December 29, 2020

Updated: COVID-Relief Package Details

Home | Entrepreneurs and Emerging Companies | Updated: COVID-Relief Package Details

The President has signed off on the $900 billion federal stimulus package, the second largest after the $2 trillion CARES Act passed in March. 

Included in the COVID-relief 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.

The bill includes 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

The COVID-relief package also includes:

  • $600 direct stimulus payments for individuals making up to $75,000, $1,200 for couples making up to $150,000, plus $600 for dependents
  • $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 an extension to the eviction protection program
  • $26 billion in funding for food stamps, food banks and other nutrition services, farmers and ranchers
  • $69 billion for vaccine purchases, distribution and COVID-19 testing assistance, and support for healthcare providers and mental health
  • 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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