On Monday July 27th, a new federal bill called the Continuing Small Business Recovery and Paycheck Protection Program Act was proposed that would bring additional money to the businesses most in need of it. This bill is intended to address some of the challenges that PPP borrowers have been encountering, while providing new opportunities for many business owners .This will be the most significant legislation since the CARES Act was passed in March.
This proposed legislation includes a second round of PPP loans for businesses that have suffered a 50% loss in revenue, and have fewer than 300 employees. These PPP loans cannot exceed $2,000,000 in most cases. The combined loan amount also cannot eclipse $10,000,000 if another PPP loan was borrowed within the last 90 days.
This will be most impactful for businesses like restaurants that are open, but at limited capacity due to state Covid-19 measures. If you think your business would benefit from this program, sign up for our emails. We will also give you our FREE guide: "The 12 Secrets Your Bank Did NOT Tell You About Getting Your PPP Loan Forgiven".
Some other noteworthy details regarding Covid-19 relief are listed below:
- A new round of stimulus checks of $1200 each for those earning $75,000 or less per year.
- $200 per week in federal unemployment assistance. This replaces the $600 per week that expires at the end of July.
The bill will, undoubtedly, be subject to criticism and negotiation. However, we know a lot more about the virus and its effect on our country now than we did in March.
Stay tuned for future updates.
P.S. Don't forget about our estate planning virtual event next week where I will explain the 3 Estate Planning Documents Every Business Owner Needs. To register for the virtual event click here.