A Business Guide to the December Federal Coronavirus Relief Package

On Sunday night, President Trump signed the coronavirus relief and government funding bill into law, but sent it back to Congress with a redlined version of the bill asking for changes. Everyone is uncertain whether Congress will make any or all of the his requested changes. However, below is a summary of the bill.

On Dec. 21, 2020, Congress passed the Consolidated Appropriations Act, 2021, containing one of the largest relief packages in history at more than $900 billion. This relief package provides direct payments of up to $600 to individuals, restores the Federal Pandemic Unemployment Compensation at $300 per week, provides additional funding for the Small Business Administration’s Paycheck Protection Program while allowing for certain borrowers to draw a second round of PPP funding, and includes grants for shuttered live venue operators. This bill also ensures tax deductibility for expenses paid with forgiven PPP loan money.

The 5,593-page legislation also includes an extension of several provisions of the Coronavirus Aid, Relief and Economic Security Act, including paid sick and family leave credits, the employee retention credit, the airline payroll support program, and more.

The Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (part of the Consolidated Appropriations Act) includes $284 billion in additional funding for the PPP, $15 billion in grants for shuttered venue operators and $20 billion in new Economic Injury Disaster Loan Assistance (EIDL) grants for eligible entities located in low-income communities. High-level details on each are included in this program overview from RSM.

If you have any questions please contact Kathy Ettensohn, CPA at kettensohn@hsccpa.com or Mike Vogel, CPA at mvogel@hsccpa.com.

Print Friendly, PDF & Email