Small business loans, grants and taxes
- The Senate approved an extension of the P3, which would give struggling business owners two more months to seek relief.
- The extension comes after Congress passed a $ 1.9 trillion coronavirus relief bill.
- Insider spoke with experts to help you realize the full benefits of PPP for your business.
- Visit the Insider homepage for more stories.
The Senate approved a bill on March 25 extending the paycheck protection program loan application deadline.
The legislation gives business owners until May 31 to apply for the PPP, a forgivable loan to help business owners affected by the pandemic. In addition, the Small Business Administration has until June 30 to process requests. The bill is heading to President Joe Biden for enactment.
The extension comes three months after Congress hit a $ 900 billion stimulus deal, including $ 325 billion for small businesses and the continuation of the PPP.
The stimulus also allocates money to specific types of business and industry owners, including $ 15 billion in grants for entertainment venues and theaters affected by mandatory closures during the pandemic.
Business Insider reviewed the nearly 5,600-page bill and spoke with experts to help you learn how to get the most of its benefits for your business.
What you need to know about PPP loans
This time around, PPP is a little different. The stimulus targets smaller businesses. It is open to non-profit organizations, emphasizes the service sector, and focuses on low-income communities. Experts say the guidelines for PPP loans are clearer this time around, as lawmakers have solved many problems with the CARES Act. But with the addition of new eligibility and remittance terms, the language is more complex, so lenders and borrowers will need to be diligent in understanding how this applies to their businesses.
Second round changes
During the first wave of relaunch in April, several large companies and franchises received backlash for taking out PPP loans. Many small business owners were concerned that large income-generating businesses would receive help intended for them. In this second stimulus bill, lawmakers restricted who qualifies in order to fix this problem. While first-time PPP applicants may have 500 or fewer employees, second-time applicants must have 300 or fewer.
Other financing options
The stimulus bill outlines a new $ 15 billion program, Grants for Shuttered Venue Operators, which provides up to $ 10 million in aid to concert halls, theaters, producers, performing arts organizations. the stage, to promoters, museums and talent representatives. Unlike PPP loans, these funds are grants that do not require repayment or surrender, and they are entirely new since the CARES law of the spring.