Covid Updates and New Resources
Congress passed a new stimulus package on December 27, 2020 that impacts both families and businesses. Here is some information you should know:
Paycheck Protection Program (PPP)
The Small Business Administration is authorized to make loans up to the $284.5 billion in newly allocated PPP funding. We are still waiting on more guidance, but what we know so far:
- PPP loans will be available to businesses with 500 or fewer employees that have not previously received a PPP loan to help with payroll, rent, utilities, healthcare costs and more.
- In addition to providing for new PPP loans for first-time borrowers, the legislation also allows certain existing PPP borrowers to receive a “second draw” PPP loan if they have used all of their first loan (or will have by the time of disbursement of the second loan), have no more than 300 employees and can demonstrate a year-over-year quarterly revenue reduction of at least 25%.
If you already have a loan, they are making it easier for small businesses to get loan forgiveness. If you got a loan of less than $150,000, you can use the current loan forgiveness process, or wait another month or two for the new, easier process.
For all things PPP, reach out to your business banker.
The IRS and Treasury Department have started delivering a second round of stimulus checks. They will be $600.00 per each eligible adult and child.
You can check the status of your payment here: https://www.irs.gov/coronavirus/get-my-payment
Part of the new stimulus bill allowed for $300 per week of extra Federal Pandemic Unemployment Compensation beginning immediately. The Department of Labor says that there will be no delays, but we know that with the increased number of people filing claims that many people are waiting to get their unemployment checks for weeks after they apply. Delayed payments will come as one large lump sum when they are eventually paid out.