IMPORTANT UPDATE: Status of Stimulus Package Related to PPP Loans
On December 21st, Congress passed a new COVID-19 economic stimulus bill that was signed by President Trump on December 27th. After the bill is signed into law by the President, the Treasury and the Small Business Administration will have 10 days to implement the amended law. As we head into the Holiday season, this can delay the process. At this time, the bill appears to be heading back to the house for a vote on increasing the stimulus from $600 to $2000. As we await further guidance here is what we know so far:
Authorized $325 Billion for PPP, EIDL and other small business assistance.
Eligible borrowers
Fewer than 300 employees
Must have a reduction in quarterly revenues of at least 25% compared to the same quarter in 2019
Stock not traded on the National Exchange
501 (c) (6) are eligible, but any Entity for which lobbying comprises more than 15% of receipts or activities in not eligible.
Maximum loan – 2.5 times average monthly payroll or $2 Million, whichever is less. Businesses in restaurant and hospitality industries are eligible for loan for 3.5 times average of monthly payroll.
Interest rate as term 1% 5 years
Eligible Expenses – The Bill expands the eligible expenses to include PPE expense, costs associated with outdoor dining and supply costs, but payroll expenses must still comprise no less than 60 percent of eligible expenses.
Please contact our Staten Island, NY CPA office for assistance in determining your eligibility under the 2nd round of PPP.
David C Egan, CPA
718-227-6035
www.gosucpa.com
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