Pandemic Relief Bill – 12/28/2020

The President signed the Pandemic Relief Bill on December 27, 2020. SBA and Treasury will issue guidance for lenders within 10 days. In the meantime, here are highlights of new small business emergency assistance:

      • PPP borrowers can apply for another PPP loan (if they have less than 300 employees, and have experienced a greater than 25% reduction in gross receipts during the first, second, third, or fourth quarter in 2020 relative to the same quarter in 2019. Loans may not exceed $2m)
      • PPP loan forgiveness is not taxable
      • Restaurants and hospitality businesses may be eligible for 3.5x monthly payroll
      • Additional categories of eligible expenses like PPE and weatherization
      • Live Venue Provision – grants up to $10M – for theatres, museums, music venues, etc
      • 501(c)(6) not-for-profit organizations will be eligible.  This includes Chambers of Commerce and Destination Marketing Organizations
      • EIDL grants will reopen
      • PPP loan forgiveness not reduced by EIDL grant amount
      • PPP loans under $150K- 1 page forgiveness application

What do you need to do?

  • Be prepared to apply when it becomes available
  • Figure out out your income by quarters vs. 2019
  • Contact potential lenders
  • If you don't have a business bank account get one
  • Keep a close eye out for application openings; deadlines
Virginia SBDC