Shield Insurance Agency Blog

Welcome to the Shield Insurance Agency Blog. 

Here you will find a ton of articles on each of these topics: Auto Insurance, Boat/Watercraft Insurance, Business Insurance, Flood Insurance, Health Insurance, Home Insurance, Insurance, Life Insurance, Michigan Auto Insurance Reform, Recreational Insurance, Renters Insurance, RV Insurance, Things To Do At Home, Umbrella Insurance, and even a list of the Shield Agency Weekly Gift Card Winners,

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2021 MLB Season Guide - Shield Insurance Agency Blog

2021 MLB season Guide

Posted on by Shield Insurance Agency

Everything you need to know about MLB Spring Training, Opening Day, and more

March 19th, 2021

Last Oct. 27 at Globe Life Field in Arlington, Texas, Dodgers left-hander Julio Urías froze the Rays’ Willy Adames for strike three, closing out a 3-1 victory in Game 6 of the World Series and igniting a joyous Los Angeles celebration. The Dodgers had won their first championship since 1988, officially closing the book on the 2020 MLB season.

It also began the countdown to Opening Day, which is now fast approaching.

That also brings up many questions for fans, such as, “Is baseball coming back in 2021?” and “Will MLB allow fans in stadiums?” among other things. To help with that, here is a complete guide to everything you need to know about the 2021 MLB season.

MLB and COVID-19
Last year, the arrival of the coronavirus pandemic shut down Spring Training in mid-March and delayed Opening Day. Ultimately, the 2020 season did not begin until late July, and teams played a 60-game schedule, adhering to MLB’s strict COVID rules. They then embarked upon an expanded postseason, with the field widened from 10 teams to 16.

Nearly a year later, the pandemic persists, although ongoing vaccinations — including many at Major League ballparks — are providing hope. However, COVID-19 will continue to affect the MLB schedule in 2021, especially throughout Spring Training and early in the regular season. That will extend to both fans (in terms of how many are allowed to attend games) and players (who once again will have to abide by health and safety protocols, throughout Spring Training, the regular season, and the postseason).

Free agency and transactions

While the offseason got off to a slow start, most of the top free agents have now signed. That includes reigning National League Cy Young Award winner Trevor Bauer (Dodgers), center fielder George Springer (Blue Jays), catcher J.T. Realmuto (Phillies), second baseman DJ LeMahieu (Yankees), and left fielder Marcell Ozuna (Braves). There also have been some blockbuster trades, including the Padres’ deals for pitchers Yu Darvish (Cubs), Blake Snell (Rays) and Joe Musgrove (Pirates), the Mets’ acquisition of shortstop Francisco Lindor and pitcher Carlos Carrasco (Indians), and the Cardinals swap for third baseman Nolan Arenado (Rockies).

With that said, even with Spring Training now underway, some notable players remain on the free-agent market, including starting pitchers Rick Porcello and Cole Hamels. Clubs will continue looking to bolster their rosters ahead of Opening Day, especially as injuries cut into their depth.

Spring also tends to be a time when teams and players agree to contract extensions, as players often do not want to be involved in negotiations once the regular season begins. MLB already saw one huge deal in late February, with the Padres inking superstar shortstop Fernando Tatis Jr. to a 14-year pact. But there are many other extension candidates to watch.

MLB Tonight: Tatis Jr. extension

Spring Training

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Medical Stop-Loss Insurance - Shield Insurance Agency Blog

Medical stop-loss insurance: Helping health insurance corporate buyers keep pace with medical inflation

Posted on by Shield Insurance Agency

Shield Insurance Blog | stop-loss | Start A Quote Today!

Over the past ten years, healthcare costs have risen steadily each year as treatment and care options have become more sophisticated and advanced. As a result, corporate health insurance buyers are looking for more effective solutions to manage their healthcare spend, which is their biggest cost behind payroll.

