The first round of PPP money was gone so quickly, they needed to authorize more funds to get it out to the business that needed it the most. There are many reasons why the new round isn’t moving so swiftly.
25% Lower Revenue Test
Many of the entrepreneurs that I have spoken to don’t qualify under the new rules. They simply didn’t have a quarter in 2020 that was down 25%.
25% Capacity Rules Hinder Many
Others don’t want to apply because of the 25% capacity rules imposed upon them by the government. Since the only way to get it forgiven is to have payroll and they now need so few people given the lower capacities, it may not make sense for them to apply.
Lack of Forgiveness on First Round
Many are afraid to apply given the problems they are having getting the first round forgiven. Filing out the Form 3508 is a difficult and intricate process where many are having difficulties without the necessary outside help. They are afraid of getting another round that will cause them even more problems.
Employer Retention Credits Provide More Relief
In many instances, the ERC provides more relief than the PPP, so the clients aren’t applying in the first place. If you qualify for both, why would you accept less with the PPP?
Let me leave you with this.
This weather is officially getting on my last nerve. We are supposed to get another eight or nine inches of snow today and tomorrow. We aren’t supposed to get temperatures up in the 30’s until next week.
A few weeks ago we were all talking about how mild this winter was. What a difference a couple of weeks make. As I write this, I’m sitting in my office wearing two pairs of socks and a heavy sweater.
It came just in time for the kids to go back to school.
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. If there is anything you need, whether you are a current client or not, you have but to ask. I’m here and I remain,
Accounting Solutions Ltd.
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