UPDATE 12.28.20: Congress passed legislation Dec. 21, 2020 that was signed by the president Dec. 27 that provides an additional $284 billion for a new round of forgivable Payroll Protection Program loans, now expanded to include nonprofits, local newspapers, and TV and radio broadcasters.
It also sets aside $12 billion for minority-owned and very small businesses that had trouble accessing the first round of PPP funding.
The new round of PPP loans will be limited to companies with no more than 300 employees and loans will be capped at $2 million. Publicly traded businesses are not eligible.
Small businesses that previously received a PPP loan will be eligible for a second loan if their revenues fell by 25% this year.
PPP borrowers will also be allowed to take tax deductions for covered business expenses, including rent and utilities.
The Coronavirus Aid, Relief, and Economic Security Act allocated $349 billion to help small businesses keep workers employed amid the pandemic and economic downturn.
Known as the Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to small businesses who maintain their payroll during this emergency.
Small businesses and sole proprietorships can apply beginning April 3, 2020. Independent contractors and self-employed individuals can apply beginning April 10, 2020.
The U.S. Chamber of Commerce issued this guide to help small businesses and self-employed individuals prepare to file for a loan.023595_comm_corona_virus_smallbiz_loan_final