News

Paycheck Protection Program Reopens January 11

On January 8, 2021, the U.S. Small Business Administration (SBA), in consultation with the Department of Treasury, announced the Paycheck Protection Program (PPP) will reopen the week of January 11 for new borrowers and some existing PPP borrowers. The initial wave of loans issued on Monday, January 11, and Wednesday, January 13 will only be available to community financial institutions, but the PPP will open up to all eligible lenders shortly thereafter.

SBA has provided information for small business owners interested in a PPP loan, which can be found here. Additional information from SBA and the Department of the Treasury can be found at the below links:

• Interim Final Rule on Paycheck Protection Program as Amended by Economic Aid Act
• Interim Final Rule on Second Draw PPP Loans
• PPP Guidance from SBA Administrator Carranza on Accessing Capital for Minority, Underserved, Veteran, and Women-owned Business Concerns

Following are some of the key provisions related to PPP:

• Giving eligible small businesses a second draw of PPP loans. Defines eligibility as small businesses that have no more than 300 employees and demonstrate at least a 25% reduction in gross revenues between comparable quarters in 2019 and 2020.
• Additional expenses have been added to those that qualify for PPP loan forgiveness such as the “acquisition of services and equipment, including personal protective equipment, and other measures needed to protect workers and customers from COVID–19.”
• Establishes a maximum loan size of 2.5-times average monthly payroll costs, up to US$2 million.
• Full deductibility of expenses paid with a PPP loan.
• A company can take both the PPP loan and claim the Employee Retention Tax Credit provided the funds are not used for the same purpose.
• Expands eligibility of PPP to 501(c)(6) and Destination Marketing Organizations.

ISSA is working diligently to support the full spectrum of the cleaning industry, the U.S., and the world during the COVID-19 pandemic, including providing a variety of government affairs resources. To learn more about the implications of the federal COVID-19 response for the cleaning industry, register for ISSA’s virtual 2021 Clean Advocacy Summit, March 30-31, as part of National Cleaning Week. For questions regarding ISSA advocacy, including the PPP and Clean Advocacy Summit, please contact ISSA Director of Government Affairs John Nothdurft.