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How Business Benefit From The New COVID Relief Bill
STATEWIDE Individuals are getting more stimulus checks and expanded unemployment benefits with the new COVID relief bill that has been passed by Congress.
The benefit for businesses, though, is likely even greater. The bill recharges the Paycheck Protection Program so businesses can get loans to help themselves stay afloat. But, the qualifications for getting a PPP loan may have changed compared to last time.
If your business is not eligible for another PPP loan, the bill does have you covered in other ways.
“Those businesses that have been hard hit, that have had declines in their revenue, but hang onto their employees can also get quarterly tax credits that are refundable for keeping their employees on staff,” said Leslie Boyd, a CPA in Fishers to WISH-TV.
Dec 21, 2020 / 07:58 PM EST
INDIANAPOLIS (WISH) The new stimulus bill provides $284 billion to extend the Payroll Protection Program, which had expired over the summer.
The bill also provides some tax relief for companies that received PPP loans and opens the door for a second round according to CPA Leslie Boyd, of Clifton Larson Allen.
“Those expenses are deductible and we have a second round for businesses that have been hardest hit where they can possibly apply for a second round of the PPP loan so that is a really big deal,” said Boyd.
There is another tax credit added to this bill for businesses that do not qualify for PPP loans, called the employer retention credit. This provides an avenue for companies to keep people working when the cash flow dictates otherwise.