For employers who choose to self-fund their health insurance programs, employer stop-loss insurance protects those groups against large or catastrophic claims, as an alternative to traditional group health insurance and benefits plans. The medical stop-loss insurance sector has experienced dramatic growth in recent years as more employers migrate to self-funded health insurance programs, which offer customizable coverage for employees with disciplined cost containment oversight.

Karthik Mohan, vice president of sales & distribution for the medical stop-loss group at Liberty Mutual Insurance, outlines how medical stop-loss insurance can help organizations keep pace with medical inflation. 

The value of medical stop-loss insurance for self-funded health insurance programs

Today, approximately 61% of U.S. employers self-fund their health insurance programs, according to the Kaiser Family Foundation’s 2019 Employer Health Benefits Report Annual Survey. Frequently, those same employers purchase medical stop-loss insurance, which is a financial management tool that transfers the liability risk arising from large, unexpected claims, like cancer treatments, new therapies for complex conditions, and organ transplants, to an insurance carrier – sparing the employer from unpredictable, catastrophic medical claim costs that can materially impact an organization’s cash flow and bottom line.

Medical stop loss insurance is typically offered with two types of deductible options:

  • Specific Stop Loss, or “Spec” deductible, for individual stop loss insurance. Coverage protects the self-insured employer in the event of a severe or significantly costly claim for an individual member of the group plan receiving the care, such as a rare cancer condition, new drug treatment or gene and cell therapies
  • Aggregate Stop Loss, or “Agg” deductible, for group claims. Coverage protects the self-insured employer that experiences medical claims under the group plan that exceed the cap placed on the policy term for the coverage.

Under these programs, the stop loss insurance carrier reimburses the employer for healthcare financial losses above the contractual policy deductible limit.

The growth of the stop loss insurance market

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Tax Day is May 17, 2021 - Shield Insurance Agency Blog

Tax Day is May 17

Posted on by Shield Insurance Agency

Tax Day for individuals extended to May 17: Treasury, IRS extend filing and payment deadline

IR-2021-59, March 17, 2021 | Tax Day | Start A Quote Today! | Shield Insurance Blog

WASHINGTON — The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021. The IRS will be providing formal guidance in the coming days.

“This continues to be a tough time for many people, and the IRS wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic, while also working on important tax administration responsibilities,” said IRS Commissioner Chuck Rettig. “Even with the new deadline, we urge taxpayers to consider filing as soon as possible, especially those who are owed refunds. Filing electronically with direct deposit is the quickest way to get refunds, and it can help some taxpayers more quickly receive any remaining stimulus payments they may be entitled to.”

Individual taxpayers can also postpone federal income tax payments for the 2020 tax year due on April 15, 2021, to May 17, 2021, without penalties and interest, regardless of the amount owed. This postponement applies to individual taxpayers, including individuals who pay self-employment tax. Penalties, interest, and additions to tax will begin to accrue on any remaining unpaid balances as of May 17, 2021. Individual taxpayers will automatically avoid interest and penalties on the taxes paid by May 17.

Individual taxpayers do not need to file any forms or call the IRS to qualify for this automatic federal tax filing and payment relief. Individual taxpayers who need additional time to file beyond the May 17 deadline can request a filing extension until Oct. 15 by filing Form 4868 through their tax professional, or tax software, or using the Free File link on IRS.gov. Filing Form 4868 gives taxpayers until October 15 to file their 2020 tax return but does not grant an extension of time to pay taxes due. Taxpayers should pay their federal income tax due by May 17, 2021, to avoid interest and penalties.

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Get Gardening Muscles in Shape and Prevent Injuries - Shield Insurance Agency Blog

Get Gardening Muscles in Shape and Prevent Injuries

Posted on by Shield Insurance Agency

Get Gardening Muscles in Shape and Prevent Injuries. Before digging, pruning, and planting, make sure you’re ready for the work

by Susan Moeller, AARP, March 15, 2021

Christine Zellers tries to run five miles every day and, at 53, considers herself to be in shape. But even she admits that gardening can leave her sore and achy.

