If you missed the first two opportunities to receive your tax-free Paycheck Protection Program (PPP) cash, you have another chance.

The new COVID-19 stimulus act provides $35 billion for first-time applicants. $15 billion of the loans is set aside for first-time applicants that have 10 employees or less and less than $250,000 in low-income areas.

Many people hear that it’s a loan and think “why would I want a loan that I would have to repay.” However, this can be more like a tax-free cash gift that you will be receiving.

You will need to know how it works if you would like to take advantage of it.

First you will need to obtain your PPP tax-free money from a lender. It’s called a loan. However, you can turn it into tax-free cash.

Next, you can spend all the PPP money on yourself if you operate as a partnership or are self-employed. The money should be spent on payroll (including pay to you, if that applies), and other covered expenses. Covered expenses include expenses such as rent, utilities, interest, operations, suppliers, property damage, and worker protection.

And last, you will apply for loan forgiveness. You can get 100 percent loan forgiveness if you spend 60 percent or more of the money on payroll (including yourself if you are self-employed or a partner in a partnership).

Generally, the limit for your PPP cash is 2.5 times your business’s defined or deemed 2019 payroll. Deemed payroll for someone who is self-employed is based on the owner’s profit on 2019 Schedule C. For partners, it’s a more complicated calculation based on the 2019 self-employment income, with adjustments.

You can deduct the expenses that you paid with PPP loan that were forgiven.

There is a $10 million dollar limit on your initial PPP loan.

The PPP program provides a great opportunity for partnerships and self-employed business owners.

Fortunately, the Small Business Administration has made changes to the loan application and forgiveness process which has helped to define the process and help make it easier.

If you plan to get the PPP cash, the deadline is March 31, 2021.

The money is available on a first-come first-served basis. Don’t procrastinate and miss your opportunity to receive tax-free cash.

David Zubler is a tax accountant and Enrolled Agent in East Tennessee, providing tax strategies and representing clients before the IRS and has over 25 years of tax experience. He is the author of four tax books and is the founder and president of Your Tax Care.

The company provides business and tax education to the public at its website, YourTaxCare.com. David can be reached at (865) 363-3019 or contacted by email at david@yourtaxcare.com