January 8, 2021
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Where to apply for your PPP round 2 loan
It’s official: The Small Business Administration (SBA) is preparing to start accepting Paycheck Protection Program (PPP) round 2 applications from underserved new borrowers next Monday (January 11) and from second draw PPP borrowers next Wednesday (January 13).
If you applied for a PPP loan during its first run in April, you probably know that the lender you choose can make a big difference in securing your funding. For many micro- and minority-owned businesses, it wasn’t big banks that helped them access PPP loans but rather alternative lenders, like fintech companies, local banks, and CDFIs (Community Development Financial Institutions) or MDIs (Minority Depository Institutions).
If you’re planning to apply this round, we’ve compiled lists of which institutions are participating across the spectrum of lenders so you can find the right one for your business:
We’ll keep these lists updated as new lenders confirm their participation and others max out their applications.
All the stimulus things
The latest COVID-19 relief package, which was signed into law on December 27, has a whole lot more than just PPP round 2 that small businesses can take advantage of to support their employees and keep their lights on this winter. For example, did you know the latest stimulus package…
- sets aside money for CDFIs to get funds to businesses in disadvantaged communities?
- has funding earmarked for certain industries, like entertainment venues and childcare centers?
- enhances several SBA lending programs with months of waived principal and interest payments?
Yes, we’re as hyped about PPP applications reopening next Monday as you probably are. But, don’t overlook the many other programs that can support your business.
Check out our full breakdown of the new stimulus package here, with helpful guides on several of the programs targeted toward SMB relief.
WATCH: A team of Gusto’s legal and finance experts will break down the full relief package, including what’s new with PPP and EIDL, next week in a free webinar live on YouTube. Join us on Wednesday, January 13, at 11am PT | 2pm ET, as we cover what’s new with COVID-19 relief programs and answer your questions live.
Tax-free PPP
Speaking of PPP hype, this is the most exciting tax news we’ve gotten to report since the nation collectively got a three-month filing extension last year.
Under the latest COVID-19 relief package, not only was the PPP extended and expanded, the government also made some important clarifications on PPP loan taxability. We’ve known that PPP loans would not be taxable, but under the new law, any forgivable PPP expenses are tax deductible, too.
That means you no longer have to worry about PPP expenditures inflating your taxable income. This should spare many PPP borrowers from a hefty bill come tax filing season, so be sure to spend those loan proceeds according to the guidelines to ensure they are both forgivable and deductible.
Read more about how PPP loans will impact your taxes here.
Top relief options for the week
- Jane Walker and IFundWomen have teamed up to help create more opportunities for women to achieve their goals. Through this program, 15 groundbreaking women-owned businesses will be selected across the Entertainment & Film, Music, Sports, Journalism and Hospitality industries to receive a $10,000 grant plus a one-year Annual Coaching Membership on IFundWomen.
- State of California will be distributing $500 million in small business relief grants. Small businesses and nonprofits impacted by COVID-19 can apply through January 13, 2021. Grants range from $5,000 to $25,000.
- Empire State Development Corporation announced a new program that will provide grants of up to $5,000 to help restaurants struggling during the COVID-19 pandemic. Restaurants can apply to the Rising the NYS Bar Restaurant Recovery Fund starting Monday, January 11, 2021.
- City of Chandler, Arizona’s “I Choose Chandler Business Hiring and Retention Program” is designed to provide businesses with a maximum of $10,000 for keeping full-time employees hired during the coronavirus pandemic.
- See more relief options in our Small Business Relief Finder.
Want more small business news and resources? Check out past editions in our archive.
