NEW ROUND OF SBA LOANS?

There are two bipartisan COVID-19 relief bills, both in the Senate that have additional relief for hard hit businesses. Some members of Congress are optimistic that there will be some sort of relief bill passed before Christmas.

The Bipartisan COVID-19 Emergency Relief Act of 2020 provides $300 million to the SBA for businesses with less than 300 employees and have sustained a 30% revenue loss in any quarter in 2020.  It also includes a forgiveness provision in addition to the qualified expenses in the last PPP loan to include supplier costs, investments in facility modifications and PPE.  The forgiveness includes language that the expenses are specifically tax deductible.  Loan forgiveness would be simplified for loans of $150,000 or less.  The bill also extends unemployment assistance.

The Bipartisan State and Local Support and Small Business Protection Act of 2020 provides up to$160 billion for state, local and tribal assistance.  How the states spend the money is up to them.  It would extend the deadline for spending under the CARES act to December 31, 2021.  It would provide liability protection for employers under federal employment law in COVID-19 cases (which is one of the issues holding up the support, along with perhaps another stimulus payment).

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