December 23, 2020

$900 Billion COVID-Relief Package Details

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PPP Round 2 and COVID-Relief Package: What You Need to Know

Congress has agreed on a $900 billion federal stimulus package, the second largest after the $2 trillion CARES Act passed in March. The proposal now requires the President’s signature for approval.

Included in the proposed package is round 2 of the Paycheck Protection Program (PPP), which will allow some businesses to apply for a second loan. The first round stopped taking applications in August.

This time around, the relief package outlines more than $284 billion in loans for the PPP:

  • Available to businesses with fewer than 300 employees and a drop in at least 25% of revenue during the first, second or third quarter of 2020
  • Amount available to borrow reduced from $10 million to $2 million
  • More flexibility in how the money is spent
  • Allows for the deduction of expenses (a change from the first round) and for loan forgiveness to be excluded from income
  • Simplified forgiveness process for loans less than $150,000
  • $12 billion carved out specifically for minority-owned businesses
  • Eligibility expanded to more nonprofits and news outlets

More highlights from the COVID-relief package include:

  • Direct stimulus payments, with amount to be confirmed and based on income levels
  • $300 weekly federal unemployment boost, plus additional program extensions
  • $15 billion in grants for live venues, theaters and museum operators
  • $82 billion for K-12 schools and colleges, plus $10 billion for child care providers
  • $25 billion in rental assistance and the eviction protection program extended to January 31
  • $13 billion in funding for food stamps, food banks and other nutrition services
  • $48 billion for vaccine purchases, distribution and COVID-19 testing assistance 
  • $45 billion to support transportation services
  • $7 billion to bolster broadband access
  • Payroll tax deferment option extended until the end of 2021
  • A tax credit for businesses offering paid sick leave

Check back here for continuing updates and more COVID-19 recaps from the Governor and state legislators.

 

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