“I feel it, especially in the beginning of the season,” she says. 

Zellers, an assistant professor of family and community health sciences with Rutgers Cooperative Extension of Cape May County, New Jersey, teaches gardening, leads group exercise classes, and grows vegetables and herbs in her own garden in Ocean City, New Jersey. To protect her body, she tries to remember to stretch and limber up before heading out to dig, plant, or lug big pots around.

“You want to be thinking about the kind of movement you’re going to do and make sure you’re strengthening those body parts, like your core and your back and your legs and your quadriceps,” she says. “So you want to warm up a little bit just like you would if you were going for a run or doing an exercise class.”

Click here for the rest of the story…

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Insurance Rates and Your Credit Score - Shield Insurance Agency Blog

Insurance Rates and your Credit Score

Posted on by Shield Insurance Agency

How credit affects auto insurance: Rates could increase up to 72%

Kacie Goff /October 15, 2020

Article Highlights

Before offering you a policy, insurance providers analyze your risk profile by looking at things like your driving history, as well as personal details, such as age or marital status. This evaluation is used in determining your premium. 

But there’s another somewhat surprising factor that affects your premiums in all but three states: your credit score. Unless you live in California, Massachusetts, or Hawaii, expect your credit score to affect how much you pay to insure your car, at least to some degree. 

You may already be familiar with your credit score as determined by the three major credit bureaus, TransUnion, Experian, and Equifax, it’s important to know that insurers assign you an insurance credit score that varies from your traditional credit score. While your credit score plays a role in that insurance score, additional factors are also involved.

It’s important to understand why credit affects car insurance. Carriers’ proprietary credit-based insurance score provides a way to check two things: your likelihood of making insurance payments on time and your likelihood of filing a claim.  

While insurance carriers use a more complex algorithm to calculate premiums based on your insurance credit score, for the sake of this study, Coverage simplified the ratings by classifying insurance scores into three general categories: “good,” “average” and “poor” credit. This is to give you a general idea of the premium impact by credit tier. 

Can credit scores be evaluated for auto insurance rates?

Short answer: yes, in most states. California, Massachusetts, and Hawaii are the exceptions here.

Michigan is a bit of a gray area, too. In Michigan, you might be mostly off the hook. Insurers can’t use your credit score, but they can look at your credit information. That means a low score won’t necessarily increase your rates, but a history of missed payments might make an insurance provider wary, and could ultimately affect your rates. 

Let’s look closer at why credit affects car insurance rates. Studies, including a Congress report by the Federal Trade Commission, have shown that a lower score means you’re a higher risk for your insurer. A poor score directly correlates to an increased risk of filing a claim. 

Click here for the rest of the story…

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Healthcare Enrollment 2021 Reopens - Shield Insurance Agency Blog

Healthcare Enrollment 2021

Posted on by Shield Insurance Agency

Healthcare Enrollment Period in Response to the COVID-19 Emergency

The coronavirus disease 2019 (COVID-19) national emergency has presented unprecedented challenges for the American public and Healthcare enrollment.  Millions of Americans are facing uncertainty and millions of Americans are experiencing new health problems during the pandemic.  Due to the exceptional circumstances and rapidly changing Public Health Emergency (PHE) impacting millions of people throughout the US every day, many Americans remain uninsured or underinsured and still need affordable health coverage. In accordance with the Executive Order issued today by President Biden, the Centers for Medicare & Medicaid Services (CMS) determined that the COVID-19 emergency presents exceptional circumstances for consumers in accessing health insurance and will provide a Special Healthcare Enrollment Period (SEP) for individuals and families to apply and enroll in the coverage they need. This SEP will be available to consumers in the 36 states served by Marketplaces that use the HealthCare.gov platform, and CMS will conduct outreach activities to encourage those who are eligible to enroll in healthcare coverage. CMS strongly encourages states to operate their own Marketplace platforms to make a similar enrollment opportunity available to consumers in their states.

