After a week-long delay, President Trump signed the latest $2.3 trillion coronavirus relief stimulus package. As reported, early highlights of the legislation include:
- The ability for businesses to deduct the expenses that were funded from proceeds of PPP loans.
- The ability for some businesses who did not originally apply for a PPP loan to apply.
- The ability for some businesses who have already received a PPP loan to apply for a second loan, if they meet certain economic parameters.
- Confirms that the forgiveness parameters are similar to the current rules.
- Caps the new loans at $2 million but lets certain hotels and restaurants to base their loan amounts on 3.5 times payroll instead of 2.5 times.
- Provides some simplified forgiveness procedures.
- Rescinds the reduction of forgiveness by the Economic Injury Disaster Loans (EIDL) grant amount.
Other Business Provisions
- A temporary 100% business meal deduction to be allowed if the expense is provided by a restaurant and incurred after December 31, 2020 and before January 1, 2023.
- Support for independent movie theaters and cultural institutions and additional targeted grants through the EIDL program.
- Expands the Employee Retention Tax Credit (ERTC), extends it through June 30, 2021, and provides that employers who receive PPP loans may qualify for the ERTC for wages not reimbursed by the PPP loan.
- Extends the refundable payroll tax credits for paid sick and family leave through the end of March 2021.
- Provides additional funding and extends the EIDL grant period to December 31, 2021.
- A second set of $600 stimulus checks for individuals making up to $75,000 per year and $1,200 for married couples making up to $150,000 per year, as well as $600 for each child dependent with a reduction in benefit as income exceeds these amounts. (President Trump is asking Congress to increase to $2,000 and $2,400, respectively, with a vote hopefully before year end).
- Extended unemployment benefits up to $300 per week to run through March 14, 2021.
- Extends the Pandemic Unemployment Assistance (PUA) program and the Pandemic Emergency Unemployment Compensation (PEUC) programs.
- Extends the moratorium on evictions to January 31, 2021.
- Colleges and schools benefit with funds earmarked for HVAC repair and replacement to reduce the risks of infections and reopen classrooms and the legislation includes additional support for child-care assistance.
- Transportation related assistance including additional support for airliner employee and contractor support as well as funds for transit, highways, intercity buses, airports and Amtrak.
While the legislation is over 5,500 pages and contains additional items, this is great news as we end 2020. If you need assistance or have any questions to the new legislation, please call your CironeFriedberg professional. You can reach us by phone at 203-798-2721 (Bethel), 203-366-5876 (Shelton), or 203-359-1100 (Stamford), or email us at firstname.lastname@example.org.