Costs related to property damage and vandalism or looting due to public disturbances that occurred during 2020 that were not covered by insurance or other compensation.
#Congress mortgage stimulus program software#
Payment for any business software or cloud computing service that facilitates business operations product or service delivery the processing, payment or tracking of payroll expenses, human resources, sales and billing functions or accounting or tracking of supplies, inventory, records and expenses. The expanded program identifies additional permitted uses of loan funds, including:
The CARES Act allowed borrowers seeking loan forgiveness to use the loan proceeds to maintain payroll and cover other limited expenses such as mortgage, lease and utility payments. In both cases, no loan can exceed $2 million, a substantial decrease from the $10 million limit applicable to the initial PPP loans.Ī key change to the Paycheck Protection Program is the expansion of expenses for which the PPP loan can be used.
#Congress mortgage stimulus program code#
Borrowers may receive a second draw loan up to 2.5 times their average monthly payroll costs, or for entities in the accommodation and food service industry assigned to NAICS code 72, loans of up 3.5 times their average monthly payroll costs. An entity is eligible for a second draw loan if it employs no more than 300 employees and can demonstrate at least a 25% reduction in gross receipts in the first, second, third or fourth quarter of 2020 relative to the same quarter in 2019. The relief package also allows small businesses and nonprofit entities that exhausted their first PPP loan to obtain a second PPP loan, a “second draw” loan. A business must have been in operation on to apply for a PPP loan. Certain housing cooperatives, news organizations and trade associations are also now eligible for PPP loans. The legislation also opens up the possibility that certain small businesses in the bankruptcy process, which were previously excluded, may now have the opportunity to obtain PPP loans subject to a determination by the SBA Administrator and court approval. For example, the PPP provisions place several restrictions on eligibility including, with few exceptions, prohibiting publicly traded companies, companies created in China or having significant operations in China, and entities primarily engaged in political or lobbying activities from obtaining PPP loans. The new legislation modifies important components of PPP criteria. Notable Changes to the Paycheck Protection Program Small businesses in need of additional relief can begin to evaluate the revised Paycheck Protection Program rules and assess their eligibility to apply for additional PPP funding. 21, 2021, allowing the Biden administration to make this decision). Small Business Administration (SBA) is permitted to adjust the set-asides as necessary 25 days after the enactment of the legislation (which will be Jan. In addition, $25 billion of the new PPP funding will be set aside for second draw PPP loans for smaller borrowers with ten or fewer employees, or loans less than $250,000 in low-income or moderate-income communities. Of the more than $284 billion in additional funding allocated to the PPP, $35 billion is set aside for first-time borrowers, $15 billion of which will be set aside for smaller, first-time borrowers with 10 or fewer employees, or loans less than $250,000 in low-income or moderate-income neighborhoods.
Critically, the legislation also avoids a government shutdown. This current round of PPP funding extends through March 31, 2021, or until the funding is exhausted.
A crucial part of this overdue legislation is the more than $284 billion allotted for a new round of Paycheck Protection Program (PPP) funding. On December 27, 2020, President Trump signed into law the latest COVID-19 relief package, providing $900 billion in much-needed aid to individuals and businesses during the ongoing coronavirus pandemic.
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