Late Monday, Congress approved a $900 billion stimulus package to provide money for small businesses, schools and child-care, and vaccine distribution, as well as extending enhanced federal unemployment benefits and providing stimulus checks. You can find the full bill (5,593 pages) here. Below is a summary of key components:
Relief for Businesses
- Paycheck Protection Program (PPP) – The PPP program will reopen through March 31, 2021 with more than $284 billion for first and second forgivable PPP loans. It has expanded for businesses up to 300 employees and expanded eligibility for nonprofit organizations,. Previous recipients can reapply if revenues are impacted by 25% or greater due to the pandemic.
- Businesses that received PPP loans and had them forgiven will be allowed to deduct the costs covered by those loans on their federal tax returns.
- Restaurants, Hotels, Accommodation – PPP loans can be 3.5 times your average monthly payroll (other industries will continue to use the calculation of 2.5 times monthly payroll cost up to $10 million, whichever is lower).
- The package includes $15 billion for the entertainment industry, including independent movie theaters, entertainment venues, music clubs and cultural institutions.
- The U.S. Chamber has created a new Guide to Small Business COVID-19 Emergency Loans to provide the latest information and answers to FAQs about the changes made to the PPP and EIDL programs. You can view the guide, which will continue to be updated as more information becomes available, HERE.
- EIDL Advance grants (up to $10,000) will reopen. Those that applied and received less than the full $10,000 are allowed to reapply to get the difference.
- The bill extends two programs that support the long-term unemployed, self-employed, freelance and gig workers by 11 weeks. It also provides an additional $300/week federal enhancement to unemployment benefits.
- The bill includes $600 stimulus checks per person, including adults and children, up to a certain income threshold based on individual or joint filing.
- $25 billion in emergency rental assistance and an extension of eviction moratoriums.
- $28 billion for the purchase and distribution of vaccines.
- $82 billion for colleges and schools to cover revenue reductions, coronavirus testing and financial aid.
- $26 billion for nutrition assistance and agriculture and rural programs.
As more details become available, we will be providing updates and information to the business community.
We want to extend our thanks to Senators Toomey and Casey and Congressman Smucker for supporting the package that will provide relief to businesses in our community.