[1] with respect to the Paycheck Protection Program (
Economic Aid
Act)) of Division N of the Consolidated Appropriations Act, 2021. The PPP was originally enacted under the Coronavirus Aid, Relief, and Economic Security Act (as amended, supplemented or otherwise modified from time to time prior to the enactment of the Economic Aid Act, including by the Paycheck Protection Program and Health Care Enhancement Act, the Paycheck Protection Program Flexibility Act, applicable federal regulations and interpretive guidance issued by the SBA and Treasury, the
CARES Act).
First Draw PPP Loan), while expanding the authorized uses for PPP loan proceeds and increasing flexibility to obtain loan forgiveness. The Economic Aid Act also permits an eligible business that received a First Draw PPP Loan to apply for a second draw of PPP loan proceeds (a
“It was a huge relief,” Sepinuck said. “I’m not saying we would’ve gone out of business had I not gotten it. But I didn’t know that at the time.”
Eventually, demand for COVID-19 related signage surged. And with the federal government set to forgive that emergency loan – and waive any taxes Sepinuck might have owed the IRS on that debt – Sepinuck felt like he had weathered the storm.
But with tax season approaching, Sepinuck and scores of other business owners in Massachusetts are discovering a painful reality: Those PPP loans could still carry a hefty tax bill, courtesy of the commonwealth.
Happy State Bank Accepting Small Business PPP Loans
Happy State Bank is now accepting applications for the third round of pay check protection loans for small businesses. Happy State Bank says they will begin processing the loans applications Friday January 15 after business hours. You can apply here.
The stimulus package passed last month included $284 billion in funding to restart the small-business relief effort, which made $523 billion in loans last year to 5.2 million recipients. The new funding will be available both to first-time applicants and to some returning borrowers.
Borrowers seeking a second loan will need to demonstrate a 25 percent drop in gross receipts between comparable quarters in 2019 and 2020. Second loans will also be limited to companies with 300 or fewer workers, and the amounts will be capped at $2 million.