In The News

Small Business Holiday Wish Granted: More PPP Funding

After months of negotiations, Congress has finally passed a new, $900 billion COVID-19 relief package. The package includes funding for vaccine transportation and distribution, a new round of stimulus checks for some Americans, and another wave of the Paycheck Protection Program (PPP) funding.

As small businesses continue to navigate government imposed restrictions and regulations, an additional $284 billion in PPP funds, originally crafted under the CARES Act in March, would be a much needed lifeline for Main Street.

The PPP funds would be available for businesses that did not receive support in the first round of funding and will be primarily focused on supporting minority- and women-owned businesses. Small businesses that did receive a PPP loan in the first round but have experienced revenue losses of 25 percent or higher in 2020 compared to 2019, would also be eligible to receive more funds. PPP loans will most likely be based on 2.5 months of the businesses payroll costs, but not exceeding $2 million for one loan.

Additionally, to support Main Street, the Small Business Administration (SBA) would offer $20 billion in grants through the Economic Injury Disaster Loan program (EIDL). This loan is provided to small businesses and nonprofits who are currently experiencing a temporary loss of revenue.

While Congress has passed the legislation, the President has yet to sign the bill. Once he signs this into law, small businesses and Americans will receive much needed financial relief.

The holidays are often a busy time for small businesses. But this year, as American’s shop online to avoid shopping malls and stores, small businesses are hurting. As you finish your holiday shopping, support small businesses. They can use all the help they can get.