The National Newspaper Association distributed the following regarding the additional stimulus funding passed by Congress and approved by Pres. Donald Trump:
The COVID-19 stimulus bill considered in the late days of the 116th Congress is now a law. Before community newspapers can fully avail themselves of the stimulus provisions in the new law, more forms and regulations from the Treasury Department and Small Business Administration must be released.
But it is not to early to queue up with lenders who will manage the Paycheck Protection Program loans, according to NNA.
Here are some of the provisions for PPP 2.0 loans to be available through March 31, 2021.
To be eligible, a business must demonstrate:
- It lost at least 25% of gross receipts in any quarter of 2020, compared to the same quarter of 2019;
- It has 300 employees or fewer; AND
- It has used or plans to use all of its revenue from its first PPP loan.
The amount a business may borrow is still the equivalent of one month’s payroll and payroll expenses multiplied by 2.5. But it may spend the money on a wider range of expenses than in PPP 1.0, including payment for supplies used in production and the costs of complying with COVID health and safety rules for worker protection, such as ventilation systems, sneeze guards or personal protective equipment. A business may choose any period between eight and 24 weeks for spending the money. And loans under $150,000 will be allowed to us a short-form (one-page) application for forgiveness.
There are other provisions in the new stimulus law.
- Newspaper groups may be newly eligible for PPP loans under expanded affiliate rules previously applied primarily to the hospitality industry.
- Newspapers that previously took Economic Injury Disaster Loans do not need to deduct that amount from the PPP forgiveness total in 2.0 loans.
- Owners that were previously unable to take the full amount available under PPP 1.0 because of changes in regulations may apply for the remainder of the 1.0 loan. New rules for these applications are due from the federal agencies by mid-January.
- Expenses covered by PPP loans will remain deductible from gross revenue.
The National Newspaper Association represents 1,600 community newspapers across the United States.