P3 Eligibility Rises Under American Rescue Plan Act, But Application Deadline Remains March 31 | PilieroMazza SARL

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On March 11, 2021, President Biden signed the American Rescue Plan Act of 2021 (Act). The law allocated an additional $ 7.25 billion in funding to the Paycheck Protection Program (P3) for small businesses. In addition, not-for-profit entities and digital media companies are now allowed to receive funding. Below are the main updates on the eligibility of PPPs made under the Act and details on the borrower’s application deadline.

By law, eligible nonprofits now include those that employ 500 or fewer employees per physical location (300 or less per physical location for second-time PPP borrowers). These organizations should not receive more than 15% of the revenue from lobbying activities. In addition, lobbying activities cannot represent more than 15% of the organization’s activities and the cost of the organization’s lobbying activities cannot exceed $ 1 million during the last tax year ended before February 15, 2020.

The law also extends PPP eligibility to digital media companies, including publishers of newspapers and online news. This is subject to a limitation of no more than 500 employees per physical location or the applicable size standard of the Small Business Administration.[1] To be eligible, the organization will need to certify in good faith that it is an Internet-only news or periodical publisher and that the loan will be used to support the production or distribution of local or emergency news.

Although more small businesses are now eligible for PPP financing, the deadline for the first and second draws of PPP loans remains. March 31, 2021.[2] The deadline prevents businesses from being approved after March 31, 2021, so if your business needs relief, it’s imperative that you get in touch with a lender as soon as possible.

For more information on PPP eligibility, borrower requests and discount, please contact Christine Fries, the author of this blog, or a member of PillaroMazza‘s Public Procurement Group.

[1] The Small Business Administration uses the North American Industry Classification System (NAICS) to determine size standards. Information regarding NAICS can be found here.

[2] There is bipartisan support in the House of Representatives and Senate for an extension of the PPP deadline until May 2021, but currently the deadline remains March 31, 2021.

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