New Coronavirus Relief Bill Includes More Money for PPP

A new $900 billion coronavirus relief bill passed by Congress and signed by the president on Dec. 27 includes another opportunity to apply for the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) grants.

The legislation does not include funding specific to the health club industry, as lobbied for by IHRSA, the trade association for health clubs. It does provide $15 billion in money for live venues and independent movie theaters.

Nonprofits can apply for funds under the new legislation, but publicly traded companies cannot, both of which are changes from the first round of PPP.  

The legislation designates $284 billion for the new round of PPP. Business owners who did not previously apply for forgivable loans in the first round of PPP can apply for the new round of loans through March 31, 2021. The funds can now be used for more than payroll.

Business owners who applied for PPP in the first round are allowed to apply for a second loan of up to $2 million.

Loan eligibility is more strict in this round. Businesses cannot have more than 300 employees, and business owners must show that they have experienced a decrease in sales of 25 percent or more during at least one quarter in 2020 compared to the same quarter in 2019.

The legislation also includes $20 billion for EIDL grants through the Small Business Administration.

For more specifics on the new legislation, read this article, “What the $900 Billion Omnibus COVID Relief Bill Means for Gyms,” by IHRSA and this article, “How to Get PPP Round 2.0 Money and Government Help for Your Health Club,”  by Eric Killian of The Fitness CPA.