Congress reached an agreement late on Sunday, December 20th, for a $900 billion stimulus package. The Bill is expected to pass the House and Senate and be signed into law by December 23rd. The full text of the Bill has just been released and we are reviewing the details. Meanwhile, below are the highlights of how the money has been allocated. When we have fully reviewed the final text, we will update this article.
- Business Loans & Assistance – $325 billion for small businesses including:a. $284 billion of forgivable loans for a new Paycheck Protection Program for businesses with 300 or fewer employees that can show a loss in revenue (more details to follow). As an additional boost, it looks like any expenses paid out of the original and new PPP loan proceeds will be tax-deductible after all. The PPP 2nd draw program will also be available to nonprofits, local newspapers, television, and radio broadcasters.b. $20 billion of additional money for EIDL loansc. $15 billion for live venues, independent movie theaters, and museums
- Direct Checks – $166 billion in direct checks:a. Individuals making up to $75,000 per year will receive a single payment of $600b. Couples making up to $150,000 per year will receive $1,200c. There will be payments of $600 per eligible child
- Unemployment – $120 billion in extra unemployment help consisting of:a. An extra $300 per week in federal unemployment benefitsb. Extended to March 14th, 2021
- Education – $92 billion for education and childcare:a. $54 billion for public K-12 schoolsb. $23 billion for higher educationc. $10 billion for childcare
d. $4 billion for a governors’ relief fund
e. An additional $7 billion to make broadband more available for low-income families and expand to more rural areas
- Vaccines – $69 billion for vaccines, COVID-19 testing, and tracing including:a. $20 billion for the purchase of vaccines.b. $9 billion for vaccine distributionc. $22 billion to help states with testing, tracing, and COVID-19 mitigation programs
- Transportation – $45 billion for the transportation industry, broken down as:a. $15 billion for airlinesb. $14 billion for public transportationc. $10 billion for state highways
d. $2 billion for airports
e. $1 billion for Amtrak
- Housing – $25 billion to state and local governments to help tenants pay for rent and utilities plus an extension of the ban for evictions until January 31st, 2021
- Food and Farmer Assistance – $26 billiona. $13 billion for the Supplemental Nutrition Assistance Program (SNAP)b. $13 billion of direct payments to farmers to help cover pandemic-induced losses
Have questions about COVID-19? We have created a Resource Center for individuals and businesses.
[WEBINAR] PPP Second Draw Program – Rules for Eligibility and Forgiveness w/ Live Q&A
Wed, Dec 23, 2020 2:00 PM – 3:00 PM PST
The $900 billion COVID-19 relief Bill has been published, and even though it has not been signed into law, it contains all the details of the new $284 Billion Paycheck Protection Program, including rules for eligibility, maximum amounts, new qualified expenses, and simplified forgiveness application documentation. It also contains definitive rules on the tax deductibility of expenses forgiven under both the Initial and Second Draw loan program.
This webinar will give sufficient details about the program so that customers are prepared and ready to apply as soon as lenders make new PPP loan applications available.
Registration for this webinar is closed
About the Author
Paren Knadjian, Practice Leader
Mergers & Acquisitions, Technology, PPP Forgiveness
Paren is the practice leader of the M&A and Capital Markets group at KROST. He comes with over 20 years of experience in mergers and acquisitions as well as equity and debt financings. In that time, Paren successfully completed over 200 M&A and Capital Markets transactions worth over $1 billion, acting as both a buy-side and sell-side advisor. » Full Bio