Details Emerge on Federal Stimulus

It's a $900B package that restarts the Paycheck Protection Program (PPP), fills the SBA's Emergency Injury Disaster Loan (EIDL) program, and allows for businesses to use more than one program.  When signed, this stimulus would send dollars immediately into the economy.

Let's break down the details for businesses:

$284B in PPP dollars for small business:

• Expanded uses including Operations (technology, computers), Supplier Costs and Worker Protection items (PPE, safety items). 
• 60% must still be used on payroll
• Runs until March 31, 2021
• Second draw allowed for those who received the 1st round of PPP, to qualify for 2nd round: must show 25% decrease in revenues, limit to businesses with less than 300 employees and is up to $2M. (*Note: if this is your first time using PPP, the % in revenue decrease is not a requirement)
• Will be administered through your banker, through the SBA and is still first-come, first-serve

• Up to $10,000 per quarter can be credited (up from $10,000/year)
• 70% of qualifying payroll can be credited (up from 50%)
• Extended through June 30, 2021
• Can be used in conjunction with PPP as long as its not the same expense

• If you received a portion of the $10,000 up front grant (no payback) promised in the initial CARES Act, you can apply to receive the remaining amount.
• Fund is replenished and will be run through the SBA.  Applications will be submitted directly through the SBA website.
• You can use PPP dollars AND get full amount of EIDL.

• No tax on income from PPP AND business can deduct as normal expenses for monies used from the program both retroactively and moving forward.
• Business meals from a restaurant are 100% deductible in 2021 & 2022.
• Non-Profit 501c6 organizations qualify for PPP this time around.
• There are no dollars for state governments, but gives them another year to spend the initial CARES Act money.
• Does NOT include covid liability protection for business.