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1 1 (October 7, 2021)

handle is hein.crs/govegxg0001 and id is 1 raw text is: Congressional ____ ~ Research Service COVID-19-Related Loan Assistance for Agricultural Enterprises Updated October 7, 2021 The Coronavirus Aid, Relief, and Economic Security Act (CARES Act; P.L. 116-136) created the Small Business Administration's (SBA's) Paycheck Protection Program (PPP), expanded eligibility for Emergency Economic Injury Disaster Loans (EIDLs), and established Emergency EIDL grants to provide short-term, economic relief to certain small businesses and nonprofits. The CARES Act also made certain agricultural enterprises eligible for SBA COVID-19 relief. When the SBA stopped accepting PPP loan applications on May 31, 2021, it had approved more than 11.8 million PPP loans, totaling nearly $800 billion. PPP Loan Terms and Eligibility PPP loans feature a two- or five-year term at 1% interest; a waiver of the SBA's up-front loan guarantee and annual servicing fees; relaxed underwriting requirements; deferred payments for six months (interest does accrue); and loan forgiveness of up to 100% of the loan's principal amount under specified conditions related to the borrower's retention of employees and wages and the use of the funds for specified purposes, such as payroll and employee benefits. Initially, PPP loans could be used for payroll costs; group health care benefits during periods of paid leave, and insurance premiums; employee salaries or similar compensations; payments of interest on any mortgage obligation (excluding any prepayment of or payment of principal on a mortgage obligation); rent (including rent under a lease agreement); utilities; interest on any other debt obligations incurred before February 15, 2020; and refinancing of an SBA EIDL made between January 31, 2020, and April 3, 2020. The Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (Division N, Title III of the Consolidated Appropriations Act of 2021), enacted on December 27, 2020, (P.L. 116-260) expanded the list of allowable uses of loan proceeds and PPP loan forgiveness to include personal protective equipment, supplier costs, software payments, cloud computing, other human resources and accounting needs, and property damage costs from the 2020 public disturbances that are not covered by insurance. Congressional Research Service https://crsreports.congress.gov IN11357 CRS INSIGHT Prepared for Members and Committees of Congress