This story was updated January 9, 2021
Congress has passed, and the President has signed, the stimulus bill which includes a new round of Paycheck Protection Program (PPP) loans, EIDL grants and other assistance to help small business owners and independent contractors.
There is $284 billion in forgivable PPP loan funds available, both for some businesses that already got PPP loans as well as others that missed out in round one. 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 starting January 11, 2021.
Grants (advances) under the Economic Injury Disaster loan program (EIDL grants) will open again with $40 billion included for new emergency EIDL Grants for, including targeted grants for businesses in low-income communities.
Small businesses will continue to benefit from SBA debt relief payments with $3.5 billion set aside for that assistance. Another $2 billion is included for enhancements to SBA lending.
There will also be $15 billion in dedicated funding for live venues, independent movie theaters, and cultural institutions.
Funding for Community Development Institutions and Minority Development Institutions ($12 billion) will help those organizations help minority and low-income small business owners through a new Neighborhood Capital Investment program.
Pandemic Unemployment for Self-Employed and Independent Contractors
Many independent contractors and self employed individuals received help through Pandemic Unemployment programs. This legislation continues certain benefits and enhances others.
The bill adds an additional $300 per week for all workers receiving unemployment benefits, through March 14, 2021. (That weekly benefit is half the additional $600 in the CARES Act.)
This bill also extends the Pandemic Unemployment Assistance (PUA) program, with expanded coverage to the self-employed, gig workers, and others in nontraditional employment, and the Pandemic Emergency Unemployment Compensation (PEUC) program, which provides additional weeks of federally-funded unemployment benefits to individuals who exhaust their regular state benefits.
Additionally, the bill increases the maximum number of weeks an individual may claim benefits through regular state unemployment plus the PEUC program, or through the PUA program, to 50 weeks. The bill also provides an extra benefit of $100 per week for certain workers who have both wage and self-employment income but whose base UI benefit calculation doesn’t take their self-employment into account.
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 EIDL grants.
- Nav will match borrowers to lending partners making PPP loans. Sign up for a free Nav account to be alerted as soon as these loans are available.
- Follow and discuss updates in the Facebook group: Business Loan Insight Financing Hub – PPP, EIDL and More on Facebook.)
This article was originally written on December 20, 2020 and updated on January 9, 2021.