2021 PPP Loans
In 2020, the United States government approved and dispensed the first draw PPP loans in order to support businesses negatively affected by the Coronavirus outbreak.
Then, in early 2021 US government approved $284 million in additional financial assistance (in the form of a loan) for small businesses to ease financial strain due to the on-going global pandemic. Regulations for the loan program were announced this week, and there’s good news for business owners partnered with IT service providers: PPP round two includes forgiveness for “operations expenditures.” This change allows business owners to include business software or cloud computing services for accounting, inventory tracking, and more.
Second Draw PPP Loan Qualification
In order to qualify for the loans, you must meet the following requirements:
1. Must be a legitimate entity. This includes:
- A business
- Independent contractor
- Eligible self-employed individual
- Sole proprietor
- Nonprofit organization
- Veteran’s organization
- Tribal business concern
- Housing cooperative
- Small agricultural cooperative
- Eligible 501(c)(6) organization
- Eligible nonprofit news organization
2. Maintain fewer than 300 employees
3. Experienced a loss of 25% or more in revenue in 2020 (compared to 2019)
4. Received a First Draw PPP Loan
5. Expended or slated to expend the full amount of the first PPP loan prior to receiving the second
Second Draw PPP Additional Information
If your business has met the qualifications above then your second round of PPP funds can help cover some of IT services your costs. To learn more about the US Second Draw PPP Loans, visit the Small Business Administration’s website.
