Senate Relief Package Would Allow Many HBAs to Access PPP Loans
Senate Republicans and the White House released a new $1 trillion coronavirus relief package Monday that includes key provisions for which NAHB has advocated. Of interest to the housing community, the Senate bill would:
- Allow 501(c)(6) organizations — including many home builder associations throughout the nation — to access small business loans under the Paycheck Protection Program (PPP) subject to certain size and lobbying restrictions. The organization must have 300 or fewer employees and the lobbying activities of the organization do not comprise more than 10% of the total activities of the organization;
- Provide a simplified forgiveness process, particularly for small business PPP loans under $150,000 (Borrowers with loans under $150,000 would not have to submit to the lender documentation required under the CARES Act but would need to retain relevant loan records for three years.);
- Allow the borrower to select a covered period for a forgivable PPP loan that ends either eight weeks after origination of the loan or Dec. 31, 2020.
- Permit businesses to apply for a second PPP loan if they have fewer than 300 employees and experienced a 50% reduction in gross receipts in the first or second quarter of 2020 relative to the same period last year
- Include business liability protections;
- Provide a one-time payment of $1,200 per taxpayer ($2,400 for married couples) plus $500 per each dependent; and
- Include funding for reopening schools and coronavirus testing.