Once the new congressional COVID-19 relief bill is sorted out, small businesses can expect some help with the Paycheck Protection Program, or PPP loan.
It extends more help to small businesses than the first Cares Act PPP loan back in March.
Businesses with fewer than 300 employees and that have lost 25% of their revenue because of the pandemic are eligible for the loan.
The loan adds some flexibility this time to cover more than just rent and paychecks. It can also cover things like property damage and supplier costs.
In the proposed stimulus bill, $12 billion will go to helping minority-owned businesses.
Attorney Peter Glennon, president of Glennon Law Firm, P.C., says the federal government is hoping states will meet them halfway.
"Less than 24 states frankly are still providing their own extended unemployment benefit. And what that means now the federal government with their stimulus package came in and said states if you will contribute 50% of the cost, the federal government will contribute 50% of the cost and be able to extend the benifts by another 13 weeks," said Glennon.
"If you were a gig worker or independent contractor and you were not eligible for unemployment previously in New York State, you now are. And that's been extended because a lot of these programs were set to expire at the end of December. Now you have through March 14 of 2021 to receive the addition. Now it's $300 instead of $600, but you receive that and you receive extended unemployment benefits," he added.
Businesses cannot borrow more than $2 million but can seek forgiveness for a loan up to $150,000.