The Paycheck Protection Program is back for another round, giving small business owners new access to an important lifeline.
“Without this additional funding, many of our local small businesses would simply be forced to close their doors or lay off their staff,” Seventh District Democrat Abigail Spanberger said, by way of encouraging eligible small businesses to apply for financial assistance.
This new round of PPP funding includes multiple commonsense changes to better reflect the financial challenges facing restaurants, and includes modifications to support restaurants as they look to apply for and receive PPP loans, most notably, a change in the award formula to recognize the unique payroll restrictions of independent restaurants.
Additionally, the COVID-19 relief package signed into law last month reverses rulings from the U.S. Treasury Department and allows PPP forgivable loans to still count towards tax deductions. Spanberger advocated for this change in December.
“Last month, we finally passed a bipartisan relief package that includes billions in additional funding for the hardworking men and women who keep our economy strong,” Spanberger said. “Going forward, we must work together to keep our businesses afloat and help them prepare for a safe and successful economic recovery. As that occurs, these loans will serve as a much-needed bridge from the current crisis to the future.
“I’d like to thank all Central Virginia small businesses who’ve provided feedback about what’s working – and what’s not – related to the PPP program, and I encourage any business with questions or concerns to please reach out to my office.”
For more information, small businesses can visit the SBA website here and find contact information for local SBA representatives here.
The most recent COVID-19 relief package also ensures that Economic Injury and Disaster Loan Advance grants will no longer be subtracted against a small business owner’s PPP loan forgiveness.
More than 113,000 Virginia businesses received PPP assistance in 2020 in response to the COVID-19 crisis.
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