New Coronavirus Relief Bill and What We Know Now

As many of you know, the Senate passed a (roughly) $900 billion COVID-19 stimulus deal Monday, December 21, 2020 in the late evening. This includes another round of stimulus checks and benefits for jobless Americans. As we dive further in to the details of the bill, below are initial findings we want you to be aware of.

Items to be aware of included in this new legislation:

• Extension of unemployment benefits by Feds at $300 per week supplemental until March 14, 2021
  • Includes gig workers and the self-employed
  • Includes extra $100 per week for those who are both self-employed and employed
• Another round of stimulus payments using the same income criteria as in the CARES Act, but $600 per adult and child
  • Could reach bank accounts as soon as next week

• PPP Round 2 (PPP2)

  • Targeting two groups
    • 2^nd draw for hardest hit businesses
      • 300 or fewer employees and
      • Reduction of 25% or more revenue in any calendar quarter — 2020/2019
    • First time borrowers
      • Eligibility:
        • 500 or fewer employees, eligible for SBA 7(a) loan programs
        • Sole Proprietors, independent contractors, and “eligible” self-employed individuals
        • In general, any business with fewer than 500 employees at one location with NAICS starting 72 (accommodation and food services)
        • Non-profits, including churches, and adds 501(c)(6) organizations meeting certain criteria
  • Expenses paid with forgiven PPP loan funds will be allowed as deductions on your tax returns.
    • This is true, regardless of the date of loan forgiveness. If you applied for forgiveness prior to this new legislation, you will still be able to take the expenses.

• Simplified Loan Forgiveness Process 

  • $150k or less loan amount
    • Sign and submit one-page form
    • Attestation required that support is available
  • Loans more than $150k and less than $2M
    • No requirements to submit documentation of
    • FTEs, payroll and pay rates (including tax filings)
    • Bank records

As always, if you have any questions, please do not hesitate to contact us here. We are always here to Listen and Serve! Stay tuned for additional information as it comes out.