December 18, 2020
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PPP 2.0: For the ‘smaller of the small businesses’
We have some good news and some just-okay news. Let’s start with the good. A new round of Paycheck Protection Program (PPP) funding is being negotiated in Congress, and it’s purportedly geared toward businesses that are hurting the most:
“Let us target the program to the smaller of the small businesses. Let’s make sure it’s based upon need, so that we get to the small businesses that really need help,” said Sen. Ben Cardin (D., Md.), the ranking member of the Senate Committee on Small Business and Entrepreneurship, during a Congressional hearing last week.
A bipartisan proposal for a broader, $908 billion coronavirus-aid bill includes $300 billion for the Small Business Administration and a restart of the PPP, which closed in August. The plan would limit loans to businesses that have 300 or fewer employees and can demonstrate that they sustained a 30% revenue loss in any quarter of 2020.
The package may also include financial options for business owner communities that had trouble accessing funding in the first go-around, including low-income and minority borrowers.
Here’s the less exciting news: The deal is running right up against and past the government funding deadline. Though negotiations are still ongoing, Congress hit a snag today over a last-minute disagreement.
As of press time, Gusto intel projects a vote on the package late Sunday. We’ll schedule a special email announcement if and when the bill passes with our analysis. Stay tuned.
Deductions for all
A few weeks ago we shared a checklist of 12 things to do for your business before the year ends. One of the funner parts of that exercise is seeing how much money you’ll get to deduct based on your expenses this year.
To make the process easier, we’ve created comprehensive tax deductions lists based on common small business types. Check out our ultimate lists of tax deductions for:
Picks from our partners: IFundWomen 2021 Jumpstart Grant Program
Gusto and IFundWomen, a funding marketplace for women-owned businesses, have teamed up to support four early-stage women-owned small businesses with $2,500 grants to help them jumpstart a year of growth in 2021. In addition, all qualified applicants will receive three months of free Gusto payroll services. Applications will be accepted through December 30, 2020.
Headlines from the week
- Should companies require employees to get the COVID-19 vaccine? (New York Times)
- How to lead when you—and your team—are exhausted (Harvard Business Review)
- Restaurant chains struggle with location-specific regulations (New York Times)
- These are the best-managed companies of 2020—and what they did right (Wall Street Journal)
Top relief options for the week
- Clackamus County, Oregon is opening another $1 million in grants for small business, up to $3,000 each. Applications are encouraged from minority-owned, woman-owned, and veteran-owned businesses, childcare providers and sole proprietorships. Businesses can apply from December 19 through December 26, 2020.
- Mono County, California has opened round 3 of its County Unified Recovery Effort (C.U.R.E.) grant program, offering up to $5,000 per small business. Applications are open until December 21.
- New York Forward Loan Fund offers small businesses and nonprofits up to three months of average monthly revenue from any given three-month period before the COVID-19 outbreak or a maximum of $100,000.
- Nobelsville, Indiana has announced a second round of funding for its small business resilience grant program, which offers $10,000 grants to small businesses. Applications are open through January 8, 2021.
- See more relief options in our Small Business Relief Finder.
Want more small business news and resources? Check out past editions in our archive.
