More funds for Paycheck Protection Program and unemployment benefits included in new federal stimulus bill enacted Dec. 27, 2020. 

This extension of last spring’s Paycheck Protection Program (PPP) will provide $284 billion in forgivable loans for small businesses, especially those hard-hit by closures, and includes nonprofits, restaurants and performance venues. The new Act, the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act, also makes it easier to apply for forgiveness for previous PPP loans.  

The new loan and grant programs should be operating in the next couple of weeks, and we will provide details when available.  For help to apply for PPP loans, business owners should immediately ask for help from one of the following: 

• The bank they usually do business with; 

• A lender such as the Opportunity Fund; 

• A non-profit business assistance provider such as Silicon Valley Small Business Development Center;   

• Or the local Small Business Administration office. 

 Relief for businesses 

• $284.5 billion in funds to reopen and strengthen the Paycheck Protection Program for first-time and second-time borrowers. 

• Additional types of organization are eligible such as nonprofit organizations and news outlets. 

• New loans are capped at $2 million, compared to $10 million before. Applicants must have no more than 300 employees, instead of up to 500, and must demonstrate at least a 25 percent drop in revenues from the fourth quarter of 2019 to the same period this year. 

• Deadline for all new loans is March 31, 2021. Applicants have between eight and 24 weeks to use the funds, with at least 60 percent going toward payroll and the rest toward eligible expenses like rent and utilities. 

• The bill expands the type of covered expenses to include things like cloud computing or remote-work software; and equipment for the equipment required for government-mandated operating safely, like sneeze guards or air filtration systems.  

• The package provides $15 billion in grants for the entertainment industry, including independent movie theaters, entertainment venues, music clubs and cultural institutions.  

• The deal includes $20 billion for targeted grants through the Small Business Administration’s Economic Injury Disaster Loans program.  

 Jobless benefits 

• Congress will extend unemployment benefits of up to $300 per week. The extension runs at least through March 14. 

• The bill also extends Pandemic Unemployment Assistance — which targets part-time and gig workers who did not qualify for state unemployment insurance benefits — for 11 weeks. But the new legislation also requires applicants to provide documentation proving employment or self-employment within 21 days of applying for the benefits. Those extending their benefits before Jan. 31 have 90 days to submit the documentation. 

So that our small businesses have the best chance of successfully applying for the loans and grants included in this new COVID relief legislation, the City of San Jose strongly recommends that business owners get help in applying for loans and grants, starting with a bank they already do business with. The following can offer free support: 

• A lender such as the Opportunity Fund; 

• A non-profit business assistance provider such as Silicon Valley Small Business Development Center  

• Or the local Small Business Administration office   

If you have questions, call 408 535-8181 or email covid19sjbusiness@sanjoseca.gov

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