By Janell Wilson, CPA – Partner
December 10, 2020
On December 9, 2020, legislators released a Framework Summary of the Bipartisan COVID Relief Act of 2020. The framework calls for an additional $300 billion to be released to the Small Business Administration, providing additional funding that would allow the hardest hit small businesses to receive a second forgivable Paycheck Protection Program (PPP) loan. Some of the highlights of this second PPP loan include:
- Eligibility would be limited to small businesses with 300 or fewer employees that have sustained a 30 percent revenue loss in any quarter of 2020.
- Forgivable expenses would be expanded to include supplier costs and investments in facility modifications and personal protective equipment to operate safely.
- Business expenses paid for with the proceeds of PPP loans would be tax deductible, consistent with Congressional intent in the CARES Act.
- The loan forgiveness process would be simplified for borrowers with PPP loans of $150,000 or less.
It is not yet clear whether any of the above highlights will apply to the first round of PPP loans. We are hopeful that negotiations will conclude quickly and a bill will be signed into law soon.
We will continue to closely monitor any new developments and keep you informed. If you have any questions, we encourage you to consult with your MichaelSilver advisor and our CARES Act team. We can be reached at 847.982.0333.