Congress is finally on the verge of passing a far-reaching $900 billion Covid relief package that promises to accelerate vaccine distribution and deliver much-needed aid to small businesses hit hard by the pandemic, Americans who have lost their jobs during the economic upheaval and health care workers on the front lines of the crisis. The bill which includes COVID relief and government funding is 5,593 pages. View Bill.
House is planning to move first and is expected to vote later today, Monday December 21, 2020 on the pandemic relief deal. Then it will move to the Senate.
The full details of what will be in the relief package are not official until the Bill is signed into law. Follow are some of the key provisions, according to a release Sunday evening from House and Senate Democratic leaders:
Small Business Aid
- Expenses paid for with forgiven PPP loan funds will be deductible.
- $284 billion for forgivable Paycheck Protection Program loans.
- Eligible entities may receive a second PPP loan. Must meet economic need certification, decrease of at least 25% in gross receipts, size limitations and other restrictions.
- Maximum amount for second PPP loan is $2 million.
- $15 billion “in dedicated funding for live venues, independent movie theaters, and cultural institutions”
- Expanded PPP eligibility to include nonprofits and local newspapers, TV and radio broadcasters.
- Simplified one page application for loans under $150,000 (all PPP rules, including 60% payroll cost requirement, still apply.)
- Targeted EIDL program for businesses hit hardest by COVID-19
- EIDL cash advances will not be deducted from PPP loan forgiveness amount
Aid for Individuals, Schools, Vaccine Distribution and More
- Direct payment checks of up to $600 per adult and child
- $300 per week for enhanced unemployment insurance benefits
- $25 billion for rental assistance and an eviction moratorium extension
- $82 billion for education providers like schools and colleges, including aid to help reopen classrooms safely
- $10 billion to help with child care assistance
- $13 billion in increased Supplemental Nutrition Assistance Program and child nutrition benefits
- $7 billion to bolster broadband access to help Americans connect remotely during the pandemic
- Funding totaling in the billions of dollars to support coronavirus vaccine distribution, testing and contract tracing efforts and health care workers
- A tax credit “to support employers offering paid sick leave”
Of course, until the legislation is signed into law, revisions may occur. In addition, as we saw with the CARES Act and Paycheck Protection Program Flexibility Act, additional Treasury guidance will certainly follow.
We will provide more detailed information once the legislation is finalized. In the meantime, feel free to contact your Warady & Davis LLP advisor at info@waradydavis.com.
Applying for forgiveness
W&D is available to help you with the PPP forgiveness process. From keeping you informed of the latest legislation developments to answering PPP forgiveness related questions, or to full engagements to assist you in preparing your PPP loan forgiveness application, please do not hesitate to reach out. Contact your Warady & Davis advisor or our PPP team at 847-267-9600; info@waradydavis.com.
You can also visit the Warady & Davis LLP COVID-19 Resource Center for a wealth of information on stimulus assistance, new legislation and much more. This information is updated regularly.