Tonda Rush, National Newspaper Association Public Policy director, says it's not too early to queue up with lenders who will manage the next Paycheck Protection Program loans.
The COVID-19 stimulus bill considered in the late days of the 116th Congress is now a law. Before community newspapers can fully avail themselves of the stimulus provisions in the new law, more forms and regulations from the Treasury Department and Small Business Administration must be released.
Here are some of the provisions for PPP 2.0 loans to be available through March 31, 2021. To be eligible, a business must demonstrate:
• It lost at least 25% of gross receipts in any quarter of 2020, compared to the same quarter of 2019;
• It has 300 employees or fewer; AND
• It has used or plans to use all of its revenue from its first PPP loan.
The amount a business may borrow is still the equivalent of one month’s payroll and payroll expenses multiplied by 2.5. But it may spend the money on a wider range of expenses than in PPP 1.0, including payment for supplies used in production and the costs of complying with COVID health and safety rules for worker protection, such as ventilation systems, sneeze guards or personal protective equipment.
A business may choose any period between eight and 24 weeks for spending the money. And loans under $150,000 will be allowed to use a short-form (one-page) application for forgiveness.
To read more, go here.