Wednesday, July 24, 2024

COVID relief package passes; latest PPP round underway

In late December, shortly before the holiday season began, Congress cast final votes to pass the $900 billion bipartisan coronavirus relief package.

Shortly afterward, the bill was signed by President Trump and put into action. The bill did include more funds for a new round of the Paycheck Protection Program, and that round is currently underway as this issue of Oklahoma Banker goes to press.
Some provisions of the bill include:

$284 billion in new funds for the Paycheck Protection Program, including a second draw option for prior PPP borrowers and $15 billion set aside specifically for first and second draws issued by community financial institutions, including community development financial institutions and minority depository institutions.

A simplified PPP forgiveness process allowing PPP loans of $150,000 or less to be forgiven after the borrower completes a one-page attestation.

Repeal of a CARES Act provision that required PPP borrowers to deduct the amount of their EIDL advance from their PPP forgiveness amount.

Enhancements of existing SBA loan programs, including the 7(a), 504 and microloan programs.
Other non-banking aspects of the bill include:

Provides $82 billion in aid for K-12 schools and colleges.

An additional $10 billion is included to support child care providers that have struggled because of the pandemic.

Employers who are deferring their workers’ payroll taxes under Trump’s executive action from August now have until the end of 2021 to increase their employees’ withholding to pay back the taxes owed. Originally, the deferred amount had to be repaid by April 30.

Be sure to keep up with the latest information on the PPP via the OBA’s website, OBA Updates and – for the latest breaking information – OK Banker Directs.