Resources for Businesses

COVID Relief Package

• Extends program time to 3/31/21
• Grants for shuttled venue operators at $17B with loans up to $10M to eligible person or entity
• Extension of the debt relief program and modifications to loan programs
• Targeted EIDL $10K grant programs for eligible applicants from low income communities and extension of coverage period to 12/31/21
• Provisions for additional eligible expenses (including added operational expenses, property damage from public disturbances, supplier cost, worker protection); streamlined process for loans < $150K; specific group insurance payments as payroll costs; clarification that a business must be in operation as of 2/15/20 for eligibility

Paycheck Protection Program “Second Draw” Loans

• Creates second loan from PPP with a max. of $2M. ​

Eligibility:

• Employ not more than 300 employees
• Have used or will use full amount of first PPP
• Demonstrate at least a 25 percent reduction in gross receipts in Q1, Q2 or Q3 of 2020 relative to the same 2019 quarter
• Provides applicable timelines for businesses that were not in operation in Q1, Q2, Q3, and Q4 of 2019
• Applications submitted on or after January 1, 2021 are eligible to utilize the gross receipts from the fourth quarter of 2020
• Eligible entities must be businesses, certain non-profit organizations, housing cooperatives, veterans’ organizations, tribal businesses, self-employed individuals, sole proprietors, independent contractors, and small agricultural co-operatives
• Affirms the eligibility of churches and religious organizations and prohibits a future administration from making them ineligible. Preserves the application of affiliation rules to nonprofits, which makes Planned Parenthood ineligible.
• Includes set-asides to support first-time PPP borrowers with 10 or fewer employees, second-time PPP borrowers with 10 or fewer employees, first-time PPP borrowers who have been made newly eligible, and second-time returning PPP borrowers. Additionally, provides for a set-aside for loans made by communitylenders.

Loan terms:

• In general, borrowers may receive a loan amount of up to 2.5X the average monthly payroll costs in the one year prior to the loan or the calendar year. No loan can be greater than $2 million.
• Seasonal employers may calculate their maximum loan amount based on a 12-week period beginning February 15, 2019 through February 15, 2020
• New entities may receive loans of up to 2.5X the sum of their average monthly payroll costs
• Entities in industries assigned to NAICS code 72 (Accommodations and Food Services) may receive loans of up to 3.5X average monthly payroll costs
• Businesses with multiple locations that are eligible entities under the initial PPP requirements may employ not more than 300 employees per physical location

Loan Forgiveness:

• Borrowers of a PPP second draw loan would be eligible for loan forgiveness equal to the sum of their payroll costs, as well as covered mortgage, rent, and utility payments, covered operations expenditures, covered property damage costs, covered supplier costs, and covered worker protection expenditures incurred during the covered period. The 60/40 cost allocation between payroll and non-payroll costs in order to receive full forgiveness will continue to apply.
• Increased transparency and accountability in SBA programs; emergency enhancements in SBA’s lending program
• Increased ability for PPP Borrowers to Request an Increase in Loan Amount Due to Updated Regulations
• Calculation of Maximum Loan Amount for Farmers and Ranchers under the PPP
• Added Eligibility and Guidelines for:

COVID Related Tax Relief Act of 2020

• Refundable tax credit in the amount of $600 per eligible family member. The credit is $600 per taxpayer* ($1,200 for married filing jointly), in addition to $600 per qualifying child. The credit phases out starting at $75,000 of modified adjusted gross income ($112,500 for heads of household and $150,000 for married filing jointly) at a rate of $5 per $100 of additional income.
  *Note: $600 amount subject to change pending further action by Senate.
• Advance payments based on the information on 2019 tax returns. ​ In general, taxpayers without an eligible social security number are not eligible for the payment.
• Other Provisions:

Unemployment Assistance COVID Extension Provisions

• Temporarily extend a number of unemployment programs created by CARES Act that expire Dec. 31, 2020
• Provides unemployed individuals an additional $300 per week for 10 weeks from December 26, 2020-March 14, 2021 (under the program called Federal Pandemic Unemployment Compensation (FPUC))
• Extends and phases-out Pandemic Unemployment Assistance (PUA) which is a temporary federal program covering self-employed and gig workers, to March 14 (after which no new applicants) through April 5, 2021
• Allows people who are getting benefits as of March 14 to stay on 3 additional weeks before their benefits are cut off
• Increases the number of weeks available in PUA from 39 to 50 to cover people who have almost used up all their benefits however all benefits end April 5, 2021
• Extends all other Unemployment Insurance (UI) provisions to March 14, including interest-free loans to states to keep their unemployment-insurance trust funds in shape, flexible staffing for states, and UI relief for non-profit organizations
• Adds program integrity provisions to combat fraud and abuse in the unemployment programs.
• Includes your Return to Work reporting requirements

Rental Assistance ($25B)

• First-ever emergency federal rental assistance program to be distributed by state and local governments.