As part of the Coronavirus Response and Relief Supplemental Appropriations Act, Congress renewed the Paycheck Protection Program and PPP loans. The so-called “PPP 2.0” will offer expanded qualifying standards to provide targeted funding to smaller businesses. These new PPP loans will have the same low rates, limited SBA requirements and loan forgiveness for qualified payroll expenses as the original PPP loans in the CARES Act.
The new Paycheck Protection Program does require businesses to prove that their business suffered at least a 25% drop in revenue during one quarter during 2020, but business owners do not need to prove that their business suffered long-term economic or physical damage to qualify. In addition, forgivable payroll costs include compensation, benefits, rent, and utilities, providing critical funding to struggling businesses.