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Small Business and the Stimulus Package Highlights – CVSBDC


This information is provided by the Central Virginia Small Business Development Center as of December 30, 2020.

We await guidance from SBA and opening of bank portals. In the meantime, we recommend preparing your 2019 and 2020 quarterly figures.

You can make an appointment for assistance from CV SBDC financial advisors anytime by calling 434-295-8198 or emailing

Paycheck Protection Program (PPP)

  • $284 billion has been included for the PPP version 2 (PPP2). The same breakdown of 60% payroll, 40% expenses applies for forgiveness (to be spent within 8-24 weeks); however, additional expenses are eligible within the 40% (such as cloud computing and accounting expenses, PPE and other workplace modification expenses to meet COVID 19 guidelines, and supplier expenses that were necessary at the time of purchase).
  • 501(c)(6) not-for-profit organizations will be eligible. This includes Chambers of Commerce and Destination Marketing Organizations. Must have 300 or fewer employees and be within certain lobbying limits (15% of revenue, 15% of expenses, $1M in expenses).
  • PPP2 funds are NOT taxable.
  • PPP2 recipients can receive up to $2 million if they meet the following criteria:
    300 or fewer employees,
    have used or will use the full amount of their first PPP loan,
    can show a 25% revenue decline in any 2020 quarter compared to the same period in 2019.
  • PPP2 will permit first-time borrowers from the following groups:
    businesses with 500 or fewer employees eligible for other SBA 7(a) loans,
    sole proprietors, independent contractors, and eligible self-employed individuals,
    not-for-profits, including churches,
    NAICS codes starting with 72 with fewer than 300 employees per location.
  • Borrowers who returned all or part of a previous PPP loan can re-apply for the maximum available to them.
  • Borrowers can receive up to 2.5X average monthly payroll, up to $2 million, except for NAICS code 72 entities, which can get 3.5X their average payroll costs, up to $2 million.
  • Loan forgiveness for amounts under $150,000 remains simplified.
  • To receive forgiveness, the first PPP loan must be exhausted by the time the PPP2 is received.

Economic Injury Disaster Loan (EIDL)

  • $20 billion will be used to replenish the EIDL “first advance” program for businesses in low-income communities. New EIDL grants (up to $10,000) will not be deducted from PPP forgiveness.
  • Loan eligibility if more than 30% reduction in revenue or in a depressed area.


  • Can apply for PPP and employee retention tax credits (both) if less than 500 employees and revenue reduction of greater than 20%. Up to 50% of wages for 2020 and up to 70% of wages for first 2 quarters of 2021.


  • Closed live-venues, independent movie theaters, and cultural institutions can access a pool of $15 billion grants, up to $10M. Grant recipients can NOT also get a PPP2 loan.