Kansas businesses can now apply for next round of PPP funding
TOPEKA, Kan. (WIBW) - Kansas businesses can now apply for another round of PPP loans.
Governor Laura Kelly says with the launch of COVID-19 relief programs for 2021, Kansans can now begin applying to the 2021 Federal Paycheck Protection Program for forgivable loans to small businesses.
“Kansas small businesses have been among those hardest hit by COVID-19,” Governor Laura Kelly said. “The Paycheck Protection Program is integral to keeping our state on the path to recovery. This is a good step forward, but we know the need for relief is great – and I will continue to push for additional stimulus funding to support Kansas’ economic recovery.”
According to Gov. Kelly, the Small Business Administration ad the Treasury Department lead the PPP program, which is federally administered and provide loans to small business to cover payroll expenses. She said the SBA began accepting applications through Community Financial Institutions on Jan. 11 and through all other financial institutions on Jan. 19. She said applications will be accepted through March 31.
“In the past year, the Paycheck Protection Program offered federal support to tens of thousands of Kansas small businesses, but we understand that the need is still great,” Lieutenant Governor and Commerce Secretary David Toland said. “This program exists to put federal dollars in the hands of small business owners who need them most. I would encourage Kansas small business owners to apply for this program to get more resources as our state continues to grow and recover from this enormous challenge.”
Gov. Kelly said during the distribution of PPP money in 2020, 54,000 Kansas small businesses got around $5 billion in funding. She said the 2021 PPP aims to make the program more helpful to small businesses and target the worst impacted industries through the following changes:
- Forgiveness has been simplified for borrowers of $150 thousand or less, with a self-certification option to attest funds are spent appropriately
- Hospitality businesses, including hotels and restaurants, are eligible for an increased loan total (3.5x monthly payroll)
- Eligible expenses paid for with forgiven PPP loans may now be deducted on taxes for 2020 and 2021 & employers are now eligible for the Employee Retention Tax Credit even after taking PPP funds (reverses earlier guidance from IRS)
- Employers no longer must deduct Economic Injury Disaster Loans from their PPP loan total (EIDL program was refunded with an additional $40B too)
- Additional categories are now eligible as non-payroll expenses (up to 40% of the total loan amount), with operational expenses (including software, cloud services, accounting services, etc.), supplier costs, damage from social unrest, and worker protection expenses
- Additional groups are eligible for loans, including 501(c)(6)s, housing cooperatives, and direct marketing organizations
According to the Kansas Governor, under the new program, $234 billion is available with $12 billion set aside for businesses in low-income and minority communities and $15 billion to grant dedicated to live entertainment venues. She said through Community Financial Institutions, the SBA wants to encourage greater access to PPP funds. She said businesses that have not gotten funds before are eligible for loans up to $10 million if they have 500 or fewer employees. She said businesses that got funds during the first round are eligible for up to $2 million in funding if they have 300 or fewer employees.
Information on where and how to apply can be found here.
Gov. Kelly said additional resources include:
- Information on Community Financial Institutions can be found here.
- Further general information on loans can be found here.
- Further questions can be directed to the Kansas Department of Commerce here.
Copyright 2021 WIBW. All rights reserved.