On Monday, a bipartisan group of senators unveiled a $908 billion coronavirus relief package that includes a second PPP loan. The second round of PPP loan funding is expected to be announced shortly as the expanding group of bipartisan lawmakers work to pass legislation by the self-imposed deadline of 12:01 a.m. Friday, December 18.
The new proposed bill, tentatively titled the Emergency Coronavirus Relief Act of 2020 (or ECRA) contains a $300 billion allocation of funds to the U.S. Small Business Administration, including a call to reauthorize the Paycheck Protection Program (PPP) and its unused $134 billion. The revisited PPP comes complete with a new set of eligibility requirements.
Read our full breakdown below.
Second PPP Loan Requirements and ECRA Highlights
An additional $300B in funds to the U.S. Small Business Administration
Second PPP loan available for the “hardest-hit” small businesses
Eligibility would be limited to small businesses with 300 or fewer employees that have sustained a 30 percent revenue loss in any quarter of 2020.
501(c)(6) organizations eligible for PPP loans. 501(c)(6) organizations that are not lobbying organizations and have fewer than 150 employees would become eligible for PPP loans.
Costs include supplier costs and PPE
Business expenses paid for with PPP loans become tax deductible
Loan forgiveness for loans under $150K are simplified
Funding for independent Live venue operators. Additional funding will be made available to independent live venue operators, such as like movie theaters and museums, affected by stay-at -home orders.
Funds set aside for smaller borrowers and underserved communities.
ECRA also includes:
Additional $300 a week of federal unemployment insurance
$6B for vaccine development and distribution
$7B for testing and tracing, directly to states and communities
$35B for Health Care providers
Continuation of payroll support for transportation funding
$10B of childcare stabilization grants
$13B for agriculture businesses and fisheries
$25B for rental assistance
Extension of student loan forbearance
How Businesses Should Prepare For The Second PPP Loan
Businesses should start gathering key information, such as 2020 revenue, and be prepared to pull bank statements and payroll reports. Companies that use PayNortheast's payroll service need not worry about running these reports as your account manager will email you copies of the required reports.
PayNortheast Is Ready For The Second PPP Loan
Companies that us PayNortheast's payroll and HR service can expect the same proactive level of support when applying for their second PPP loan as they received during their first PPP loan application. Your account manager will reach out to you to answer any of you questions and provide you with the required payroll reports so your second PPP loan application can be completed as soon as possible, giving you a higher chance of being approved before the funds are depleted.
Interested in switching your payroll service to PayNortheast? We would love to have you as a client! Learn more about PayNortheast by clicking here or emailing support@paynortheast.com