Paycheck Protection Program, Round 3

Paycheck Protection Program, Round 3
by Kimberly Ripberger, CPA

The American Rescue Plan Act of 2021 (“Act”) allocated an additional $7.25 billion to the Small Business Administration (“SBA”) for the first and second rounds of funding for the forgivable loans under the Paycheck Protection Program (“PPP”). The Act did not extend the current expiration date to beyond March 31, 2021. However, the Act did expand PPP eligibility to include additional organizations that were previously ineligible from prior Acts.

This Act extended the eligibility to additional non-profit organizations, including 501(c)(5) labor organizations, 501(c)(7) social and recreational clubs, and 501(c)(8) fraternal societies. The new categories of non-profit organizations are eligible to receive PPP loans as long as the following conditions are met:
1. Do not receive more than 15% of receipts from lobbying activities;
2. The lobbying activities do not comprise more than 15% of their activities;
3. Cost of its lobbying activities did not exceed $1 million during the most recent tax year that ended prior to February 15, 2020; and
4. Does not employ more than 300 employees.

In addition, the Act expanded PPP eligibility to internet-only news and periodical publishers with more than one physical location, limited to no more than 500 employees per physical location or the applicable SBA size standard.

The Act established a $28.6 billion Restaurant Revitalization Fund (RRF) to address COVID-19’s devastating impact on the food services industry. In addition to restaurants and bars, the legislation broadened eligibility for RRF grants to any place of business where patrons assemble to consume food or alcohol, including food trucks, brewpubs, and caterers. The Act permits grants of up to $10 million for an affiliated group, or $5 million per physical location.

Grants will be calculated by subtracting 2020 revenue from 2019 revenue and may be used for a variety of eligible expenses including payroll, rent, and personal protective equipment (PPE) costs. The SBA will prioritize applications from restaurants owned and operated by women, veterans, and socially and economically disadvantaged individuals for the first 21 days of the RRF.

The Act sets aside an additional $1.25 billion for the Shuttered Venue Operators Grant (SVOG) program. These grants are separate from the RRF and an entity may not receive an RRF grant if it has applied for or received an SVOG.

We will be continually monitoring additional guidance as it is released and will provide updated information on this page as it becomes available, so please check back often.

In addition, please feel free to reach out to your BRC advisor with any questions you may have.

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Kimberly Jessup Ripberger Partner, Assurance Practice Area Leader, CPA

Kimberly is an assurance partner at our firm with over 16 years in public accounting.  Her previous experience included working in Industry in process improvement and project management.  She works primarily with clients involved in the governmental, non-profit and affordable housing industries, including tax credit properties, U.S. Department of Housing and Urban Development, and […]