WASHINGTON (BRAIN) — With Congress finally agreeing to additional COVID-19 funding, retailers in need of financial assistance should begin preparing now.
On Monday, a $900 billion relief package — including $284 billion for the Paycheck Protection Program — was approved and was sent to the White House for President Donald Trump's signature.
On Tuesday, Trump expressed displeasure with the bill, calling it disgraceful, and suggesting it won't get the quick signature many were expecting. On Sunday night, he finally signed it.
PeopleForBikes, which has been offering industry loan resources since the pandemic began in the spring — said retailers should contact their lender with questions and prepare financial materials for when the application period opens.
The Small Business Administration, which last accepted PPP applications on Aug. 8, soon will announce revised guidance online.
Announced with the agreement, Congress declared PPP expenses are deductible and the loan amount will not be included in gross income.
Also, businesses that previously received a PPP loan can apply for a second as long as the company has fewer than 300 employees and experienced a 25% reduction in any quarter's revenue from 2019-'20.
More than 1,900 bike-related businesses — retailers, distributors, manufacturers, non-profits, tour and race companies and more — received loans during the first phase totaling $134.7 million. The loans, which are forgiven if spent primarily on payroll, were intended to protect more than 17,000 jobs in the bike industry.
The average loan to bike organizations was $67,200 and the median amount was $26,000. The list was dominated by hundreds of four- and five-digit loans.
Congress approved two rounds of federal funding in April totaling $659 billion for PPP loans and Economic Injury Disaster Loans, which were created as part of the CARES Act. Congress extended the loan deadline an extra month for small businesses in July when $139 billion in funding remained.
