New Stimulus Deal Provides Second Round of PPP Funding for Small Businesses

After months of negotiations, members of Congress finally reached a deal that would provide some much-needed relief for small businesses across the country. It’s a lengthy bill with over 5,593 pages that was just released Monday night, but here is everything we know so far:

The Bill Overview           

• The $900 billion COVID relief bill includes support for small businesses, vaccine procurement and distribution, funding for schools, unemployment benefits, nutrition assistance, and more.

PPP and EIDL Information

• $325 billion has been dedicated to aiding small businesses.

• $284.5 billion has been allocated to a second round of forgivable Paycheck Protection Program (PPP) loans.

• $15 billion of funding is reserved for live venues such as concert halls, independent movie theaters, and cultural institutions.

• 501(c)(6) nonprofits, including destination marketing organizations, local newspapers, and TV and radio broadcasters are now eligible to apply.

• You can apply for a PPP loan even if you already received one during the first round of funding.

• You are allowed to deduct the expenses paid with both PPP and the EIDL (Economic Injury Disaster Loan) funds and the amount you receive is not taxable.

• There are new, eligible PPP expenses added to the bill such as repairs to damaged property due to looting or vandalism during the events of 2020, various expenses associated with business operations such as human resources or inventory management, and certain costs incurred to comply with COVID-19 health requirements.

Other Items Included in the Bill:

• The relief bill also includes an additional $300 per week of unemployment benefits valid until March 14, 2021.

• There will be a tax credit to support employers who are offering paid sick leave in accordance with the Families First Coronavirus Response Act which was enacted in March.

Next Steps

Before the bill can go into effect the Senate must vote. If it is passed, the President will then have to sign the legislation.

At SBG Funding, we recognize that these are unprecedented times, and we are here to help however we can. The situation is constantly evolving, and navigating loan options can be complex and overwhelming. That’s why we’ll be adding new information and resources for small business owners impacted by the pandemic on our COVID-19 Resource Center as soon as it becomes available.

As always, SBG Funding is dedicated to providing unparalleled support and in-depth financial proficiency to help you make the best decision for your business’s future.

*SBG Funding is not an agent or lender for PPP loans.  SBG Funding offers advisory services on a suite of commercial financing products and works with agents who specialize in helping small business owners looking to apply for PPP Loans.  As part of our service, we are happy to refer you to these agents and help guide you through the process at no charge.  You are not required to change your banking relationship in order to apply either!