• 15 billion in funds are being made available for venue operators, movie theaters, live performing arts operators, museums, and theater producers. • Organization must have been fully operational as of February 29th and demonstrate at least a 25% decrease in revenue when compared to same quarter last year. • Grants will be up to 45% of gross revenues in 2019 with a cap of 10 million. • A second grant may be available as well. • Grants must be used for payrolls costs, rent, worker protection, and ordinary expenses.
• Organizations must have used all proceeds of previous round of PPP funding. • New loans are calculated based on 2.5x average monthly payroll for 2019. • Severely impacted businesses may qualify for 3.5x average monthly payroll. • New borrowers must be able to show a 25% decrease in receipts over same quarter (sba to issue definition of receipts). • Forgiveness for this round will no longer be reduced by EIDL loans. • Fte/salary reductions still apply however safe harbors will also continue to be available.
Changes to Existing PPP Program (changes do not apply to organizations that have already submitted forgiveness applications). • Additional non-payroll costs that may be forgiven include software costs, payroll fees/preparation expenses, property damage from vandalism, worker protection costs. All expenses remain subject to the previous 40% rule. • Organizations may now choose any covered period beginning with the date funds were received ending with a date chosen by the borrower. • Borrowers with loans under $150,000 may now file a one page form and appear not to be subject to any fte or salary reductions.
The new Stimulus Package has been signed. We'll highlight business-related items here. The new law reverses a prior IRS ruling (2020-32) that forgiven expenses under the PPP Program are not deductible. The new law makes it clear that expenses that qualify for forgiveness are now fully deductible.