IRS Issues Procedures for Addressing QIP Change
Late on Tuesday, the Senate approved an increase in funding to the Paycheck Protection Program (PPP). As previously reported the initial funding for the PPP ran out last week, and more funding was required in order to keep this program afloat. The Paycheck Protection Program and Health Care Enhancement Act provides additional funding for both the PPP and the Economic Injury Disaster Loan (EIDL) programs.
This $484 Billion dollar package is primarily designed to keep the PPP and EIDL funded to allow more businesses to access the provisions. However, this bill also includes additional funding for COVID-19 testing, hospitals and other programs. Some of the highlights of this bill include:
$310 Billion to secure the Paycheck Protection Program, including $60 billion specifically allocated for loans made by small lenders and community-based institutions
$50 Billion to secure the Economic Injury Disaster Loan Program
$10 Billion to secure the Economic Injury Grant Program
$2.1 Billion for the Small Business Administration’s administrative expenses
$75 Billion for hospitals
$25 Billion for COVID-19 testing
The House is expected to vote on this bill Thursday, with the President signing shortly thereafter.
So what can businesses do in the meantime? If a business has already applied and received their PPP allocation, there is no action needed. The guidance states that a company may only apply for the loan once. However, if a company has not yet applied for their PPP loan, they should reach out to their banking relationships as soon as possible to get the process started.
If you have any questions about this update or the broader government stimulus, please feel free to contact your McGuire Sponsel representative.