Senate Approves Additional Funding

Senate Approves Additional Funding

On Tuesday April 21, 2020, the Senate approved an additional $484 billion in funding for COVID-19 relief. The bill is currently in the house and is expected to be finalized on Thursday. $370 billion of the additional funds will be allocated to the Small Business Administration to support small businesses which will be used as follows:

  • $310 billion to the Paychex Protection Program Loans (PPPL),
  • $50 billion to the Economic Injury Disaster Loan Program (EDIL), and 
  • $10 billion will be allocated to SBA $10,000 grant program.

What does this mean for your business? If you have applied and haven’t received funding, you may see that coming shortly. If you haven’t applied, you still have a chance!

See additional details on the funding here.


Frequently Asked Questions: Awaiting SBA Guidance

For payroll paid during the covered period is it based on the date paid or is it based on when the payroll was incurred? Is there a limit on how much an employee can make compared to the most recent quarter if it is not in excess of $100,000 on an annual basis? Is rent, utilities, interest, etc. in arrears eligible for forgiveness if paid during the covered period? What about amounts paid in advance? For employees laid off prior to 4/27 and hired back by 6/30 is there a time period they must remain employed in order to avoid a reduction in loan forgiveness? How do you define FTE? Is it 30, 35 or 40 hours? We know non-mortgage interest is a covered cost, but is it also eligible for forgiveness? How do you measure the 25% reduction amount for payroll? For example, from 1/1/20 to 3/31/20, do you look at number of hours, rate per hour, or just total compensation during that period? If you bonused people during Q1 of 2020 that is not a part of their normal compensation, is that included when looking at the 25% reduction for payroll? What is “transportation” with regards to being a utility? Does this include mileage, gas for vehicles, etc.? Does “rent” include all leases (building, vehicle, equipment, copiers)? If not, what does it include? If a business hires new employees after 2/15/20, can they be included in the FTE count for the 8-week period? Are there any restrictions on compensation (increases) for related parties (mother, father, brother, sister, child, etc.)?


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