Governor Kelly announces the Federal Paycheck Protection Program Reopens Applications for Forgivable Loans

Governor Kelly announces the Federal Paycheck Protection Program Reopens Applications for Forgivable Loans

TOPEKA – With the launch of 2021 Coronavirus relief programs, Governor Kelly today announced Kansans can start publishing applications into the 2021 Federal Paycheck Protection Program (PPP) for forgivable loans to smaller businesses.

“Kansas little companies have already been among those hardest struck by COVID-19,” Governor Laura Kelly stated. “The Paycheck Protection Program is fundamental to maintaining our state on the way to recovery. This is an excellent step of progress, but we understand the need for relief is very good – and I will continue to push for extra stimulus money to guide Kansas’ financial data recovery.”

Led by the small company management (SBA) and also the Treasury Department, the PPP is a federally administered system delivering loans to small enterprises to protect payroll costs. The SBA started applications that are accepting Community banking institutions on January 11 and through all the financial institutions on January 19, with applications accepted through March 31.

“In the year that is past the Paycheck Protection Program offered federal help to thousands of Kansas smaller businesses, but we realize that the requirement continues to be great,” Lieutenant Governor and Commerce Secretary David Toland stated. “This system exists to put dollars that are federal the arms of small enterprises whom need them many. I might encourage Kansas small businesses to utilize for the program to obtain additional resources as our state will continue to develop and get over this enormous challenge.”

Through the 2020 circulation of PPP cash, 54,000 businesses that are small Kansas received $5 billion in financing.

The 2021 PPP is designed to result in the system more desirable for smaller businesses and target the worst affected companies through the following changes:

  • Forgiveness happens to be simplified for borrowers of $150 thousand or less, with self-certification choice to attest funds are invested accordingly
  • Hospitality organizations, including resorts and restaurants, meet the criteria for an elevated loan total (3.5x month-to-month payroll)
  • Qualified costs compensated for with forgiven PPP loans may now be deducted on fees for 2020 and 2021 & companies are now actually entitled to the worker Retention Tax Credit even with taking funds that are PPPreverses previous guidance from IRS)
  • Companies not any longer must deduct financial damage Disaster Loans from their PPP loan total (EIDL system had been refunded with one more $40B too)
  • Extra groups are actually eligible as non-payroll expenses (up to 40percent of total loan quantity), with functional costs (including pc computer computer software, cloud services, accounting solutions, etc.), supplier expenses, harm from social unrest, and worker security costs
  • Extra teams meet the criteria for loans, including 501()( that is c, housing cooperatives, and direct advertising businesses

Beneath the program that is new $234 billion can be obtained with $12 billion earmarked for companies in low-income & minority communities, in addition to $15 billion in funds committed to reside activity venues. Through Community finance institutions, the SBA hopes to encourage greater use of PPP funds. Companies that never have gotten PPP funds formerly meet the criteria for loans as much as $10 million whether they have 500 or less workers. Organizations that gotten PPP funds throughout the round that is first eligible for up to $2 million in financing when they have actually 300 or less workers.

Info on where and just how to use is found right right here.

  • Information about Community banking Institutions can here be found.
  • Further information that is general loans can be obtained right here.
  • Further concerns could be directed to your Kansas Department of Commerce right here.

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