Stimulus bill to launch second wave of PPP

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As 2020 comes to a close, a $900 billion relief bill passed by U.S. Congress Monday night is set to launch a second round of Paycheck Protection Program funding and aid to industries most impacted by COVID-19.

The many-faceted bill allocates some of its largest provisions — $45 billion – toward transportation funding, while a total $48 billion has been set aside for the purchase of new free-of-charge COVID-19 vaccines, vaccine distribution and testing, according to a recent news release.

Approximately $284 billion will go toward a reopened PPP fund, while $10 billion has been set aside for the early child care sector, $15 billion for live entertainment venues, $16 billion for community development financial institutions and minority depository institutions and $13 billion for farmers.

Current PPP recipients can take out a forgivable loan from the second wave of funding if they are able to prove ongoing revenue losses, while a $20 billion boost to the Small Business Administration’s Economic Injury Disaster Loan pool will also open up additional funding for hurting businesses, according to the release.

 Qualifying adults and dependents will receive $600 stimulus checks, while the additional $300 unemployment program will be extended until March 14, 2021, if the bill is signed by President Donald Trump.

“Ensuring continued support for our small businesses is the most important thing we can do for our economy right now,” said Sen. Tim Scott, R-S.C. “By increasing PPP funding, streamlining loan forgiveness and setting aside specific amounts for community-oriented financial institutions, countless jobs will be saved and small business owners will have more security through the winter.”

Additional PPP provisions have also been designed to target the hospitality industry relief with loans equal to 2.5 monthly payroll costs, according to a news release from the S.C. Restaurant and Lodging Association. Restaurants may be eligible for forgivable loans up to 3.5 times monthly payroll costs.

Businesses in dire straits with more than 300 employees can now access PPP funding under new stipulations so long as the 300 employees are not based in one location — a boon for medium to large restaurant groups, according to the S.C. Restaurant and Lodging Association.

“From the day South Carolina's hospitality industry began to be impacted by the pandemic, the S.C. Restaurant and Lodging Association has worked with the American Hotel and Lodging Association and the National Restaurant Association to press Congress and the Trump administration for both long-term and short-term economic support,” John Durst, president and CEO, said in the release. “This bill will help provide our industry with much needed capital that will create more time for us to work with Congress to create the additional programs to save our beloved industry.”

Other small-business specific provisions include the deductibility of business expenses paid with PPP loans, the enhancement of the Employee Retention Tax Credit, extension of the augment Work Opportunity Tax Credit and an extension for Troubled Debt Restructuring relief, which allows banks to receive additional forbearance and debt relief through the end of 2021, according to the release.

“The action taken by Congress today will keep tens of thousands of restaurants from closing in the coming months,” Tom Bené, president and CEO of the National Restaurant Association, said in Monday’s release. “A second round of PPP, combined with unique enhancements for the restaurant sector, will provide critical access to capital. Restaurant operators and their employees are dedicated to serving their communities, and today’s bipartisan agreement will give them the opportunity to do that through the holidays.”