• Thu, Jul 30, 2020
  • Paycheck Protection Program Round 2 Coming?
  • Courtesy of Jeff Trapp and The Tax Planning Pros:

    There is a lot of chatter coming out of Washington. It looks like lawmakers are preparing to pass a new bill. We don't know if that will be The Heals Act or The Heroes Act, but we believe that it will be something in between a $1 Trillion and $3 Trillion stimulus package.

    Mitch McConnell is pleading with Congress not to wait on this matter. He urged lawmakers to come to an agreement quickly saying, "The pandemic is not finished. The economic pain is not finished. So Congress cannot be finished either." - CNBC

    The propsosed bill is called: Continuing Small Business Recovery and PPP Act.

    Technically it's part of the broader relief package The Heals Act being backed by the Republican Senate.

    Here is what we've learned so far:

    • PPP Additional Expenses To Allow (operations expenditures, Property damage costs, supplier costs, worker protection expenditure) 
    • Allows you to select your covered period of 8 or 24 weeks
    • Automatic forgiveness for Under 150k loans (must keep files on record for 3 years and potentially subject to an audit). Must attest to a good faith effort. No documents to be submitted to lender needed
    • Automatic forgiveness for 150k-2M loans (must keep files on record for 3 years and potentially subject to an audit). Must attest to a good faith effort. Documents need to be submitted to lender.
    • Ability to get a second wave of PPP funds even if you were apart of the first wave (PPP Second Draw Loans)
    • PPP Second draw loans are eligible for forgiveness
    • Maximum for second draw loans will be 2M, not 10M
    • Ability to request an increase in loan amount on your original PPP loan
    • Additional Loan available for 7(a), not PPP, with interest rate at 1%. Ability to defer principal and interest for the first 2 years and ability to grant another 2 year deferral after that.
    • PPP allows for Bankruptcy small business debtors
    • Enhance federal unemployment insurance at 70% of a worker's previous wage, rather than the $600 per week which states stopped paying out this week.
    • The GOP would set the benefit at a sum of $200 per week on top of what recipients would normally receive from states through September and then the 70% replacement would take affect up to a maximum of $500 per week.
    • The bill also puts up another round of $1,200 to $2,400 in stimulus payments along with an offer for of an additional $500 per dependent of any age.

    Best Regards,
    Eric J. Gall, MBA, CM&AP, CBI, ABI
    Edison Business Advisors
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