Paycheck Protection Program Updates
[Originally shared by The Chamber, Leading Business in Cabarrus on January 5, 2021]
At the end of December 2020, Congress passed and the President signed a COVID relief bill that creates a second round of Paycheck Protection Program (PPP) forgivable loans and provides other economic aid to hard-hit small businesses. Businesses eligible for the second round of forgivable PPP loans include:
- Businesses with 300 employees or fewer who had a 25% reduction in gross revenues between comparable quarters between 2019 and 2020.
- Businesses that did not apply for a round one PPP loan.
- Businesses who returned all or part of their original PPP loan.
- 501(c)(6) non-profits and Destination Marketing Organizations
- Local newspapers, T.V. and radio stations that were previously ineligible due to affiliations with other stations.
Additional provisions and funding were included to target minority owned businesses, increase funding availability for Accommodation and Food Service companies, and create set-asides for businesses with 10 or fewer employees and for loans made by community lenders. The law also eliminates the requirement that EIDL advances be subtracted from PPP forgiveness.
The legislation made favorable changes to Small Business Administration 7(a) and 504 loan programs and created a grant program for live venues, theaters, museums and zoos.
We are still awaiting guidance from the Small Business Administration as to when the program will open for applications and will let you know as soon as we hear. As always, we encourage you to consult with your banker and tax advisor if you believe that these programs may be of benefit to your business.
Finally, thank you to Senator Burr’s office for providing us with a detailed bill summary to help in preparing this recap.