December 2020 Stimulus Package Details
Courtesy of the Offices of Congressman Gerald E. Connolly, below are highlights of the economic aid extended to small businesses in the most recent stimulus package approved by the U.S Congress:
- Expand PPP eligibility to small nonprofits, including 501(c)(6), destination marketing organizations (DMOs), and housing cooperatives with 300 or fewer employees, provided their lobbying activities do not exceed 15 percent of their lobbying activities and the cost of their lobbying activities does not exceed $1,000,000.
- Extends covered period for Emergency EIDL grants through December 31, 2021.
- Enhances the microloan program to increase access to micro capital and technical assistance under the program for businesses impacted by the COVID-19 pandemic.
- Repeals section 1110(e)(6) of the CARES Act, which requires PPP borrowers to deduct the amount of their EIDL advance from their PPP forgiveness amount.
- Creates a second loan from the Paycheck Protection Program, called a “PPP second draw” loan for smaller and harder-hit businesses, with a maximum amount of $2 million.
- $25 million for the Minority Business Development Centers program under the Minority Business Development Agency (MBDA).
- $35 billion for first-time borrowers, $15 billion of which for smaller, first-time borrowers with 10 or fewer employees, or loans less than $250,000 in low-income areas.
- $25 billion for second draw PPP loans for smaller borrowers with 10 or fewer employees, or loans less than $250,000 in low-income areas
A more in-depth summary of the stimulus benefits impacting our small business community, prepared by the U.S. House of Representatives Committee on Small Business, can be found here.