With the recent passage of a new bipartisan stimulus bill, Congress has authorized additional provisions for the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan Program (EIDL) administrated by the Small Business Administration. The bill also authorizes dedicated funding for arts venues. We wanted to make sure our Fountain Hills businesses are aware of these changes. Please review the updates below. We recommend reaching out to your banking institution or the local branch of the Small Business Administration with any questions.
Paycheck Protection Program:
• An additional $284 billion is allocated to this program.
• Forgivable loans are now capped at $2 million per business.
• Publicly traded companies no longer qualify.
• 501©6 nonprofits and local news outlets are now eligible.
• Restaurants and hotels can now apply for up to 3.5 times their monthly payroll. Other businesses remain eligible for up to 2.5 times their monthly payroll.
• Forgivable loans can now be used to pay for supplies from vendors, protective equipment for employees, and property damage due to public disturbances in addition to payroll, rent, and utilities.
• Businesses that have fewer than 300 employees and have seen a 25% drop in sales from last year are eligible to apply for a second loan.
• Qualified expenses made with loan funding will be tax deductible.
• The application for loan forgiveness for businesses with less than $150,000 in loans has been simplified.
Economic Injury Disaster Loans:
• An additional $20 billion is allocated for this program.
• Companies that receive grant funding as part of an EIDL application will no longer have to deduct these funds from the forgivable amount of a PPP loan.
Funding for Arts Venues
• A grant program administered by the SBA will provide $15 billion to theaters, museums, zoos, and live event venues.
• Grants will provide up to six months of payroll, rent, utilities, and maintenance.
•Entities that have lost at least 25% of their revenue will qualify.
• Entities that have lost 90% or more of their revenue will be able to apply for grant funding first.
• Program should open for first applicants in approximately two weeks.