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