Updated and Expanded COVID Relief - Small Business Provisions
Dec 28 2020

COVID Relief - Small Business Provisions from the Small Business Committee

Paycheck Protection Program (PPP)

  1. Provides $284.5 billion dollars to reopen and strengthen the PPP for first time and second time borrowers
  2. Develops a process for a small business to receive a second PPP if the small business has less than 300 employees and can demonstrate a revenue reduction of 25 percent
  3. Maximum loan amount for a second draw PPP will be reduced to $2 million dollars
  4. Increases the PPP loan amount for NAICS 72 businesses (Accommodations and Food
  5. Service)
  6. Creates a simplified PPP loan forgiveness application for loans under $150,000 dollars whereby the borrower signs and submits a one-page certification that requires the borrower to list the loan amount, the number of employees retained, and the estimated total amount of the loan spent on payroll costs
  7. Strengthens lender hold harmless provisions for lending institutions
  8. Expands list of eligible expenses to include covered operations (software, cloud computing and other human resources and accounting needs); property damage costs due to public disturbances that occurred during 2020 that are not covered by insurance; covered supplier costs; and covered worker protection expenditures (PPE)
  9. Makes eligible 501c6s, destination marketing organizations (DMOs), housing cooperatives, newspapers, broadcasters, and radio stations
  10. Repeals the CARES Act provision that requires PPP borrowers to deduct their EIDL Advance from their PPP loan forgiveness amount
  11. Updates conflict of interest rules and prohibits publicly traded companies from PPP
  12. Provides a process for borrowers to request an increased loan amount if regulations were updated
  13. Codifies rules for faith-based organizations and churches to ensure eligibility remains intact
  14. Creates a farmer and rancher calculation


Grants for Shuttered Venues

• Creates a $15 billion dollar grant program for eligible venues, theaters, museums, and zoos


Economic Injury Disaster Loan (EIDL) Advance Program

  1. Provides $20 billion dollars to restart and extend the SBA’s EIDL Advance Grant for small businesses in low income communities
  2. Creates a process for existing EIDL Advance grantees that received less than $10,000 dollars to reapply for the difference between what they received and the maximum EIDL Advance Grant of $10,000 dollars
  3. Increases verification tools at the SBA to ensure accurate information is submitted on a grant application


7(a), 504, and Microloan Program Enhancements

• Provides $3.5 billion to resume the principal and interest (P&I) payments of new and existing small business loans guaranteed by the SBA under the 7(a), 504, and Microloan programs

  1. Supplies $2 billion dollars to enhance the SBA’s existing government guarantee loan programs, including the 7(a) Loan Program, the 504 Loan Program and the Microloan Program
  2. Waives borrower and lender fees within the 7(a) and 504 loan programs
  3. Increases the 7(a) loan guarantee to 90 percent
  4. Extends the $1 million dollar loan limit for SBA Express Loans
  5. Establishes a 504 Express Loan Program
  6. Enhances the Microloan program in order to provide financial and technical assistance to businesses impacted by the COVID-19 pandemic