As part of Congress' recently passed COVID-19 relief bill,
Congress has approved an additional $325 billion in forgivable
loans for employers through the Paycheck Protection Program (PPP).
The bill changes certain eligibility requirements for future PPP
loans and expands what expenses may be eligible for
forgiveness.
The Economic Aid to Hard-Hit Small Businesses, Nonprofits, and
Venues Act limits eligibility for new PPP loans to businesses with
300 employees or less, as well as only those businesses who have
suffered a 25% reduction in revenue in any quarter in 2020, as
compared to 2019 revenues for the same quarter. As before, most
eligible employers will be able to apply for loans up to 2.5 times
their average monthly payroll costs. However, in this round, the
maximum loan size is $2 million per business. Businesses in the
accommodation and food services industries may receive a loan of
3.5 times their payroll costs, but subject to the same $2 million
maximum loan
