MONROE, La. – A new round of COVID-19 relief loans will be available after President Donald Trump signed the stimulus package Sunday night.
The new $900 billion coronavirus relief and stimulus package includes an extension of last spring’s Paycheck Protection Program.
It provides another $284 billion in forgivable, federally backed loans for struggling small businesses.
Louisiana Senator, Bill Cassidy, says one difference with the latest round of loans is that this one has a more narrow focus.
“If your business has done better like there the law firms that took PPP last time but this time they’ve done better… or hardware stores. They’ve done great. Everyone’s been remodeling. You won’t qualify,” Sen. Cassidy said.
Like the last round, if you use 60% of the money for payroll costs, the loan will be forgiven. He says it is really important that you prove your business has lost. You must be able to show that your business has had a gross receipts drop of at least 25% of on quarter this year compared to one quarter last year.
“You need to show that you lost money year after year to qualify for the second round of PPP.”
Senator Cassidy says also new is the list of additional expenses eligible for loan forgiveness including money spent on personal protection equipment for employees or the addition of a drive-through or outdoor seating at a restaurant.
If a business does not qualify for the Paycheck Protection Program loan, Senator Cassidy says there are other items in the package including low-interest Small Business Administration loans that come with six months of no payments.
