December 28, 2020 | By: LendVer Staff –
After days of posturing, objections, and demands for an increase in direct stimulus payments, the President put pen to paper and signed into law the $2.3 trillion coronavirus relief and government funding bill last night. In addition to funding the government through September of 2021, the new law will provide $900 billion of coronavirus and economic relief measures.
In an unprecedented turn of events, Democratic leadership has sided with the President, and the House of Representatives will vote today to increase direct stimulus payments from $600 to $2,000. The measure is likely to pass in the House, but is unlikely to be pushed through the Republican lead Senate that favors the already ratified $600 payment amount.
When will stimulus funds be available…
The new stimulus bill, although now law, isn’t expected to bring relief to Americans until the start of 2021. The President’s delay in signing the stimulus and government funding bill caused unemployment benefits to expire over the weekend, and possibly reduced the length of unemployment insurance benefits under the new stimulus package from 11 weeks to 10 weeks. The package includes the major items outlined here, and some of the first funding likely to be available will be for unemployment insurance benefits, Paycheck Protection Program loans, and direct stimulus checks.
Here comes PPP2…
$285 billion of funds will be made available to small businesses via the Paycheck Protection Program, and additional measures were included to ease the burden of borrowers:
- Small business owners with less than 300 employees, may receive a 2nd PPP loan up to 2.5 times their average monthly payroll (3.5 times for restaurants and other hospitality businesses) if their revenue has dropped by 25% or more in the 1st, 2nd, or 3rd quarter of 2020 when compared to the same time period in 2019. Business owners that are yet to receive PPP financing, can still apply for a 1st PPP loan.
- There will be a simplified forgiveness application (no more than 1-page) process for borrowers with a PPP loan of less than $150,000.
- Forgiven PPP loan expenses will be tax deductible, reversing unpopular IRS guidance, and eliminating a significant tax liability for many.
Although lenders are not yet able to start releasing PPP loan funds again, the SBA preferred lender The Loan Source is one of the few SBA lenders that has already opened up its PPP loan application. Small business owners interested in obtaining a 1st or 2nd PPP loan can apply now with The Loan Source. You do not need to have an existing loan or relationship with The Loan Source to apply for a PPP loan. The Loan Source is accepting PPP loan applications from all eligible business owners.
Read our review of The Loan Source and learn why we’ve selected it as our 2020 Best PPP Lender.
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