Congress Passes New PPP Legislation, Targeted EIDL Program
After an 11th hour agreement on December 20, Congress is set to pass a new funding bill that will aid small businesses across the US.
Most notably, the bill features a revived Paycheck Protection Program (PPP) as well as more funding for Economic Injury Disaster Loans. The full text of the bill was released the afternoon of December 22.
Per a summary shared by the Washington Post, specific provisions for small businesses include:
- $285 billion for first and second forgivable PPP loans.
- The PPP will include “dedicated set-asides” for “very” small businesses and lending via community-based lenders. The set-asides include lending through Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs).
- Expanded PPP eligibility for 501(c)(6)nonprofits, including destination marketing organizations, local newspapers, and TV and radio broadcasters.
- $20 billion in new EIDL grants targeted toward businesses in low-income communities.
- $3.5 billion for SBA debt relief payments.
- $2 billion for “enhancements” to SBA lending.
- $15 billion in dedicated funding for live venues, independent movie theaters, and cultural institutions.
- $12 billion in funding for CDFIs and the creation of a new “Neighborhood Capital Investment program” meant to support CDFIs and MDIs. The aim is to help businesses in low-income and minority communities weather the economic devastation born out of COVID-19.
Additionally, PPP recipients will be able to deduct the payroll costs and other expenses forgiven loans were used for, according to The Wall Street Journal. This benefit, which could save small businesses billions of dollars, comes despite the fact that forgiven PPP loans are themselves tax-free.
Beyond small business support, the bill also includes other, more general relief efforts, such as direct payment checks of $600 per adult and child and $300 per week of enhanced unemployment insurance benefits.
As of December 22, the House was expected to vote first on the bill. The Senate will then take final action, with no ability to amend the legislation as a government shutdown looms with a midnight deadline.
“We’re going to stay here until we finish tonight,” Senate Majority Leader Mitch McConnell said to reporters at the Capitol (per Bloomberg).
How To Get Your Business Ready For Another PPP Loan
Merchant Maverick will be working this week on updating our PPP content to reflect the latest changes accurately. Here’s a list of our articles that will be updated in the coming days:
- SBA Paycheck Protection Program (PPP) Loans Explained: How They Work, Who Qualifies, & Where To Apply
- Guide To PPP Forgiveness Rules, Qualified Expenses, & How To Apply For Loan Forgiveness
- Economic Injury Disaster (EIDL) Loans VS Paycheck Protection Program (PPP) Loans: What’s The Difference?
- How SBA Economic Injury Disaster Loan (EIDL) Emergency Advances Work & Where Your Small Business Can Get One
We may also write new articles as needed, so check back for our complete PPP coverage.