$900 Billion COVID-19 Aid Economic Relief Bill

Congress and President Trump are working through the nearly 5,600-page Consolidated Appropriations Act of 2021, the package expands and extends several critical provisions of the CARES Act enacted in the spring of 2020 to deal with the emerging financial and health care crisis.

This bill has not been signed into law by the president. Below are key provision for businesses and employers.

Businesses and other employers

• New funding for first-time and so-called “second draw” forgivable loans to eligible businesses under the Paycheck Protection Program (PPP), with dedicated set-asides for very small businesses and lending through community-based financial institutions;
• Expanded PPP-eligible expenses (for example, certain operating expenses, property damage costs, supplier costs and worker protection expenses);
• Expanded PPP eligibility for nonprofits, local newspapers, and TV and radio broadcasters;
• Clarification of tax treatment for PPP loans, certain loan forgiveness and other financial assistance under COVID-19 legislation;
• New targeted Economic Injury Disaster Loan grants from the Small Business Administration (SBA) for businesses in low-income communities;
• Continued SBA debt relief payments;
• Dedicated funding for live venues, independent movie theaters and cultural institutions;
• An extended and expanded retention tax credit for eligible employers that continue to pay employee wages during COVID-19 closures or after experiencing reduced revenue;
• Extended tax credits for paid sick and family leave;
• Extended mandatory paid sick and family leave for qualifying COVID-19-related reasons;
• 100% business meals tax deduction for 2021 and 2022 for food purchased from restaurants;
• Enhanced Low Income Housing Tax Credit;
• Extended repayment period for deferred payroll taxes; and
• Extended Work Opportunity Tax Credit, New Markets Tax Credit, and Empowerment Zone tax incentives.

Additional details to come

This is a high-level overview of the anticipated COVID-19 aid package. We are watching the situation closely and provide updates in the near future.

In the meantime, please contact your Whittlesey Advisor with any questions or concerns about how these provisions can affect your individual financial or business situations. We’re here to help.