As mentioned in the latest Your Congress in Action earlier this week, the new COVID relief package was signed into law at the very end of 2020. We wanted to break down the provisions most important to CRM in greater detail. Read on for more information on how the relief package benefits your firm!

Second draw loans can receive a loan amount of up to 2.5 times their average monthly payroll costs in the one year prior to the loan or the calendar year, although no loan can be greater than $2 million. Eligible expenses for forgiveness for a second draw loan equal to the sum of their payroll costs, as well as covered mortgage, rent, and utility payments, covered operations expenditures, covered property damage costs, covered supplier costs, and covered worker protection expenditures incurred during the covered period. To receive full forgiveness, borrowers are still required to use at least 60% of the loan proceeds on payroll costs.

The National Law Review has a comprehensive summary of the new PPP changes and second draw loans here.

ACRA will continue to bring you pandemic-related news and updates important to CRM firms. Stay tuned to the ACRAsphere for as more information unfolds!