Small businesses in Alabama will be eligible for next round of PPP loans in 2021
Small business owners in Alabama will soon be able to apply for loans from the Paycheck Protection Program (PPP) again after the federal government recently approved a new round of funding for the program along with changes to how it is administered.
Businesses that received a loan in the first round of the program will be able to apply for another, and businesses that did not apply earlier in the year will be eligible as well.
An early December survey conducted by the National Federation of Independent Business (NFIB) showed 45% of America’s small business owners would apply or re-apply for a PPP loan and an additional 33% would consider applying.
The Paycheck Protection Program was originally created by the federal government’s CARES Act in March to help companies endure the financial strain of the coronavirus pandemic. It proved popular, requiring a replenishing of funds in April.
Congress’ legislation in December that renewed the program included changes to the program from how it operated earlier in the year,
Importantly, PPP loans are now deductible from federal taxes, and an increased number of expenses trigger the loans being eligible for forgiveness.
Companies that can get what Congress is calling a “Second Draw” loan — businesses that already received a PPP loan earlier in the year — must have less than 300 employees, and the maximum amount they can receive is $2 million.
Eligibility for a PPP loan has been expanded to include 501(c)(6) nonprofits such as chambers of commerce and some other organizations like housing cooperatives.
Exact details on how to apply for the new round of the program are not yet available. The Small Business Administration has 10 days from when the law was approved, December 27, to produce comprehensive guidance on how companies can apply for the renewed program.
NFIB State Director for Alabama Rosemary Elebash was a staunch proponent of a new round of PPP funding, as was her organization.
“Alabama businesses are facing hardships as they have never experienced,” Elebash explained in December as part of her urging Congress to approve more PPP funds.