The second stimulus bill has been signed and is aimed to help more small businesses and companies impacted by the pandemic. If your business will be receiving PPP and stimulus money, you should think about how to best maximize it. Here are a few things to consider.
Second PPP Loans Are Available
Now, second PPP loans are available for small businesses. The second wave of relief funds is focused on smaller businesses with fewer than 300 employees. If you are considering applying for these funds, it can be a great way to support your staff. For some businesses, it may be a way to re-open the doors. Those who have had to furlough employees or temporarily close can begin to look at re-staffing.
You Can Still Get Money From Your First PPP
You may also want to check to see if you are eligible for loan money from your first PPP. It is possible you were eligible and did not apply or were eligible for more assistance than you received. Now, it is possible to go back to this application and request more funding. If you did not receive the full amount of assistance available last year, it could be what your business needs to get through the next few months.
Pay Fewer Taxes
PPP loans and other relief loans being dispersed at this time are not being taxed. Prior to this relief bill, PPP funds were not eligible for deductions on tax returns. Now, PPP funds and grants will not be taxed. Additionally, if you use the PPP for tax-deductible purchases, you will still be able to take those deductions, even though the funds aren’t taxed.
Grants and Loan Forgiveness
In addition to PPP loans, there are also grants available to businesses who are struggling at this time. You can get up to $10,000 in EIDL grant money for your small business. These grants were released last year, but the funds swiftly ran out. Qualifying businesses can receive additional money if they were not able to claim the full $10,000 last year as well. There are stricter qualifications to get an EIDL grant this time around though, so keep that in mind.
For some businesses, there may be loan forgiveness available for these PPP loans as well. There will not be any automotive forgiveness, but if your loan amount is $150,000 or less, you can apply for forgiveness through the lender that provided the loan.
Use Your Stimulus to Add New Staff
If your company is receiving stimulus from the government to help your company come back, now is the time to hire new employees. The best way to maximize your PPP and stimulus money is by adding new talent to your team. If you have had to furlough or let go of employees, look at rehiring or searching for new recruits.
Top Notch Personnel Can Help Your Business
Putting together a good team will help improve your production and get your business back on track. Contact Top Notch Personnel to see how their staff of professional recruiters can help you.