The New Stimulus Package Provides Financial Support for Small Businesses

The New Stimulus Package Provides Financial Support for Small Businesses

December 28, 2020
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OVERVIEW

A second round of the Paycheck Protection Program (PPP) will be administered by the Small Business Administration’s (SBA) network of lenders.

PPP DETAILS

  • Who can apply: Businesses with fewer than 300 employees and have suffered revenue declines of more than 25 percent in any given quarter this year compared to last year.
  • If you already have a PPP loan: You can apply for a “second draw” through your lender if you can show a 25 percent reduction in gross receipts in the first three quarters of 2020 relative to the same 2019 quarters.
  • Available loan amount: Loans can be for 2.5 months (up to 3.5 for restaurants and accommodation businesses) of average monthly payroll costs plus an additional 25% of that amount up to a maximum of $2M. Choose an 8 or 24-week forgiveness period.
  • Loan Forgiveness: Use these costs: payroll, payroll-related expenses (including benefits) and all rent and mortgage interest, operation expenses, property damage costs not covered by insurance, supplier costs, and investment in personal protective equipment.
  • Deduct your PPP forgiveness expenses: Any expenses you use to apply for forgiveness are now tax deductible - consult your tax advisor.

ADDITIONAL RESOURCES

Get more detailed information here and consult with your tax advisor.

ADDITIONAL HIGHLIGHTS

  • Economic Injury Development Loans: available through the SBA for all of 2021. $20B more has been allocated to this program.
  • $15B for SBA grants up to $10M to live venues, independent movie theaters, and cultural institutions.
  • $15B for lending through community financial institutions, to increase access for minority-owned and other underserved small businesses.

APPLY NOW

Apply through any existing SBA lender or through any federally insured depository institution, federally insured credit union and Farm Credit System institution that is participating.

Access approved SBA lenders here.

Download a sample PPP application from the SBA here. How you apply (online, in person) will vary by lender.