Senate Republican Leader Mitch McConnell placed a bill before the Senate Thursday 9/10. S 178 is a roughly $500B package that included many “small business-related provisions including the next round the PPP and revisions to the existing. The Senate voted 52-47 to pass the bill. However, it failed to get the 60 votes needed to overcome Thursday’s procedural hurdle as congressional Democratic leadership and the White House remain at a standoff over a fifth coronavirus package.
The key PPP-related provisions in the bill include the following:
- Allowable uses of a PPP loan is expanded to include covered operational expenses, property damage costs, supplier costs, and worker protection expenditures.
- Lender safe harbor and hold harmless provisions; no enforcement actions where demonstration of good faith reliance on certifications
- Simplified forgiveness application for loans of $150K and under – one page form, paper or online
- Relaxed forgiveness application process and document submission standards for loans between $150K and $2M
- Second draw PPP loans for eligible businesses with 35% or more reduction in gross receipts
- PPP loan amount limitations adjusted
- Amount limitations for businesses with multiple locations
- Gross receipt calculations for nonprofits and veterans organizations
- $25B set aside for small businesses with 10 or fewer employees
- $10B set aside for small community lenders (CDFIs, certain Farm Credit Banks, and insured depositories and credit unions under $10B) to loan to small businesses
- PPP funds can’t be used for lobbying
- 501(c)(6) nonprofits now eligible
- Limitations on eligibility of Executive and Legislative Branch members and their families for PPP loans
- Appears to be about $260B in funding $500B
By Mark Friedlich, Esq., CPA.