The U.S. Senate has shared the legislative text for the COVID-19 emergency relief bills including additions for PPP and EIDL Funding.

This is a summary of the portions that relate to PPP and EIDL Funding.

• $300 billion to Small Business Administration
• Funding to allow to allow the hardest-hit small businesses to receive a second forgivable Paycheck Protection Program (PPP) loan. 
  • 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.  
  • Small 501(c)(6) organizations that are not lobbying organizations and that have 150 employees or fewer, such as local chambers of commerce, economic development organizations, and tourism offices, would become eligible for PPP.
  • Forgivable expenses are 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 are tax-deductible, consistent with Congressional intent in the CARES Act.
  • The loan forgiveness process is simplified for borrowers with PPP loans of $150,000 or less.
  • Set-asides are included to ensure that smaller borrowers and underserved communities get the help they need, such as: for small businesses with 10 or fewer employees; for loans made by small community lenders, including Community Development Financial Institutions (CDFIs), credit unions, small community banks, Minority Depository Institutions (MDIs), and farm service lenders; and for the Minority Business Development Agency.
• Funding for independent live venue operators, including eligible independent movie theatres and museums, affected by COVID-19 stay-at-home orders. 
• Extension of Section 1112 of the CARES Act, which provides payment of principal, interest, and associated fees on qualifying Small Business Administration (SBA) 7(a), 504, and microloans. 
• Funding for SBA loan products to increase guarantees on SBA 7(a) loans and reduce fees on 7(a) and 504 loans; provide loan subsidies for 7(a) loans; and provide Economic Injury Disaster Loan grant advances. 
• Includes re-purposing of $138 billion in unspent allocations to be reinvested in the PPP program

Subtitle B: Unemployment Assistance

• Extension of all pandemic unemployment insurance programs by 16 weeks, including PUA and PEUC, from their expiration at the end of December
• Ensure beneficiaries of Railroad Retirement Board received the same benefits as other workers
• Federal supplemental unemployment insurance benefits expanded by $300 per week for 16 weeks, from the end of December into April 2021
• $1 billion for state systems for technology modernization and fraud prevention
• Small administrative adjustments, e.g. to certification requirements and overpayment standards

Click here bill text of the Bipartisan COVID-19 Emergency Relief Act of 2020.

Click here for a summary of the Bipartisan COVID-19 Emergency Relief Act of 2020

Click here for bill text of the Bipartisan State and Local Support and Small Business Protection Act of 2020.

Click here for the latest information issued by the IRS on PPP Loan Forgiveness.

For guidance on CARES Act tax matters, please contact Lee Schmidt or other members of the A. L. Schmidt CPA Tax Practice.

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