(WSYR-TV) — The new COVID relief package went into effect this week and it provides another round of PPP money to help small businesses. Even if they’ve already gotten a loan, small business owners can apply for another one but it’s a little tougher to qualify this time around.
In order to qualify, you need to have 300 employees or less and this time there’s a revenue test. You need to show that your revenues have dropped at least 25% due to COVID at any given quarter this year. So to prove this, you take one quarter of this year and compare it the same quarter last year and if revenues are indeed down 25% or more you qualify.
And for most businesses, they’ll get a similar loan as before. That’s 2.5 months worth of average payroll in the form of a loan.
For restaurants and hotels, some of the areas hardest hit by the pandemic, they get up to 3.5 months of payroll.
But just like the last round of loans, only if businesses meet certain minimum costs like keeping people on payroll will the loan be forgiven tax-free.
So a really big benefit for businesses in this round of relief.
With Your Money In Your Pocket, I’m Rick Reagan.