- The new $US900 billion stimulus deal includes $US325 billion for small businesses and a continuation of the Paycheck Protection Program.
- The deal allocates money for specific kinds of business owners and industries, including $US15 billion for entertainment venues and theatres.
- Business Insider reviewed the nearly 5,600-page bill and talked with experts to help you navigate how to take full advantage of its benefits for your business.
- Visit Business Insider’s homepage for more stories.
After months of negotiations, Congress struck a $US900 billion stimulus deal, including $US325 billion for small businesses and a continuation of the Paycheck Protection Program, with revisions from the last round which closed in August.
The deal allocates money for specific kinds of business owners and industries, including $US15 billion in grants for entertainment venues and theatres affected by mandated closures during the pandemic.
Business Insider reviewed the nearly 5,600-page bill and talked with experts to help you navigate how to take full advantage of its benefits for your business.
What you need to know about PPP loans
This time around, PPP is a little different. The stimulus targets the smallest firms. It’s opened up to nonprofits, put an emphasis on the service sector, and has a focus on low-income communities. Experts say the guidance around PPP loans is clearer this time around, as legislators have worked out many of the kinks of the CARES Act. But with new eligibility and forgiveness requirements added, the language is more complex, so both lenders and borrowers will need to be diligent in understanding how it applies to their businesses.
Changes in the second round
During the first round of stimulus in April, several large companies and franchises received backlash for taking PPP loans. Many small-business owners were concerned large, revenue-generating companies received aid that was meant for them. In this second stimulus bill, legislators narrowed down who qualifies in an effort to address this issue. While first-time PPP applicants may have 500 or fewer employees, those applying for a second time must have 300 or fewer.
Grants for independent entertainment venues
The stimulus bill outlines a new $US15 billion program, Grants for Shuttered Venue Operators, which gives up to $US10 million in aid for live music venues, theatres, producers, performing arts organisations, promoters, museums, and talent representatives. Unlike the PPP loans, these funds are grants that do not require repayment or forgiveness, and they are entirely new from the CARES Act of the spring.
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