The Paycheck Protection Program rules are changed to make certain news organizations eligible for loans. First, the organization may be, “…any station which broadcasts pursuant to a license granted by the Federal Communications Commission…”
In addition, the news organization must either employ fewer than 500 people or meet the Small Business Administration (SBA) size standard, or be a nonprofit.
‘‘(AA) that employs more than 500 employees, or the size standard established by the Administrator for the North American Industry Classification System code applicable to the business concern, per physical location of such business concern; or
‘‘(BB) any nonprofit organization or any organization otherwise subject to section 511(a)(2)(B) of the Internal Revenue Code of 1986 that is a public broadcasting entity (as defined in section 397(11) of the Communications Act of 1934 (47 U.S.C. 397(11))).”
The North American Industry Classification System sets the size standards for what qualifies as a small business by size (number of employees or average annual receipts). We don’t know how many news organizations are eligible, but we’re betting quite a few. So, if you run a news business, get your General Counsel and your bean counter on speed dial and see if you qualify. And remember, if your loan is for $150,000 or less, you can apply for forgiveness on the back of your festive holiday letter. (See our previous post on that.)