Federal Legislative Update
On July 27, 2020, the Continuing Small Business Recovery and Paycheck Protection Program Act was introduced in the Senate. A copy of the bill can be found here. The bill is part of the broader coronavirus relief package introduced by Senate Republicans.
While Congressional negotiations may take a few more weeks given contentious issues, like the continuation of federal unemployment benefits, the Continuing Small Business Recovery and Paycheck Protection Program Act proposes additional assistance for the hardest-hit small businesses.
If passed, the bill would:
- Allow certain businesses that have already received PPP loans to draw additional PPP funding. Eligible businesses are those meeting certain revenue targets, having no more than 300 employees, and that have had a 50% reduction in gross revenues.
- Allow PPP funds to be used for business improvements, such as supplier costs, and covered worker protection expenditures.
- Authorize $100 billion in loans to certain recovery sector businesses that have 500 or less employees and have a 50% reduction in gross revenues.
- Provide additional resources to registered SBA investment companies
A one-page overview of this bill can be found here.
coronavirus has created many issues for employers to navigate. You can find MBA’s updates on these issues by going here. MBA will continue to update you as the coronavirus pandemic continues to impact employers.