PPP is back — but with some changes. Finally, Congress agreed to a $900 billion stimulus deal that has a $325 billion chunk of change set aside for small business owners and keeping the Paycheck Protection Program rolling. It’s important to pay attention to these small details, though, to ensure you’re eligible or understand the forgiveness requirements.

First off, if you have more than 300 employees, you’re out. Only businesses with 300 employees or less qualify for PPP loans. No surprise considering the number of large franchises and companies we saw take these loans out last time.

The good news is, any non-profit organization, tribal business, agricultural co-ops, housing cooperative, veterans’ organization, news organizations, sole proprietor, and self-employed individual is eligible — as long as there are 300 or fewer employees.

Second on the list is having a minimum 25% loss in gross revenue. You have to show that reduction in gross receipts from any 2020 quarter in relation to the same quarter in 2019. Businesses that are in the food services industry can borrow up to 3.5 times their monthly average payroll. That’s an increase of 1.5 times, and a higher amount than other businesses are eligible for.

Women-owned and minority-owned businesses are getting more help, too. The first go-around, only 12% of Latino and Black-owned businesses received PPP funding (if they applied), but this time there’s $15 billion set aside to be issued specifically to minority-owned companies. 

Are you applying for a PPP loan this time? Let us know by hitting reply!

Everyone’s Favorite Stalker Is on the Rise

Okay, so most people don’t consider 23andMe a “stalker”, but let’s be honest… the whole “we have your DNA, your address and your credit card information” is kinda creepy. Anyway — the DNA testing startup that society loves just raised $82.5 million in equity funding, with plans to reach $85 million in their latest round. 

Sequoia Capital and NewView Capital led the round. 

The company’s been around for 14 years and really saw a rise in popularity after a raise of $300 million back in 2018. That brings their valuation up to $2.5 billion and a total of $791 million in funding to date. 23andMe definitely needed an injection full of cash after a rocky year for them. The company laid off employees in January (pre-coronavirus) because business is slowing. 

Is that because they have too many competitors now, or the whole knowing your ancestry fad is over? Not sure. They did just get clearance from the FDA to start recommending certain drugs to users based on their genetics. That smells like a lawsuit waiting to happen.

BRRRR It’s Cold in Here

We’re full of the cheese today, sorry. BRRRR has nothing to do with the weather and everything to do with real estate. The new process stands for: Buy, Rehab, Rent, Refinance, Repeat and is exactly how small investors with barely any real estate or financial background are making upwards of $29,000 in cash per month. 

Erik Wright stumbled upon this method years ago. Erik and a few of his friends were living in another friend’s house, but once she got married she of course wanted everyone out. Erik decided to just buy a house down the street, have everyone move in, and pay rent. Erik bought a house that needed some TLC, but nothing heavy duty… he did all the work himself. Three years later, Erik moved, sold the house for about $18,000 more than he bought it for. Subtracting the downpayment and renovations, he pocketed about $5,500. 

Erik now does the same thing over and over again, building his New Horizons Home Buyers real estate portfolio with his wife. He’s got a few duplexes and single-family homes that bring in about $2,000-$3,000 every month.

If you’re ready to get into BRRRR, make sure to do your research. There are a lot of barriers to entry to this and you want to make sure you buy low. Use the 75% rule, which means the total cost of the property (purchase price and any rehab costs) shouldn’t total more than 75% of the property’s market value. Also, invest wisely in a good, quality contractor, even if it’s a little more expensive. Know that it won’t be perfect, and you might lose a little cash in the beginning, but just get started if you want to start raking in an extra five figures per month!

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