Update on PPP and Other COVID-19 Employer Relief
Originally published by: NLMDA — December 8, 2020
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The Paycheck Protection Program (PPP), which was created by Congress last March and provides forgivable loans to small businesses, expired on August 8 and has yet to be renewed. Both the House of Representatives and Senate have introduced bills over the last several months to restart the PPP but no legislation has cleared Congress to date. With COVID cases increasing across the U.S. this fall and some states implementing another round of business closures, there is a heightened sense of urgency on Capitol Hill to reauthorize the PPP and other Small Business Administration (SBA) relief programs.
Last Tuesday, a group of bipartisan members in the Senate and House released a new $900 billion COVID relief framework which would provide $288 billion for the PPP and Economic Injury Disaster Loan (EIDL) program. The proposal also includes employer liability protections and $300 per week in supplemental unemployment insurance for four months. This framework has not yet been drafted into legislative text but there is growing optimism in both parties that this proposal provides a good starting point for a final agreement.
Some members in the Senate believe that a higher level of funding is needed for PPP so Majority Leader Mitch McConnell (R-KY) is circulating his own proposal that would provide $332 billion for a second round of PPP loans and expand the eligible expenses to include safety costs. The proposal would simplify the loan forgiveness process and provide more flexibility for borrowers. It also includes employer liability protections. No formal text has been introduced.
Below is a comprehensive list of resources on how to apply for loan forgiveness if your business participated in the PPP.
PPP Loan Forgiveness Instructions and FAQs:
- How to Apply for PPP Loan Forgiveness
- Frequently Asked Questions (FAQs) on Loan Forgiveness
- SBA PPP Loan Forgiveness Website
PPP Loan Forgiveness Application – All Borrowers
Eligibility: This application is available for use by all PPP borrowers.
PPP Loan Forgiveness Application – EZ Form
Eligibility: This application is available for use by borrowers which: are self-employed and have no employees; or did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees; or experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25%.
PPP Loan Forgiveness Application – Simpler Form
Eligibility: This application is available for use by PPP borrowers that received a loan of $50,000 or less.