Paycheck Protection Program: The Highlights

Congress has finally approved the second round of the Covid-19 relief package. In their article entitled Paycheck Protection Program Round 2: The Highlights published in The National Law Review, authors Michael A. Zalay and Jeffrey M. Schwartz breakdown what we need to know.

After much deliberation, Congress finally agreed to approve a $900 billion COVID-19 relief package as part of the Consolidated Appropriations Act, 2021. Included in that amount is $284 billion for a second round of the Paycheck Protection Program (PPP). The new relief package includes:

  • additional funding for new PPP loans

  • the ability to obtain a second PPP loan for small businesses facing significant revenue declines in any 2020 quarter compared to the same quarter in 2019

  • clarifications providing for the deductibility of business expenses paid with forgiven PPP loans (a material change from existing IRS guidance)

  • loan eligibility for Section 501(c)(6) not-for-profit organizations for the first time

  • $15 billion for live venues, independent movie theaters and cultural institutions

  • $20 million for the Economic Injury Disaster Loan Program continue reading