Earlier this week, Congress agreed on a new $900 billion Covid relief package, which includes an additional $284 billion for the Paycheck Protection Program (PPP) for small businesses.
In anticipation of your questions around this, we want to provide as much information as we have at this time. While the bill has not been finalized, this new package provides additional funding for those businesses that did not receive PPP money in the first round, especially minority- and women-owned businesses. In addition, it allows businesses a second chance at PPP money if they can show a 25% reduction in revenue in 2020 compared to 2019.
The date that the bill will be signed by the President is still up in the air. Even if all occurred today, we are likely weeks away from it being implemented. And, as has occurred all along, we can expect new and evolving regulations, likely after January 1. Know that our team at Fourth Capital is following closely and will be ready to take action as soon as we can.
Until then, we recommend the following actions:
- Submit your forgiveness application from the initial PPP rounds if you have not already done so. Not sure where to start? Learn more here.
- If you’re interested in applying for a round 3 PPP loan, be ready when the application opens. Just like last time, you will likely need documentation for payroll, rent/lease payments, and utility payments.
Again, we will have much more information for you after January 1 when the law is signed. We will be sure to provide updates along the way as we receive more details on who can apply and when.
Want to speak to a Fourth Capital banker? We have assembled a special PPP team to lead this effort. Please reach out to us at firstname.lastname@example.org and our team will be happy to provide guidance.