Small Business Provisions in the COVID Relief Bill SMALL BUSINESS – $325 BILLION
- Requires SBA to carry out the small business provisions of the legislation “no later than 10 days” after the bill becomes law.
- $284 billion for Paycheck Protection Program (PPP)
- Extends PPP through March 31, 2021
- Provides second PPP forgivable loan for small businesses/non-profits w/300 or fewer employees that can demonstrate a loss of 25% of gross receipts in any quarter during 2020 when compared to same quarter in 2019
- Dedicated $15 billion set-aside for community lending institutions to increase access for minority-owned and underserved small businesses/non-profits.
- Expands PPP eligibility to local newspapers, hospitals, housing cooperatives, and 501(c)(6) non-profits.
- Restaurants and hospitality industries eligible to receive larger awards of 3.5 times average total monthly payroll rather than 2.5 times.
- Adds personal protective equipment (PPE), costs associated w/outdoor dining, and supplier costs as eligible/forgivable expenses
- Simplifies forgiveness process for loans under $150,000
- $20 billion for Economic Injury Disaster Loan (EIDL) Grant Program
- Small businesses/non-profits in low-income communities are eligible for $10,000 grants. If any of these entities previously received an EIDL Advance, they’re now eligible to receive the full $10,000.
- $15 billion shuttered venue operators (Save Our Stages bill)
- Grants of up to $10 million to live venues, independent movie theaters, etc.
- Grants can cover expenses like payroll costs, rent, utilities, and PPE.
- Two priority periods for hardest hit entities to have program access, and reserve fund made for the rest.
- $2 billion set-aside for entities w/fewer than 50 employees.
- Program authorized to make supplemental grants equal to 50% of initial grant.
- $3.5 billion for extended SBA Debt relief payments
- Funds allow continuation of debt relief payments of principal and interest (P&I) on small business loans guaranteed by the SBA under the 7(a), 504, and microloan programs.
- All borrowers w/qualifying loans approved by SBA prior to CARES Act will get 3 months of additional P&I starting February 2021.
- Payments will be capped at $9,000 per borrower per month going forward.
- Borrowers considered underserved will receive an additional 5 months of P&I payments.
- $2 billion for enhancements of SBA lending programs
- Funds to enhance SBA core programs like 7(a), Community Advantage, 504, and the Microloan program, to make them more affordable and useful for small businesses.
- $57 million also provided for SBA Microloan Program to provide technical assistance and leverage about $64 million in microloans for minority-owned and other underserved small businesses.
CLICK HERE to download Summary of all Coronavirus Relief Provisions
