On December 27, a new Coronavirus Response and Relief Supplemental Appropriations Act of 2021 was signed into law. This new relief package includes an additional $284.45 billion in funding for Paycheck Protection Program (PPP) loans to help small businesses.
In addition to providing funds for first-time borrowers, the new law provides small businesses with an opportunity to apply for a second PPP loan if they have fewer than 300 employees and can show a reduction of at least 25% in revenue in 2020 compared to their 2019 revenue.1 The maximum loan amount for PPP second-time borrowers is $2 million.
We are currently working on a way to support our customers during this next round of PPP funding. Once we have more information to share, we will inform all of our eligible customers immediately.
The new law calls for a simpler loan forgiveness application for PPP loans of $150,000 or less. Therefore, we’re continuing to build out our online forgiveness experience within QuickBooks Capital based on the latest guidance.