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Showing posts from April, 2021

A Review of the Paycheck Protection Program (PPP 1 and 2)

by Megan Roberts, Extension educator, and C. Robert Holcomb, EA, Extension educator   The  Consolidated Appropriations Act (CAA), 2021 ,  passed December 27, 2020, updated the rules and processes for the  Paycheck Protection Program (PPP) . Since that law's passage in late December, the Treasury Department, Internal Revenue Service, and Small Business Administration have issued further guidance of the programs. Furthermore in late March, the president signed  The  PPP Extension Act of 2021 , extending the deadline to apply for PPP 1 and 2 from March 30 until May 31. Approximately $73 billion in PPP funding remained unspent at the end of March, according to  SBA data . This post highlights some of the PPP changes for 2021. In general, PPP is an SBA-backed loan, issued by local lenders, to assist small businesses in replacing 2.5 months of payroll costs or replace owners compensation during the COVID-19 crisis. Recalculation of 1st draw PPP loans or 1 st time application A new