Starting on February 15, 2021, and continuing through May 15, 2021, Marketplaces using the HealthCare.gov platform will operationalize functionality to make a Special Enrollment Period available to all Marketplace-eligible consumers who are submitting a new application or updating an existing application. These consumers will newly be able to access the SEP through a variety of channels: through HealthCare.gov directly, the Marketplace call center, or direct healthcare enrollment channels.  Additionally, consumers can work with a network of over 50,000 agents and brokers who are registered with the Marketplace, along with over 8,000 trained assisters, ready to assist consumers with their application for coverage.

To promote the SEP and ensure that a broad and diverse range of consumers is aware of this implementation, CMS will conduct an outreach campaign in cooperation with community and stakeholder organizations, focused on education and awareness of this new opportunity to enroll in English, Spanish, and other languages.  CMS outreach efforts will use a mix of paid advertising and direct outreach to consumers. Outreach efforts will include considerable awareness-building efforts to encourage the uninsured and those who come to HealthCare.gov to explore coverage to continue the process and enroll. CMS plans to spend $50 million on outreach and education, on a mix of tactics to increase awareness, including advertisements on broadcast, digital, and an earned media. 

Some consumers may already be eligible for other existing SEPs, Medicaid, or the Children’s Health Insurance Program (CHIP) – they can visit HealthCare.gov now to find out if they can enroll even before this new SEP.  Starting February 15, consumers seeking to take advantage of this SEP can find out if they are eligible by visiting HealthCare.gov, and are no longer limited to calling the Marketplace call center to access this SEP.  Consumers who are eligible and enroll under this SEP will be able to select a plan with coverage that starts prospectively the first of the month after plan selection.  Consumers will have 30 days after they submit their application to choose a plan.  Current enrollees will be able to change to any available plan in their area without restriction to the same level of coverage as their current plan. To use this SEP, current enrollees will need to step through their application and make any changes if needed to their current information and submit their application to receive an updated eligibility result that provides the SEP before continuing to enrollment. This SEP opportunity will not involve any new application questions or require consumers or enrollment partners to provide any new information not otherwise required to determine eligibility and enroll in coverage. In addition, consumers won’t need to provide any documentation of a qualifying event (e.g., loss of a job or birth of a child), which is typically required for SEP eligibility.

As always, consumers found eligible for Medicaid or CHIP will be transferred to their state Medicaid and CHIP agencies for enrollment in those programs.

For more information about the Health Insurance Marketplace®[1], visit: https://www.healthcare.gov/quick-guide/getting-marketplace-health-insurance/

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What Will Business Leadership Look Like This Year - Shield Insurance Agency Blog

What Will Business Leadership Look Like This Year?

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What Will Business Leadership Look Like This Year?

Business Leadership and Executives’ expectations for 2021 are high. Many hope to make up for everything that was lost, cancelled or postponed in 2020.

Overcoming the pandemic and political turmoil next year won’t be easy, and these challenges have a way of bleeding into the workplace. Internal leadership will be every bit as important as external needs.

Business leaders must be ready to support their teams mentally, professionally, financially and in every area in between. In 2021, the best leaders will:

Keep Their Spirits High

The events of 2020 were debilitating, distressing and downright exhausting. To keep employees not just motivated but excited to come to work, leaders have to set the tone.

Show up every day with a positive attitude. Make it a point to clock in before your team so you can greet each member as they arrive. Set calendar reminders to provide words of encouragement throughout the day.

Motivating people takes more than daily pick-me-ups, though. Set aside time with each team member to discuss their goals. Start with personal ones, and then discuss professional milestones that support both your business and their own objectives. Making progress together will be uplifting and inspiring for everyone.

Offer Radical Flexibility

One of the biggest trends to come out of 2020 is the sharp increase in remote work. Working from home allowed companies to continue operations while their employees stayed safe from COVID-19. 

