(Update: Monday, December 28, 2020)

On Sunday night, President Trump signed legislation for $900 billion in coronavirus economic aid and $1.4 trillion in government spending and preventing a government shutdown. Here are some highlights related to small businesses that are in the stimulus plan.

The “Second draw” PPP loans put more emphasis on very small businesses, including those that have the following:

  • 300 or fewer employees AND
  • Had at least a 25% reduction in gross receipts in one or more quarters of 2020 when compared to comparable quarters of the year before (with some caveats for seasonal and newer businesses).

What your business may be able to access:

There will be a new, simplified application for loans of $150,000 or less, including loans that have already been made but not forgiven.

As with any issue related to taxes or money, it is critical to get advice from a trusted tax, accounting, banking, or other professional before making financial decisions.


PREVIOUS POSTS IN THIS THREAD

  • This is breaking news. The legislation must be signed by the President to become law. Most recent update: December 22, 2020. 5:04 PM
  • According to Politico, Sen. Ben Cardin of Maryland, the top Democrat on the Senate Small Business Committee, said he believed the window for so-called Paycheck Protection Program loans should reopen within a matter of days “because that process is understood.”
  • The timeline offered by the senior lawmaker indicated that the SBA and the Treasury Department face pressure to move quickly during the upcoming holiday week to revive the PPP, which was a major piece of the Covid-19 relief bill Congress passed this week.


  • Lawmakers have agreed on a $900 billion Covid stimulus package (December 21, 2020).
  • The legislation sets aside $284 billion towards forgivable small-business loans under a new iteration of the Paycheck Protection Program.
  • Small businesses that took a PPP loan and saw their revenues fall by 25% will be able to obtain a second loan.
  • Congress will also allow PPP borrowers to take tax deductions for covered business expenses.
  • The legislation is complicated and you should always check with your accountant, financial advisor before making any assumption.

Here are more provisions in the legislation related to small businesses and the pandemic.

  • Small businesses may receive a second PPP loan if they have fewer than 300 employees and can prove that their revenue has fallen by 25%.
  • $284 billion will be targeted to forgivable loans through the Paycheck Protection Program.
  • Generally, borrowers are eligible for PPP loan forgiveness if they apply at least 60% of the proceeds to payroll.
  • The maximum amount for a second draw will be $2 million.
  • The legislation also creates a simplified forgiveness application for businesses that took PPP loans under $150,000.
  • Firms that received a cash advance through the Economic Injury Disaster Loan program also will no longer have to deduct the advance from their PPP loan forgiveness amount.

Again, the legislation is complicated and you should always check with your accountant or trusted financial advisor before making any assumption or actions. We will continue to update this page.

Related Articles

3
How to Apply for a Small Business ‘Payroll Protection Program’ Forgivable Loan

Late on Friday, treasury secretary Steven Mnuchin tweeted that $1.8 billion in loan applications had been processed, mostly from community banks.

4
Unemployment Help From U.S. Federal Agencies (2020)

CareerOneStop.org is a good place to start. It can help with unemployment insurance benefits, job training, and finding a job.

5
Trump Signs the Bi-Partisan Stimulus Bill into Law (Update. 4.16.2020)

An unprecedented $2 trillion aid package designed to help the economy rebound from the coronavirus pandemic.

6
SBA Will Defer Existing Disaster Loans Through the End of 2020

The SBA says it is looking at every option to cut red tape to make it easier for small businesses to stay in business.

7
Small Business Optimism Index Drops Most in its History

Small business optimism sinks to record level — in just half a month.

8
White House Request for $250 Billion Small Business Loan is Stalled in Senate

The legislation requires a unanimous vote by the Senate.

9
Why $7.5+ Billion is Being Returned to Auto Insurance Policy Holders

With most of the country operating under stay-at-home orders, fewer accidents and claims happening.

10
How Coronavirus is Affecting Small Businesses in Some States More Than in Others

87% percent of small business owners surveyed said their business is hurting from coronavirus.

11
Update: Lawmakers and President on the Verge of Striking a Funding Deal

The deal may be agreed upon as early as Monday (4.20.2020)

12
80% of Small Business Loan Applicants Are Still Waiting

In a recent NFIB survey, 65% of the participants said they don’t believe the economy will fully recover until 2022.

13
SBA Slashes Disaster-Loan Limit from $2 million to $150,000

After initially telling businesses that individual disaster loans could be as high as $2 million, SBA has now imposed a $150,000 limit.

14
IRS Announcements Provide Guidance on Small Business Tax Issues and Tools

Do you have a tax-related question? You may find the answer here.

15
An Overview of the New & Improved Small Business Paycheck Protection Program

The PPPFA provides two new exceptions for borrowers to qualify for forgiveness even if their workforce isn’t fully restored.

16
How John Krasinski Grew ‘Some Good News’ Into Some Even Greater News?

How actor John Krasinski found ‘some good news’ in the era of coronavirus.

17
State-by-State Listing of COVID-19 Resources

Each state has its own unique listing of COVID-19 resources. Here are some from each.

18
Coronavirus (COVID-19): Small Business Guidance & Loan Resources (SBA)

Recommended strategies that employers can use now.

19
100+ BigCo CEOs Predict Dire Consequences if Congress Fails to Pass Small Business Pandemic Relief

100 CEOs called on Congress Monday to pass long-term relief to ensure small businesses survive the coronavirus pandemic.

20
Retailers (Large & Small) are Seeking a Nationwide Mask Policy

Since the onset of the pandemic, retailers — of all sizes — have been on the front lines of interactions with customers and suppliers.

21
President Trump Signs Small Business Loan Funding Bill

Funding package increases aid to small businesses, hospitals and Covid-19 testing.

22
Lawmakers, Officials are Preparing Significant Changes to PPP Loan Program

Both changes follow small business owners who say they can’t hire back staff while they are closed during the coronavirus pandemic.

23
Helpful Work-Related COVID-19 Articles from the U.S. Centers for Disease Control and Prevention

CDC resources and articles organized in a work-related table of contents.

24
Survey: Small Business Employees Say Covid-19 Could Lead to More Work-at-Home Adoption

Employees of companies — large and small — are bracing for the ongoing impacts of Covid-19.