A summary of the latest bipartisan COVID-19 relief proposal is now available. Among other provisions, the proposal includes additional Paycheck Protection Program (PPP) funding and unemployment assistance. The bill is still subject to negotiation.
Proposed PPP Provisions
The proposal includes $300 billion in funding for the Small Business Administration (SBA) to provide another round of PPP loans.
- includes businesses with fewer than 300 employees with revenue loss of at least 30% in any quarter of 2020
- expands eligibility to certain 501(c)6 organizations, including local chambers of commerce, economic development organizations, and tourism offices
- makes supplier costs and investments in facility modifications and personal protective equipment (PPE) for safe business operations eligible expenses for forgiveness
- simplifies the loan forgiveness process for PPP borrowers of $150,000 or less
- makes business expenses paid for with PPP loan proceeds tax deductible
Proposed Unemployment Assistance Provisions
The proposal includes an extension of all pandemic unemployment insurance programs.
For Unemployment Recipients:
- extends programs for 16 weeks past the expiration (set for the end of December)
- expands federal supplemental unemployment insurance benefits by $300 per week for 16 weeks (from the end of December into April 2021)
For States Providing Unemployment Benefits:
- provides $1 billion in funding for state systems for technology modernization and fraud prevention
Some of the additional proposed provisions include funding to support state, local, and tribal governments; transportation; vaccine development and distribution; education; and the USPS. Assistance is also proposed for health care providers; child care providers; and nutrition, addiction, and mental health programs.
We’re here to help
ARB is dedicated to updating our clients and community as the legislative implications of the COVID-19 pandemic continue to unfold. We will release updated information once Congress votes on the bill.
Contact us if you have questions about this information or to find out more about our PPP consulting services. Download our 13-Week Cash Flow Analysis tool and access our PPP Loan Forgiveness Workbook. Please also visit our COVID-19 Financial Resource and Tax Center for additional information on related matters.
by Holly Ferguson, CPA