The pandemic is far from over, and employees know other employers are also offering flexible scheduling. Going into 2021, radical flexibility will be required.

Some employees will feel more comfortable working from home all the time. Others may need just one day a week outside of the office. Others might want to work in the office, but only at night. Cater to as many different schedules as you can.

You can embrace flexibility in additional ways as well. Give employees freedom to decorate and rearrange their desks. Provide additional sick days to help them manage their mental health. As long as their productivity stays high, so should your willingness to be flexible.

Rethink Their Workflow

It’s one thing to let your team work a hybrid schedule or move into a home office. More difficult but just as important is revisiting their workflow.

Learn to do all that you can over digital platforms. If you have to send everyone home again in 2021, you don’t want it to be as much of a disruption as it was in 2020. 

Lean on project management systems like Asana and instant messengers like Slack to facilitate remote communication and file sharing. Look for efficiencies, such as writers self-editing their content, to reduce the number of people involved in each process.

Refine Their Culture

Company culture will be more important than ever in 2021. The economy is fluid right now, meaning that many employees are evaluating other opportunities. Make sure you give them a reason to stick with you. 

A strong culture is stickier than a larger paycheck. When a team feels like family, team members won’t want to leave simply because some other employer made them a slightly better offer.

Boost your company culture through regular activities that build relationships. Volunteer together. Sponsor an after-work activity, such as a happy hour, every once in a while. 

Take a Stand

Employees and consumers alike want to see companies take a stand on current issues. The challenge for business leaders is to know when, where and how to make a statement.

Look for worthy causes that everyone can get on board with. Nobody is going to object to a food drive. Everyone wants to see communities get access to shelter, education, food and clean water. 

Once you’ve identified a worthy cause, pause. Explain not just why you support the cause, but how it relates to your company’s mission and values. Otherwise, people might be suspicious or confused about the nature of your partnership. 

What if somebody does get upset? Welcome the discussion. Respectful communication helps teammates and customers better understand one another — and isn’t that what leadership is all about?

Business leadership has never been easy, but 2021 will put your leadership skills to the test. The good news is, you’ve already made it through 2020. Meet the new year’s challenges with grace, and you’ll cue your team to do the same.

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National Bath Safety Month - Shield Insurance Agency Blog

National Bath Safety Month

Posted on by Shield Insurance Agency

4 Tips for National Bath Safety Month

Keep the fun in the tub throughout the month of January.

Stay with her. 

The American Academy of Pediatrics recommends that children 4 and under always have a parent or caregiver present when they are near water, including the tub. Accidents can happen in an instant.

Prevent slips. 

Young children do not have the coordination or strength to hold steady if they lose their balance. Affix a slip-resistant plastic mat that suctions to the bottom of the tub and make sure the throw rug outside the tub does not slide when stepped on. Consider installing a grab bar for kids to hold onto when stepping in and out of the bath.

Test the temperature. 

Always wait until the tub is finished filling up before placing your child in the water, as the temperature can change. Set your home’s water heater to deliver water no hotter than 120 degrees to lower the risk of scalding. If you don’t have control over the heater, buy an anti-scald device that attaches to the faucet.

Beware of Sharp Edges

Use a rubber cover for the faucet head and drape a towel over metal rails for shower doors when your child is in the bath. Make sure any glass shower doors are made of shatterproof glass. Avoid bath toys with hard edges or points that could be hazardous if your child falls onto them.

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Independent Agent - Dave Ramsey's Number One Top - Shield Insurance Agency Blog

Dave Ramsey: Easiest Money-Saving Tip

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Dave’s Easiest Money-Saving Tip

4 MINUTE READ | DECEMBER 17, 2020 | Dave Ramsey | Term Life Insurance

Dave Ramsey on his radio show.
Dave Ramsey endorses Shield Insurance Agency

Everyone loves saving money—especially after the year we’ve just come out of. 2020 was a rough one, and there’s no denying people are looking for even more ways to save a buck or two going into the new year.

