On December 27, the President signed into law legislation for a new relief package with significant benefits for small businesses. This includes revisions to the Paycheck Protection Program (PPP) that may be beneficial to your business, as outlined below. At U.S. Bank we are working to bring these programs to small businesses as quickly as possible.

Paycheck Protection Program expansion

The legislation authorizes a new round of Paycheck Protection Program (PPP) funding. Approximately $285 billion has been set aside for additional lending, including the ability for eligible businesses to request a second round of funding through the program.

Second PPP loans will be available to businesses who have used the full amount of their first PPP loan, have fewer than 300 employees and who can demonstrate at least a 25% reduction in gross receipts in any quarter in 2020 when compared against certain past quarterly results. The legislation caps second loans at $2 million.

Pineville NC Chamber of Commerce member U.S. Bank plans to offer both first and second PPP loans under the new rules. As we receive guidance from the SBA regarding the eligibility requirements and the application process, we will provide updates via email and on usbank.com/ppp.

Additional relief for small businesses

In addition to PPP, the legislation provides $20 billion to restart and extend the SBA’s Economic Injury Disaster Loan (EIDL) Advance Grants, funds for eligible theaters, museums and zoos, and additional debt relief for eligible small business loans guaranteed by the SBA under 7(a), 504 and Microloan programs. Improvements to those SBA loan programs, such as waived fees, are also part of the legislation.

U.S. Bank is working around the clock to update its SBA lending programs to reflect the additional relief.

Where can I go for more information?

We will update usbank.com/ppp with more information, including application instructions and eligibility guidelines, as it becomes available. At the time we begin accepting new applications, businesses will have until March 31, 2021 to apply or until funds run out, whichever comes first. In the meantime, please contact an accountant or legal counsel for information about your specific situation. USBank recognizes that this continues to be a difficult time for small businesses. Please let us know if there is anything more we can do to help.