The U.S. Government recently approved $284 billion in loan assistance as part of a relief effort for the global Covid pandemic. One interesting item that may help many small businesses is that this second round of PPP funding includes forgiveness for “operations expenditures,” including but not limited to business software and certain Cloud computing services.
To qualify for the loans the following requirements must be met:
Must be a business, independent contractor, eligible self-employed individual, sole proprietor, not-for-profit organization, 501(c)(6), and a few other designations are also available (consult link below for more details). Criteria for eligibility are:
- Fewer than 300 employees
- Received a PPP loan in the first emergency funding bill
- Experienced a revenue reduction of 25% or more in 2020 compared to 2019
- Expended (or will have expended) all of the first PPP loans prior to receiving the second.
There’s more info at the Small Business Administration website.