You probably already know some of the usual ways to cut back on your expenses—everything from packing brown-bag lunches to having an extreme no-spend month. But here’s an easy one you might not have thought of yet. And it could save you a lot of money.

So, what’s the secret we’ve got up our sleeve here? Shopping for insurance with the help of an independent insurance agent like Shield Insurance Agency! (Didn’t see that one coming, did you?) Hear us out, though. This easy-saving tip is worth your time!

The Difference Is the Dave Ramsey Name

Why is an independent insurance agent such an easy money saver, you ask? It’s all in the word independent. They’re not limited to a single insurance provider’s options. With access to a whole network of insurers, an independent agent casts a wider net to find you the best deals on the coverage that’s right for you. It’s like having your own personal shopper . . . but for insurance. Connect with Shield Insurance Agency today and save more. 

And you can feel confident knowing your independent agent doesn’t have a stake in the game when it comes to which provider or policy you choose. They don’t get paid extra for helping you choose a specific one—so, at the end of the day, the choice is yours!

Old Policies Aren’t Always Better

The only constant in life is change, right? We all know that. But a lot of people treat their insurance policy like a bottle of wine that just gets better with age. Spoiler alert: Insurance doesn’t work like that.

Never taking a second look at your insurance policy is a mistake that could cost you. In fact, a recent survey found that one out of every three Americans with homeowner’s or car insurance have never shopped around for better coverage. Ever. That means they could be missing out on new discounts that apply to where they’re currently at in life.

Did Junior get good grades this semester? Did you get married recently? Drive a different car these days? All of that might impact your insurance rates.

After 15 years with the same auto insurance company, Zach D. decided to give an independent agent a try. Now his family is saving $1,200 a year on the exact same coverage.

Dave Ramsey: It’s About More Than Your Bottom Line

You also shouldn’t have to sacrifice your coverage quality to save a buck. Saving money is awesome. But cutting costs shouldn’t mean cutting corners. A true pro takes time to walk you through your coverage options so you can make the decision that’s right for you.

Sadly, this basic level of service isn’t always part of the package. Many people don’t fully understand the details of their insurance policies at all. And if you’re confused about what’s covered and what’s not, that could really cost you. Things like floods, earthquakes, and normal wear and tear are not usually covered under a basic homeowner’s policy.2

So be sure you know what you’re paying for. No one wants to be surprised in the middle of a crisis when they’re trying to file a claim. Take our 5-Minute Coverage Checkup to make sure you have the right kind of coverage you need.

Brandi’s insurance premiums went up 10%. With help from her independent insurance agent, she cut her rate by 20% and got increased coverage with lower deductibles.

Start Saving Today

What would you do with an extra $700 or more to your name? That’s how much people save on average by having an insurance Endorsed Local Provider (ELP), like Shield Insurance Agency, check out their rates. With that kind of extra money, you could knock out your debt snowball, boost your retirement fund, or get hustling on paying off your mortgage. The possibilities are endless! So what are you waiting for?

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PPP 2.0 Paycheck Protection Program - Shield Insurance Agency Blog

PPP 2.0: Paycheck Protection Program, Round 2

Posted on by Shield Insurance Agency

5 Things To Know About PPP 2.0

By Gerri Detweiler
December 28, 2020

PPP 2.0

Update: The President signed a stimulus bill approving the second draw PPP loans on December 27, 2020. These business loans will likely be available sometime in the first few weeks of January. 

With cash buffers of just 27 days, small and medium-sized businesses (SMBs) are notoriously vulnerable. This year, though, the fight for business survival has been particularly difficult. 2020 saw numerous restaurants, gift shops, and salons shutter their doors—more than 100,000 businesses. That said, there are still countless business owners fighting to stay open, and this week’s headlines have brought newfound hope.

