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What is in the Second Stimulus
Package?
Leaders of Congress have reached
an agreement on a $900 billion pandemic relief bill. This will
include enhanced unemployment benefits and additional direct cash
payments to individuals under a certain income level. It is unclear
what that income level is at this time.
Here is what we know so far.
Please remember NOTHING is final at the time this was written.
Stimulus Checks
This package includes direct
stimulus payments of $600 to individuals, the stimulus will once
again be sent to people below a certain income level. As of
Sunday night, this level has not been set. Eligible families will
also receive an additional $600 per child.
Unemployment Benefits
Under this new package, unemployed
individuals would receive a $300 weekly federal enhancement in
benefits for 11 weeks, from the end of December through mid-March.
This agreement also extends, the Pandemic Unemployment Assistance
program to include benefits to gig workers, freelancers,
independent contractors, and the self-employed and certain others
affected by Coronavirus. The Pandemic Emergency Unemployment
Compensation program will provide an additional 13 weeks of payments
to individuals that have otherwise received all benefits.
Small Business Loans
This bill would reopen the
Paycheck Protection Program. This means that some of the
hardest hit small businesses will be able to apply for a second PPP
loan. The PPP loan program will be expanded to include eligibility
for nonprofits organizations, news outlets and independent
restaurants. This second package, also, carves out $15 billion
for live venues, independent movie theaters and cultural
institutions, which were not included in the first package.
Businesses that received a PPP
loans in the spring with the first round of PPP loans and have had
them forgiven, will be allowed to deduct the costs covered by those
loans on their federal tax returns. While the issue had been a
point of contention, Sen. John Thune (R-S.D.) said the costs would
be deductible under the final agreement.
Funding for Schools and Childcare
This would provide $82 billion in
aid for K-12 schools and colleges, with an additional $10 billion
included for childcare providers.
Nutrition Assistance
This package would raise SNAP
benefits by 15% for six months, this does not expand eligibility.
This bill would also expand the Pandemic EBT program to families
with children under age 6, deeming them “enrolled” in childcare –
which makes them eligible for benefits.
Vaccine Funding
The agreement provides $20 billion
to purchase vaccines so that be available at no charge and $8
billion for vaccine distribution.
This bill does not include any
direct aid to state and local governments.
Information for this article
was gathered from CNNPolitics article Second stimulus package: See
what's in it.
If you have any questions please
contact Kathy Ettensohn, CPA at kettensohn@hsccpa.com or Mike Vogel, CPA at mvogel@hsccpa.com.
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