Paycheck Protection Program (PPP): The relief package creates a second loan from the Paycheck Protection Program, called a “PPP second draw” and allocates $325 billion in aid to small businesses, with a total $284.5 billion of that going to reauthorize the Paycheck Protection Program. Call Key2 Accounting today for more information.
o Up to $2 million in forgivable loans will be available to businesses with 300 or fewer employees to cover essential costs including payroll and rent.
o Businesses that took a PPP loan and saw their revenues fall by 25% will be eligible for a second loan under the new terms.
o Some of the PPP funds will be set aside for the smallest businesses and community-based lenders.
o PPP borrowers will be allowed to take tax deductions for covered business expenses.
o The new rules simplify the loan forgiveness application process.
Paid Sick and Family Leave Credits: Extends the paid sick and family leave credits against employment taxes from the Families First Coronavirus Response Act (FFCRA) for three additional months to March 31, 2021.
o The bill does not extend the FFCRA’s mandate to provide paid sick leave or paid family and medical leave beyond December 31, 2020.