While slight, these changes are hugely important. This year, I saw firsthand why the first round of aid fell short for so many small businesses. At Nav, a fintech that helps SMBs secure financing, our team helped over 4,000 business owners secure loans through PPP, but we also saw many small businesses get left behind. A recent survey by Nav found that only 36% of the smallest U.S. businesses applied for PPP, as compared to 61% of mid-sized businesses. Many of these smallest businesses reported opting out of the process due to its now-famous complexities or a lack of the sheer resources required to apply.

In this article, I’ve pulled from the over 5,000 pages of legislation to distill five key points about the new round of PPP loans. This won’t be fully official until a bill is signed, but for now, here’s what you need to know:

1—This round of PPP .02 is meant to target smaller businesses impacted by COVID-19

From the top, changes to eligibility requirements make it clear that the second draw PPP loans are meant to better target smaller businesses negatively affected by the pandemic. Not only must eligible businesses qualify as a small business according to SBA industry revenue standards, but they also must employ fewer than 300 employees, and have suffered at least a 25% gross revenue reduction in at least one 2020 quarter compared to 2019, with alternative calculations for seasonal businesses and those not in business for all of 2019.

Beyond this eligibility approach, a draft of the proposed stimulus bill indicates that the use of funds will be more flexible. It’s true that both rounds are very payroll-focused, but this round adds new categories of eligible non-payroll expenses businesses have had to invest in to weather this pandemic, like PPE or delivery software. This is important for small business owners because that means they can use the money for critical operations costs to stay afloat.

2—There are some very favorable tax changes for small businesses. 

Separately, there are some very favorable tax changes. Neither PPP funds nor EIDL grants are taxable. In addition, businesses may still deduct eligible expenses paid for with PPP or EIDL funds. Before EIDL grants were taxable and businesses could not deduct expenses paid for with PPP funds. Borrowers who got an EIDL grant had to deduct this from their PPP loan for forgiveness purposes, effectively saddling them with a loan for that amount. That will be eliminated retroactively.

The ability to subtract EIDL from PPP forgiveness (combined with the fact that SMBs can still deduct qualified expenses paid for with PPP/EIDL) means business owners will avoid a bigger tax bill and ultimately gain more value from stimulus funds.

3—Even if you received funds in the first round of PPP, you may qualify for a second loan.

Of course, new applicants are welcome as well as long as they qualify, but what if you already received PPP funding? Turns out, you may be welcomed back. Businesses that got a PPP loan in the first round can apply again so long as they are eligible.

Now, what if you returned portions of your loan? If you return all or part of your PPP loan, you may apply for an “amount equal to the difference between the amount retained and the maximum amount applicable.” Or, if you did not accept the full amount you may request a modification to allow you to borrow the full amount for which your business is eligible.

4—The maximum PPP loan amount for a single business is $2 million.

Down from the $10 million maximum loan in the CARES Act, the maximum loan amount for any business getting a second draw loan is $2 million. This means fewer businesses will get large loans that crowd out smaller businesses. For context, the total budgeted amount for these new PPP loans is just over $284 billion. And, as with the first round of PPP, businesses may be eligible for full forgiveness of these loans if proceeds are spent properly within a specific time period.

5—For full forgiveness, borrowers must spend the majority of the loan on payroll. 

Similar to the first round of PPP, this program is primarily intended to keep employees (including the business owner or independent contractor) on payroll. To obtain full forgiveness, borrowers will need to spend at least 60% of loan proceeds funding on payroll, specifically, compensation of up to $100,000 per employee plus payment of a variety of other compensation expenses including the newly added group life, disability, vision, or dental insurance.

While these are key takeaways from the PPP-specific terms of this Act, it’s worth noting that other forms of relief may be authorized as well. If approved, the Act will bring another $20 billion in new EIDL grants into play, offering up to $10,000 in funds that don’t have to be repaid. That includes businesses that may not have received the full amount in round one. From here, join me in crossing your fingers for speedy approval of this legislation, and cheers to what’s looking like a brighter 2021.

Gerri Detweiler is Education Director at Nav.

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