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Paycheck Protection Program (PPP)

What you need to know about the new PPP

In December, Congress passed a new COVID-19 relief package that includes an increase to Paycheck Protection Program (PPP) funding, providing a short bridge for independent restaurants and bars. Congress reauthorized the program with $325 billion in new funding and amended several key elements to the program, including changes that our coalition fought for. 

Webinar and Q&A

Webinar: The IRC partnered with the James Beard Foundation and Arnold & Porter to answer questions about how the PPP updates affect operators. Scroll down to watch the video or check it out on YouTube here. Closed captions are available by pressing "CC."

Q&A: Please find our updated PPP question & answer here

PPP changes at a glance

  • The restaurant and hospitality industries may receive loans of up to 3.5X average monthly payroll costs, compared to 2.5X for other industries.
  • The new PPP also has an expanded list of eligible expenses, including: 
    • Mortgage, rent, and utility payments
    • Operations expenditures
    • Property damage costs
    • Supplier costs
    • Worker protection expenditures
  • There are a few set-asides intended to help smaller, independent businesses including a $15B PPP set-aside for lending through CDFIs and other community-based lenders that will help expand access, and for very small businesses of 10 or fewer employees.
  • Operators can use the funds for any period between 8 and 24 weeks.
  • For loans less than $150,000, a business may submit a certification attesting that the entity meets the revenue loss requirements on or before the date the entity submits their loan forgiveness application.
  • The bill permits certain EIDL borrowers to also apply for a PPP loan.
  • New rules exclude publicly traded companies from PPP eligibility.
  • The proposal ensures applicants cannot be held liable if they didn’t understand they had recourse against them at the time they took the PPP and EIDL loans after a refinancing.