January 2021 Article by:

Michael S. Hampleman & Roman A. Basi

Basi, Basi & Associates at The Center for Financial, Legal & Tax Planning, Inc.

On December 27, 2020, late Sunday night, President Trump signed into law the $900 billion COVID-19 relief bill that was passed approximately a week before by Congress. The legislation, the Consolidated Appropriations Act of 2021, calls for direct payments to individuals and funding to other various communities and sectors that have been hit hardest directly by COVID-19.

This article will specifically examine the second round of Paycheck Protection Program (also known as PPP2) funding administered by the Small Business Association using local banks of potential applicants. First, it will discuss who is eligible to apply for PPP2 funds. Next, it will discuss the loan terms of PPP2 funds in addition to changes that have been made with regards to obtaining funding. Finally, it will address the tax deductibility issue created by the bill.

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