Before leaving Washington, D.C. for the holidays, Congress passed a bipartisan $900 billion COVID-19 relief package on Dec. 21. The Consolidated Appropriations Act of 2021 includes $284 billion to re-open the Paycheck Protection Program. Both new (with 500 or fewer employees) and now second-time borrowers (with 300 or fewer employees) may apply for a maximum of $2 million if they meet the eligibility criteria.
One new highlight, among others, is that businesses can use the money to buy personal protective equipment and modify facilities to comply with COVID-19 federal health and safety guidelines.
For full loan forgiveness, borrowers will have to spend no less than 60% of the PPP funds on payroll.
The bill also specifies tax deductibility for PPP expenses and calls for a simplified forgiveness application process for loans of $150,000 or less.
Click here for a detailed summary from the website of the Journal of Accountancy, which may be of assistance.
Click here for AAFP's response to the bill.