COVID-19 Relief for Small Business with Gerri Detweiler
The latest on COVID-19 Relief for Small Business Owners with Gerri Detweiler. Get the latest updates on the PPP loans and other programs on this episode of The How of Business podcast show.
Gerri is back to help us understand all of the new COVID-19 relief programs available for small business owners that are part of the new stimulus bill.
Gerri Detweiler is a credit expert and the Education Director for NAV. She has more than three decades of experience in consumer credit education, has been interviewed in more than 3,500 news stories, and answered over 10,000 credit questions online. Her articles have been widely syndicated on sites such as MSN, Forbes, and MarketWatch. She is the author or co-author of five books, including “Finance Your Own Business: Get on the Financing Fast Track”. She has also testified before Congress on consumer credit legislation.
Geri lives in Sarasota, Florida.
Topics addressed on this episode include:
- What is the latest status on PPP forgiveness for the first round (2020) of loans? I have not submitted the SBA forgiveness form, instead waiting for my bank to notify me.
- New law allows small businesses to deduct ordinary and necessary expenses paid from the proceeds of PPP loans. There are now new categories of covered expenses for the use of the PPP loans.
- Please summarize for us what’s available now with the new relief package.
- PPP 2nd Draw: Previous PPP loan recipients with fewer than 300 employees may qualify for a second draw loan if they have more than a 25% drop in revenue in any quarter compared to the same quarter the previous year, or 2020 compared to 2019. If you are applying for your second PPP loan, you will need to have used the full amount of funds from your first PPP loan on eligible expenses before your second is disbursed.
- Borrowers may receive a PPP Second Draw Loan of up to 2.5 times the average monthly payroll costs in the one year prior to the loan or the calendar year. However, borrowers in the hospitality or food services industries (NAICS code 72) may receive PPP Second Draw Loans of up to 3.5 times average monthly payroll costs.
- Self-Employed and Sub-Contractors:
Also report from 1099 income for sub-contractor.
- Can file through March 31, 2021? But file as soon as possible?
- How do I show that I have used the full amount of funds from your first PPP loan on eligible expenses before your second is disbursed?
- Where do I apply? We can submit application on NAV if you don’t have a bank for your previous PPP loan?
- What can I use the funds for? Same as last round?
- Terms on PPP Loand: 5 Years, 1% interest, no fees, no prepayment penalties, No Guarantee, No Collateral
- Forgiveness of these new loans is also possible. You will to spend the loan funding with 8 to 24 weeks after receiving the funds.
- EIDL – if you did not receive the full $10,000 EIDL Grant, and your business is located in a low income area, you may qualify for additional grants up to the $10,000. There is no application for this, and the SBA will notify you if your small business qualifies.
Episode Host: Henry Lopez is a serial entrepreneur, small business coach, and the host of this episode of The How of Business podcast show – dedicated to helping you start, run and grow your small business.
- PPP Loan Forgiveness Form 3508S
- New Paycheck Protection Program (PPP) Loans: How to Qualify and Apply by Gerri Detweiler
- Paycheck Protection Program Documentation Prep List
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This episode of The How of Business podcast is sponsored by GoSite:
We have received compensation from this sponsor partner. We only accept sponsorships from companies who we believe provide products and services that are valuable for small business owners.