As seems to be the ongoing trend….the Paycheck Protection Program (PPP) has changed again. Here’s what we know as of now!
The Biden administration announced new rules, changing eligibility for self-employed (schedule C) businesses. PPP loans can now be based upon gross income rather than net (good news for many). At this time, the SBA has stated that they will not allow amendments to loans previously received by Schedule C businesses to increase amounts (terrible news for many). If you didn’t apply for a PPP loan previously because you had a loss, or very small income, it’s time to re-evaluate. But do it quickly, because the deadline to apply is 3/31/21.
Now, for all of our farmers and other businesses that applied for round 1 PPP in 2021. We expected that you would be able to use the funds and immediately apply for round 2 (assuming you met the eligibility rules for round 2). Unfortunately, SBA has formally announced that they are not currently accepting applications for round 2 if you received round 1 in 2021. We unfortunately do not know if/when that will change. It’s frustrating roadblock that is contrary to the law as written, but we will keep you informed as we know more.
In general, PPP is a constant moving target. We expect it to continue to be so, and will keep you posted with relevant changes when they happen. We hope to see a change in the 3/31 deadline, opening of availability to apply for round 2 for those that received round 1 earlier this year, and ability to amend loans for Schedule C businesses that could have received more based upon the new rules.