The PPP loan program is open: How your small business can get loans, grants, and tax breaks from the new stimulus bill
- The Senate approved a PPP extension, which would give struggling business owners another two months to apply for relief.
- The extension comes after Congress passed a $1.9 trillion coronavirus relief bill.
- Insider talked with experts to help you take full advantage of PPP benefits for your business.
The Senate approved a bill on March 25 extending the deadline for applying for a Paycheck Protection Program loan.
The legislation gives business owners until May 31 to apply for the PPP, a forgivable loan aimed at helping business owners harmed by the pandemic. Additionally, the Small Business Administration has until June 30 to process the applications. The bill is heading to President Joe Biden to be signed into law.
The extension comes three months after Congress struck a $900 billion stimulus deal, including $325 billion for small businesses and a continuation of the PPP.
The stimulus also allocates money for specific kinds of business owners and industries, including $15 billion in grants for entertainment venues and theaters affected by mandated closures during the pandemic.
Business Insider reviewed the nearly 5,600-page bill and talked with experts to help you navigate how to take full advantage of its benefits for your business.
Watch: How business owners can make the most of PPP
What you need to know about PPP loans
This time around, PPP is a little different. The stimulus targets the smallest firms. It's opened up to nonprofits, put an emphasis on the service sector, and has a focus on low-income communities. Experts say the guidance around PPP loans is clearer this time around, as legislators have worked out many of the kinks of the CARES Act. But with new eligibility and forgiveness requirements added, the language is more complex, so both lenders and borrowers will need to be diligent in understanding how it applies to their businesses.
Read more:
PPP is open. Here's what you need to know about your business' eligibility and application.
How to know what lender to use
4 things business owners can do right now to prepare for the next round of PPP loan applications
Business owners can get a 2nd PPP loan if they meet 6 criteria
5 steps to get your PPP loan forgiven
Changes in the second round
During the first round of stimulus in April, several large companies and franchises received backlash for taking PPP loans. Many small-business owners were concerned large, revenue-generating companies received aid that was meant for them. In this second stimulus bill, legislators narrowed down who qualifies in an effort to address this issue. While first-time PPP applicants may have 500 or fewer employees, those applying for a second time must have 300 or fewer.
Read more:
5 changes to PPP loans that will affect your business' eligibility
How restaurant owners can cash in on PPP loans and get up to 3.5 times their monthly payroll
PPP UPDATE: Women, veterans, and BIPOC business owners will get first dibs on stimulus funds
PPP borrowers can now claim 6 important tax credits - a major change from the original rule
Other funding options
The stimulus bill outlines a new $15 billion program, Grants for Shuttered Venue Operators, which gives up to $10 million in aid for live music venues, theaters, producers, performing arts organizations, promoters, museums, and talent representatives. Unlike the PPP loans, these funds are grants that do not require repayment or forgiveness, and they are entirely new from the CARES Act of the spring.
Read more:
Businesses can now skip up to $36,000 in payments for 6 months on SBA loans
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