March 5, 2021
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New PPP applications
Last week, we announced some exciting updates to the PPP. In addition to a dedicated two-week application period for businesses with 20 or fewer employees (if this is you, you can still take advantage of the exclusive window through March 10), the improvements included a new loan calculation for self-employed folks and PPP eligibility for borrowers with non-fraud felony convictions, student debt, and green cards.
The Small Business Administration (SBA) made good on these promised upgrades this week with updated versions of the applications to accommodate the changes. The following forms were released on March 3, 2021:
- First-draw PPP borrowers who don’t file Form 1040, Schedule C should use this form.
- Second-draw PPP borrowers who don’t file Form 1040, Schedule C should use this form.
- First-draw PPP borrowers who file Form 1040, Schedule C and elect to use gross income for their loan maximum calculation should use this form.
- Second-draw PPP borrowers who file Form 1040, Schedule C and elect to use gross income for their loan maximum calculation should use this form.
And of course, the first thing the Gusto team did was to update our PPP application guides so that you know your way around each of these new forms. Spoiler: They’re not any more pleasant than the previous eight—yes, eight—versions. You’re welcome:
ERC, explained
Another resource for employers we’re excited about is the expanded Employee Retention Credit (ERC). This refundable tax credit helps businesses with the cost of keeping their staff employed. Thanks to the Consolidated Appropriations Act, 2021, the benefit now provides 70% of qualified wages paid, up to $10,000 per employee per quarter for the first two quarters of 2021, and is available through July 1.
Check out our guide for several FAQs about the program, including:
- Eligibility, like whether you can apply if you have a PPP loan
- What “qualified wages” means
- How to calculate and claim your credit
Watchlist
Mar 11–25: How to Crowdfund with IFundWomen
It’s Women’s History Month, and what better way to celebrate than by getting that funding. IFundWomen has organized a weekly Zoom webinar throughout the month of March covering the basics of running a successful crowdfunding campaign and to connect women entrepreneurs with generous donors. Register here.
ICYMI: Economist Explains What’s Wrong With PPP 2
Gusto’s economist Luke Pardue recently released a report on why PPP 2 isn’t getting into the hands of small businesses, even after changes to make it more accessible. On Gusto’s live accounting show, On the Margins Live, Luke shares results from a Gusto survey on what’s holding small businesses back. Watch the clip here.
Top relief options for the week
- Visa’s She’s Next Grant Program offers $10,000 and a one-year IFundWomen Annual Coaching Membership to 60 Black women-owned businesses across six key cities in the US. Applications are open through April 16, 2021.
- Comcast RISE Investment Fund provides monetary grants to help Black, Indigenous, and People of Color (BIPOC)-owned small businesses grow as they navigate the challenges of the pandemic. Applications are open through March 14, 2021.
- California Small Business COVID-19 Relief Grant Program received an additional $2 billion for grants up to $25,000 for CA small businesses impacted by the pandemic. Of this fund, $50 million is reserved for nonprofit cultural institutions.
- See more relief options in our Small Business Relief Finder.
Want more small business news and resources? Check out past editions in our archive.
