Help is on its way! We’ve highlighted what the new coronavirus relief bill might mean for your small business.
Please note: Updates to these programs are likely as details are finalized. Once passed, agencies may require some time to launch and implement these programs. As always, Maine SBDC will keep you posted as details unfold.
Pandemic Relief Loans & Grants
The Paycheck Protection Program (PPP) will be refunded under some revised rules. Businesses that have already received a PPP loan will be eligible for a second round under some new terms and conditions. There will be new forgiveness application, expanded eligibility, and expanded use of proceeds. More details on Round 2 of PPP can be found here.
The Economic Injury Disaster Loan (EIDL) also received additional funding, including potentially another round of EIDL advances. The loan portion of this program was extended through 12/31/2021. Details on this low-interest, 30-year term loan can be found here.
The Shuttered Venue Grant will provide up to $10 million based on historic revenue figures. It will be open to live venues, theaters, museums, and zoos. It can be used for payroll, rent, utilities, regular debt payment, PPE, and payments to some contractors. Important: CANNOT access both this grant alongside PPP.
The new round of funding extends programs under the Pandemic Unemployment Assistance (PUA) that were passed as part of the CARES Act. This means that the self-employed can continue to receive compensation for an additional 11 weeks. In addition, weekly benefits will increase by $300 per week.
Tax Clarifications and Relief
While details are still being nailed down, the relief bill will include clarification on expenses. If approved, expenses paid with the CARES Act Funds (i.e. PPP) are tax-deductible. The PPP loan forgiveness isn’t considered taxable income.
This new relief package will also extend and enhance the employee retention tax credit, a refundable tax credit meant to encourage businesses to retain their employees.
Direct payments will be made for up to $600 per eligible adult and child. While this is not tied directly to businesses, it’s an important element that helps support small business owners.