The following content is informational only. When making financial decisions, we invite you to consult qualified professionals.
Following a lengthy debate, Congress and the President have recently passed an extra $900B stimulus package in response to the COVID-19 outbreak. This instantaneous relief package will filter more cash into the industry and provide additional support for small and midsize businesses, including another round of forgivable loans.
We’ve assembled a guide below to help you interpret the possible impact of the new relief bill, and navigate what it might mean for small businesses like yours. Whenever you have previously obtained PPP (Paycheck Protection Program) forgivable loans, you can reach out to your lender to ascertain if you are eligible for another loan. For those who have not previously applied, you might apply now through your lender, or our partner Womply.
The new $900 billion stimulus package focuses on small business aid, cash transfers, unemployment insurance, and other benefits to education and health care, including:
$284 billion in new PPP loans for small companies .
Another set of forgivable loans for businesses that can show significant losses in 2020 in their 2019 revenue, together with funding for companies that didn’t get PPP money in the first round. Borrowers with fewer than 300 employees that had a 25 percent drop in earnings from a year earlier in at least one quarter may qualify for a further loan. The new bill expands the list of expenses that a loan could be used to pay, such as payroll, rent, utilities, supplies from vendors, and protective equipment for their workers or to fix property damage. Moreover, in case that you opened recently, you still may qualify for this round.
There’s also additional funds for targeted EIDL grants as well as earmarks for minority-owned businesses, and other new sorts of businesses. We welcome you to be considerate about assessing your eligibility for this second round, either through your lender or through our partner Womply if you need help getting started. Read more about this app here.
Fixed PPP tax deductions. The bill also dealt with a substantial issue with the PPP: the deductibility of expenses paid for with the forgivable loan. Now, the bill explains that purchases made with PPP loans will be allowable for tax purposes.
$166 billion in stimulation tests to families. Similar to the April CARES Act $1,200 direct payments, this is supposed to create demand in the market and may be delivered to you. Most adults will get $600, even though the payment declines based on earnings. For every determined, the payment is an additional $600. Read more about this app here.
Expanded unemployment benefits. The unemployed will receive a $300 weekly national enhancement in profits for 11 months, by the end of December through mid-March. This is half of the prior national growth, which ran out at the end of July. Read more here.
Other support across the economy, including education and health care .
This includes funding for schools and universities, the transportation sector, vaccine distribution, food assistance, and rental assistance. Furthermore, it extends an eviction moratorium through January 31, 2021.
Having said that, the legislation also excludes two of the toughest issues which delayed negotiations for months: funding for state and local governments, and liability coverage for businesses against COVID-related lawsuits.
You can read a review of this bill here, or read the whole invoice here.
the method to browse rent relief
We’ve heard from a lot of you which you’ve been able to attain rent relief from your landlords. Make sure to check out our blog post on negotiating commercial rent with tips from a real estate specialist to ascertain whether you’re ready to get your cost down. You may explore inquiring about pandemic clauses in any new leases or lease addendums, to be sure you’re protected if there is another government lockdown.
We’re here for you
We’ll continue to share resources and supply you with informative content on these policies may impact your businesses. From all of us at Faire, we’re wishing you a healthy and safe new year.