Get Ready: More Paycheck Protection Program (P3) Loans and EIDL Grants Coming

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This story was updated on January 9, 2021

Congress passed and the President signed the Stimulus Bill which includes a new round of Paycheck Protection Program (PPP) loans, EIDL grants and other aid to help small business owners and independent contractors.

There are $ 284 billion in repayable PPP loan funds, both for some companies that have already secured PPP loans and others that missed the first round. It will include expanded PPP eligibility for 501 (c) (6) nonprofits, including destination marketing organizations and local newspapers, TV and radio broadcasters.

The SBA begins accepting PPP loan applications from January 11, 2021.

Lily: New Paycheck Protection Program (PPP) Loans: How to Qualify and Apply

Grants (advances) under the Economic Disaster Lending Program (EIDL Grants) will reopen with $ 40 billion included for new emergency EIDL grants, including targeted grants for businesses in low-income communities .

Lily: New Emergency EIDL Grants of $ 10,000: Are You Eligible?

Small businesses will continue to benefit from SBA debt relief payments with $ 3.5 billion set aside for this assistance. Another $ 2 billion is included for SBA loan enhancement.

There will also be $ 15 billion in funding dedicated to theaters, independent cinemas and cultural institutions.

Funding for Community development institutions and minority development institutions ($ 12 billion) will help these organizations help low-income, minority-owned small business owners through a new neighborhood capital investment program.

Unemployment pandemic for the self-employed and independent contractors

Many independent entrepreneurs and self-employed people have received help through Unemployment programs in the event of a pandemic. This legislation maintains some advantages and enhances others.

The bill adds an additional $ 300 per week for all workers receiving unemployment benefits, until March 14, 2021. (This weekly allowance is half of the additional $ 600 provided by the CARES Act.)

This bill also extends the Pandemic Unemployment Assistance Program (PUA), with expanded coverage to the self-employed, concert workers and others in non-traditional employment, and to the program of Emergency Unemployment Benefit (PEUC), which provides additional weeks of federally funded benefits. unemployment benefits to people who exhaust their regular state benefits.

In addition, the bill increases to 50 weeks the maximum number of weeks a person can claim regular unemployment benefits from the state plus the PEUC program, or through the PUA program. The bill also provides for an additional benefit of $ 100 per week for certain workers who have both wage income and self-employment income, but whose calculation of the basic unemployment insurance benefit does not hold. account of their independent work.

What happens next?

Now that this legislation has become law, the SBA administrator must issue regulations so that small business owners can apply for the new PPP loans and emergency grants from EIDL.

This article was originally written on December 20, 2020 and updated on January 9, 2021.

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