Good news for small businesses—another stimulus package has been approved! The new package provides $900 billion in coronavirus relief and stimulus. Its provisions include an extension of last spring’s Paycheck Protection Program (PPP), allowing another $284 billion or so in forgivable, federally backed loans for ailing small businesses. And it provides some much needed relief for
individuals.
The initial program, overseen by the U.S. Department of Treasury and Small Business Administration, provided $525 billion to more than 5 million recipients. It was first instituted under the CARES Act back in March 2020. Its purpose was to put funds in the hands of businesses who were increasingly being forced to close their doors due to coronavirus in the hopes that the money would prevent layoffs by funding
these businesses’ payrolls. The loans could be fully forgiven if the businesses spent at least 60% of the proceeds on payroll costs.
The first iteration of the PPP was a success with tens of thousands of businesses receiving hundreds of billions of dollars that went toward keeping people in their jobs. It was such a success that business owners and elected officials have been lobbying for a second round of the program to be included in any future COVID-19 related stimulus package. This week, they got their wish!
Things to Know About the New PPP Act
