The federal government’s latest spending bill, the Consolidated Appropriations Act (Act), included $284 billion of renewed funding for the Paycheck Protection Program (PPP) and a newly established $15 billion grant program for “Shuttered Venue Operators” (described below). Congress also modified the PPP in numerous ways that should benefit businesses who receive PPP funding.

Under the Act, the allowable uses for PPP funds that will be forgiven was broadened to include, among other expenses, costs associated with protecting workers in compliance with federal health and safety guidelines and property damages caused during public disturbances in 2020 that were not covered by insurance. Additionally, the Act created a simplified loan forgiveness process for PPP loans under $150,000. Lastly, Congress clarified its original intent to allow taxpayers to deduct expenses paid with tax-free, forgiven PPP funds.