Hope y’all are doing well. Please find attached the summaries of COVID Relief provisions relating to assistance to small businesses and nonprofits. Will share the text when it is available.
I’d like to highlight that the COVID Relief bill provides $325 billion additional assistance to the hardest-hit small businesses, nonprofits, and venues. Specifically, this includes:
- Funding for a second round of PPP forgivable loans small businesses and nonprofits experiencing significant revenue losses.
- Improvements to the PPP program:
o Expands PPP allowable and forgivable expenses to include supplier costs on existing contracts and purchase orders, including the cost for perishable goods at any time, costs relating to worker protective equipment and adaptive costs, and technology operations expenditures
o Provides needed assurances to PPP lenders that no enforcement action could be taken against a lender who originated the loan in good faith, complied with all regulations, and relied in good faith on a borrower’s certification and documentation.
o Simplifies the forgiveness application process for smaller loans up to $150,000 while increasing SBA’s ability to audit and review forgiven loans.
o Expands PPP eligibility for certain 501(c)(6) nonprofits and Destination Marketing Organizations (DMOs) with 300 or fewer employees that do not receive more than 15 percent of their revenue from lobbying
o Expands PPP eligibility to local newspapers and T.V., and radio stations previously made ineligible by their affiliation with other stations
o Eliminates the requirement that EIDL advances be subtracted from PPP forgiveness.
- Funding for grants to shuttered venues
o Establishes a $15 billion grant program to support shuttered live venues, theaters, museums, and zoos that have experienced significant revenue losses
- Providing emergency enhancements to other SBA lending programs.
In addition, the bill includes a provision clarifies that deductions are allowed for otherwise deductible expenses paid with the proceeds of a PPP loan that is forgiven, and that the tax basis and other attributes of the borrower’s assets will not be reduced as a result of the loan forgiveness
Finally, the bill extends the relief from Troubled Debt Restructuring (TDR) for one more year.