Next Round of Coronavirus Economic Stimulus on the Way

After months of negotiating, Congress has finally agreed to additional COVID-19 relief. 《冠状病毒紧急应对救济法案, 2021, expected to be incorporated into a larger overall spending bill, 包含9000亿美元的紧急基金.

The bill includes several provisions providing targeted relief to individuals and smaller businesses through renewed support for the Paycheck Protection Program and extension of unemployment benefits. These provisions, 得到了两党的支持, are intended to provide financial relief for individuals and businesses until vaccines are widely available next year and economic activity can begin to return to pre-pandemic normalcy. The bill, which is still being drafted as we go to press but is expected to be signed, contains many provisions, a few of which include:

• Business expenses paid for with proceeds from PPP loans are now tax-deductible. With this legislation, Congress confirms their original intent when enacting the CARES Act back in March. Recent guidance issued by the IRS indicating that these expenses are nondeductible is now overridden. 扩大商务伙食扣除额. 

• 雇员少于300人的小企业 and a sustained 25% revenue loss in any quarter of 2020 would be eligible to receive a second forgivable PPP loan. Additional information and guidance are needed regarding the application process, “持续”的定义,减少是如何具体计算的, and whether related businesses are counted on the employee limitation. 

• The employee retention credit will be extended and expanded. 

• Additional financial support for live entertainment venue operators, independent movie theaters and museums impacted by the health crisis.

• An extension of the six-month SBA program under Section 1112 of the CARES Act that covers the payment of principal, 合格借款人的利息和某些费用. 
• An extension (from December 31) of unemployment benefit programs, 包括流行病失业援助, Pandemic Emergency Unemployment Compensation and Federal Pandemic Unemployment Compensation programs. Federal supplemental insurance benefits are expanded for an additional 11 weeks but are set at a lower level of $300/week (versus $600/week under the CARES Act).
• Provides $2 billion in funding for nursing homes and other assisted living facilities to support testing for and tracing of the COVID-19 virus.
• Simplified loan forgiveness application process for borrowers with PPP loans less than $150,000. 
• Additional Economic Stimulus Payments of $600/person (compared to the $1,根据《关怀法案》每人支付200美元).

We will share more information when the final bill becomes executed and as additional details become known. 请不要犹豫，联系你的 Schneider Downs 专业人士获取更多信息.