HEALS Act: A Second PPP Loan May Be Possible
Negotiations have been underway since the Senate reconvened after their two-week summer recess to determine the fate of the second stimulus package for U.S. citizens and businesses impacted by the COVID-19 pandemic. First, the Senate reviewed the House-approved HEROES Act set to provide $3 trillion in aid, which was triple the amount that the Senate wants to spend in the next round. So, the Senate has introduced the Health, Economic Assistance, Liability Protection and Schools Act (HEALS Act). Here’s what we know about this new bill so far and how it will affect business owners if it is passed.
Second PPP Loan
Many businesses that took their first PPP loan are starting to see those funds run dry, but still aren’t in the financial position they need to be to survive this storm. So, many are hoping for the chance to acquire a second PPP loan. The HEALS Act currently has a provision in the bill that will allow businesses that took a PPP loan the ability to receive a second loan if they meet certain criteria. Currently, businesses that have less than 300 employees and have at least a 50% reduction in gross revenue would qualify.
Use of PPP Funds
Both the HEROES Act and the HEALS Act have provisions in them to eliminate the 75% payroll requirement and the HEALS Act extends the approved use of funds for loan forgiveness as well. New areas included are:
- Covered supplier costs
- Worker protection expenditures which include adaptations to your business to comply with requirements or guidelines set by the Department of Health and Human Services, Centers for Diseases Control, or the Occupational Safety and Health Administration. This includes
- Adding a drive-thru window
- Adding air ventilation or filtration system
- Adding physical barriers such as sneeze guards
- Covered property damage costs which include costs related to vandalism or looting due to public disturbances that weren’t covered by insurance or other compensations.
Based on where discussions are currently, it looks like the Paycheck Protection Program will get an overhaul to give the additional assistance businesses need to persevere. If your business has already received a PPP loan and still in need of assistance, there is a chance you’ll get your wish. We’ll continue to keep you updated as we learn more about the progress of the HEALS Act and how it will affect your business.
*ARF Financial provides articles, webinars and other content on its website and through email and other means of distribution from time to time provided both by ARF staff, and by other outside authors, for information purposes only. ARF does not warrant the accuracy or completeness of the content and has no duty to correct or update information contained on its website or as may be otherwise distributed.The views and opinions of outside authors contained in the content provided on the ARF website do not constitute the views and opinion of ARF. Such content does not constitute legal, tax, accounting or financial advice from such authors or from ARF. Each individual or business should seek the advice or consultation of its own professional advisors with respect to the subject matter and content provided and how such information applies to their particular circumstances.