With the Consolidated Appropriations Act, Congress has approved billions in Coronavirus relief aid—including $284 billion for the Paycheck Protection Program. Small businesses can apply for these federally backed, forgivable loans to cover costs associated with payroll, rent, sanitation, or even damage caused by social unrest in 2020. However, there are some changes from the first wave of this program.
Loans from the second relief bill are capped at $2 million, and small businesses must have 300 or less employees. Applicants must also be able to show a 25% drop in revenue in order to be eligible. If you received a loan during the first round of relief, you are still eligible for another.
If you have questions about the Paycheck Protection Program, contact us for a free, 30-minute consultation with an employment lawyer.