twocents.lifehacker.com

Photo: Gorodenkoff (Shutterstock) As of today, small business owners struggling to cover overhead costs can apply for a second round of Paycheck Protection Program (“PPP”) tax-deductible loans. The program includes changes that targets smaller and minority-owned businesses. Here’s what you need to know, and how to apply. What is the PPP? As part of the CARES Act passed last March, the first iteration of the PPP provided a total of $519 billion for forgivable loans to help businesses cover payroll and overhead costs during the pandemic. In the latest relief package, a second round of first-come, first-serve PPP loans totaling $284 billion has been made available. The U.S. Small Business Administration (SBA), which runs the program, has been criticized for inequitably doling out the first round of funding, as banks favored existing customers—which benefitted, among others, businesses run by members of Congress and large publicly traded companies that already have access to capital markets. What’s different about “PPP 2.0″? Qualified borrowers who have already received PPP loans will also be eligible for new, tax-deductible loans. However, funds have been set aside for first-time borrowers, with priority given to underserved minority-, women-, and veteran-owned businesses. Per the Journal of Accountancy , over $105 billion in funding targets small-sized businesses, with $15 billion reserved for lending by community financial institutions. Notably, to ensure an equitable distribution of funds, the SBA will only accept PPP loan applications from community financial institutions (as opposed to large banks) from today through Wednesday. In a […]