not have more than 300 employees.
Scott Zickefoose with Keiter CPAs at Henrico and with the Virginia Society of CPAs says companies are also expected to show at least a 25% drop in revenue from Q4 2020 compared to the same quarter in 2019.
“The drop in income is the threshold at which we qualify people. So take the time to document your drop in income and review your finances quarter after quarter to make sure you will be able to qualify and prove that you will qualify, ”Zickefoose said.
Companies have eight to 24 weeks to use the funds, with at least 60% for payroll and the rest for qualifying expenses like rent and utilities.
The bill expands the type of expenses covered to include items such as remote work software and sanitary equipment.
It even covers “property damage and vandalism or looting due to last summer’s protests.”
The deadline to apply is March 31, although funding may run out much earlier.
Copyright 2021 WWBT. All rights reserved.