Arguably the most popular provision of the CARES Act for businesses and nonprofit organizations was the Paycheck Protection Program (PPP) Loans, which provided these organizations with a necessary lifeline to assist with the COVID-19 pandemic. The original program provided employers with loans of up to $10,000,000 based on 10 weeks (2.5 months) of their average monthly payroll. The loans were intended to be used to cover payroll and certain other costs, and, subject to certain guidelines, were eligible for forgiveness to the borrower.
As the pandemic has continued into 2021, many businesses and nonprofits are still suffering from reduced operations and revenues. As result, included in the 2021 appropriations & COVID-19 relief bill passed in late December 2020 was the “Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act”, which had a goal of continuing the PPP loan program and contained other small business support.