As small business owners struggle to stay afloat a little over a year after the COVID-19 pandemic struck, an extension for small business owners to apply for the second round of Paycheck Protection Program (PPP) funds has been granted, moving the March 31, 2021 application deadline to May 31, 2021. The extension is aimed at helping business owners by giving them more time as they navigate through the new requirements. The 60 day extension will also give the SBA much needed time to address processing delays and technical challenges with its PPP platform and disseminate much needed guidance for PPP and other COVID-19 business relief programs. Moreover, the extension also gives CPAs a longer period of to assist as many clients as possible with the PPP and other COVID-19 business relief programs. The trusted experts at Orlando based CPA Accounting & Tax Services outlines 3 key tips for small business owners planning on applying for the second round of PPP.
1. Apply Early – Get your application in early. Do not wait until the last minute as we saw what happened last time where banks had reached their processing capacity early on.
2. There are New Requirements – Familiarize yourself with the new requirements. For example, to apply for the second round of PPP, you must show at least a 25 percent gross receipts reduction for at least one quarter of 2020 compared to 2019 in order to qualify for a second PP draw. Many of the eligibility requirements have also changed to benefit smaller sized businesses and sole proprietors as noted in last month’s blog, PPP Round 2 Changes To Benefit Smaller Sized Businesses, Self- Employed and Sole Proprietors: https://www.cpaaccounting.biz/ppp-round-2-changes-to-benefit-smaller-sized-businesses-self-employed-and-sole-proprietors/
3. Keep Detailed Records – Once awarded PPP funds, make sure you keep detailed records. There is an enormous amount of scrutiny for every dollar of PPP money spent. We have seen clients have their PPP loan forgiveness applications rejected as they submitted that they paid certain bills with using credit cards that were reimbursed through their business bank account and they were required to show proof detailing these types of transactions before the loan would be forgiven. Let us guide you through the PPP process. Contact the professionals at CPA Accounting & Tax Services to help guide you through tax season and beyond. We specialize in Business Accounting Services, Individual Tax Services, Tax Preparation, International Tax Services, Tax Planning and Tax Resolution Services. We have offices in Orlando, Florida and service clients worldwide. Find out how we can serve all of your accounting needs by contacting us today.