COVID Resources

December 2020 COVID Relief Legislation

Title III
Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act
(Links to any updates are below each section heading)

Paycheck Protection Program (PPP) Loans
(Click here for video and powerpoint as well as a link to January 2021 application)

  • Eligibility: Adds that housing cooperatives, destination marketing organizations, certain 501(c)(6) organizations and certain individual stations, newspapers, and public broadcasting organizations are eligible for PPP loans (as defined in the Act).Provides that businesses that were not in operation on February 15, 2020, publicly traded companies, and businesses that receive a shuttered venue operator grant are ineligible for a new PPP loan.
  • Use of Proceeds: Expands the allowable uses of PPP loan proceeds to include covered operations expenditures, covered property damage costs, covered supplier costs, and covered worker protection expenditures (as defined in the Act) and extends the covered period to utilize PPP funds to March 31, 2021.Expands the definition of “payroll costs” to include group life, disability, vision, and dental insurance benefits. Permits PPP borrowers to choose between an eight-week and 24-week covered period. Prohibits the use of PPP loan proceeds for lobbying activities.
  • Loan Increases: Permits PPP borrowers that have not yet received loan forgiveness and returned all or part of a PPP loan or did not take the full amount of a PPP loan to request a modification to the loan in the amount of the difference.
  • Loan Forgiveness: Implements a simplified loan forgiveness process for PPP loans of less than $150,000.
  • Disclosures: Requires PPP borrowers to disclose if a covered individual directly or indirectly holds a 20% or more interest in the PPP borrower. “Covered individual” includes the president, vice president, head of an executive department, member of Congress, or any of their spouses. On and after the date of enactment of the Act, PPP loans can’t be made to entities for which a covered individual directly or indirectly holds a 20% or more interest in the entity.

PPP Second Draw Loans – $284.45B
(Click here for video and powerpoint as well as a link to January 2021 application)

  • Eligibility: Companies, including non-profit organizations, that received a PPP loan and used the full amount of the loan for permitted purposes are eligible for a PPP Second Draw Loan if the company has fewer than 300 employees and had gross receipts during a specified quarter 2020 that reflect at least a 25% reduction from the gross receipts of the company during the same quarter in 2019.Companies can only receive one PPP Second Draw Loan.
  • Maximum Loan Amount: The maximum loan amount is the lesser of 2.5 times the applicant’s average monthly payroll costs or $2 million. There are different methods for calculating the maximum eligible loan amount for seasonal employers and companies that were not in business for the one-year period prior to February 15, 2020.The maximum loan amount for companies with a NAICS code beginning with 72 (i.e., those in the Accommodation and Food Service Industry) is the lesser of 3.5 times the applicant’s average monthly payroll costs or $2 million.
  • Affiliation: The affiliation rules applicable to the PPP loan program will continue to apply to the PPP Second Draw Loans. Similarly, the affiliation exemptions for companies in the Accommodation and Food Service Industry, certain franchises, and businesses that receive financial assistance from a Small Business Investment Company apply to the PPP Second Draw Loans.
  • Attestation of Eligibility: For loans of $150,000 or less, the applicant may submit a certification attesting to its eligibility for the applicable revenue loss requirement. The applicant must submit supporting documentation on or before its submission of its loan forgiveness application.
  • Loan Forgiveness: PPP Second Draw Loans are eligible for full loan forgiveness based on the following eligible costs incurred or expenditures made during the covered period:(i) payroll costs; (ii) interest on a covered mortgage obligation; (iii) covered operations expenditure; (iv) covered property damage cost; (v) payment on a covered rent obligation; (vi) covered utility payment; (vii) covered supplier cost; and (viii) covered worker protection expenditure. For loan forgiveness purposes, at least 60% of the loan proceeds must be used for payroll costs.
  • Ineligible Companies: Identifies several categories of companies that are ineligible for PPP Second Draw Loans, including companies with certain ties to China or Hong Kong

Grants for Shuttered Venue Operators

  • Authorizes $15 billion for the SBA to make grants to eligible live venue operators or promoters, theatrical producers, live performing arts organization operators, museum operators, motion picture theatre operators, or talent representatives who demonstrate a 25 percent reduction in revenues.
  • The SBA may make an initial grant of up to $10 million to an eligible person or entity and a supplemental grant that is equal to 50 percent of the initial grant.
  • Such grants shall be used for specified expenses such as payroll costs, rent, utilities, and personal protective equipment.
  • Requires the administrator to conduct increased oversight of eligible persons and entities receiving these grants. The administrator must submit a report on the oversight to Congress.

Targeted EIDL Advance for Small Business Continuity, Adaptation, and Resiliency

  • Provides additional funding for EIDL Advances for eligible entities located in low-income communities.
  • Limits the EIDL Advance amount for entities in low-income communities that previously received an Emergency EIDL Grant to the difference between the previously received grant and $10,000.
  • Requires that the administrator notify eligible entities that they may be eligible for an EIDL Advance if: (1) the entity previously received an Emergency EIDL Grant; and (2) entities that applied for, but did not secure an Emergency EIDL Grant because of funding unavailability.
  • Allocates $20 billion to EIDL Advances provided under this section.
  • Extends the covered period to December 31, 2021

Emergency EIDL Grants

  • Extends the covered period for Emergency EIDL grants through December 31, 2021.
  • Provides the Administrator with additional flexibility for the SBA to approve applications and verify that applicants have submitted accurate information.
  • Extends the time for the Administrator to approve applications for Emergency EIDL grants and disburse funds from 3 to 21 days.
  • Increases the appropriation for Emergency EIDL grants from $20 billion to $40 billion.

Repeal of EIDL Advance Deduction

  • Extends the covered period to December 31, 2021.
  • Section 1110(e)(6) of the CARES Act is repealed, which eliminates the requirement that PPP borrowers deduct the amount of an EIDL advance from their PPP forgiveness amount.
  • Includes a Sense of Congress resolution that EIDL Advance borrowers should be made whole without regard to whether those borrowers are eligible for PPP forgiveness.
  • Provides for rulemaking authority to ensure that EIDL Advance borrowers are treated equally with respect to the repeal of Section 110(e)(6) of the CARES Act.  For those EIDL Advance borrowers who completed the loan forgiveness process prior to the repeal of Section 110(e)(6) of the CARES Act, the rules should provide relief for the previously required deduction from the PPP forgivenness amount.