More Relief Available for Small Businesses
A new federal law increases the lending authority of the Paycheck Protection Program (PPP) by $7.25 billion. The PPP was designed to help small businesses keep workers on the payroll during the COVID-19 pandemic. The provision increasing its lending authority was included in the $1.9 trillion American Rescue Plan Act, which President Joe Biden signed into law on March 11, 2021.
The PPP’s eligibility rules have been expanded to include certain nonprofit organizations and digital news services. PPP loans are forgivable if at least 60% of the money is used for payroll expenses, including health coverage, and the remainder goes to mortgage interest, rent, utilities, personal protective equipment or certain other business expenses. The program is scheduled to expire on March 31, 2021