We hope you all are staying safe and positive and enjoying the holidays as this wild year comes to an end. Congress has passed another round of relief in the amount of $900 billion. Bolded below is what has been updated since our previous e-mail.
As of now, the bill to raise stimulus checks to $2,000 per person has not been passed.
- Each individual will receive $600, including children. For example, a family of four would receive $2,400, up to a certain income threshold.
- Individuals filing single with 2019 income up to $75,000; individuals filing head of household with 2019 income up to $112,500; couples filing jointly with 2019 income up to $150,000 will receive the entire $600 per person.
- The amount of relief received then reduces by 5% of every dollar of income over these limits.
- Individuals filing single with 2019 income of $87,000 or more; individuals filing head of household with 2019 income $118,125 or more; couples filing jointly with 2019 income $174,000 or more will not receive any sort of relief.
- Unemployment benefits will be extended up to $300 per week.
- Unemployment benefits for contract and gig workers, which were set to expire at the end of the year, will be extended as well.
Relief for Business
- The bill includes more than $284 billion for first and second forgivable PPP loans, expanded PPP eligibility for nonprofit organizations and news outlets, and modifications to the program to serve small businesses, nonprofits, and independent restaurants.
- Businesses that received the PPP loans and had them forgiven will be allowed to deduct the costs covered by those loans on their federal tax returns, an issue that was up in the air for some time.
- Subsequent PPP Loans of up to $2 million are available for organizations that can prove revenue declines of 25 percent or more in any quarter of 2020 compared to the same quarter of 2019.
- Each borrower is limited to two (2) PPP Loans total
- Accommodation and food service businesses could be eligible for up to 3.5 times their monthly payroll costs (all other industries can receive up to 2.5 times).
- Forgivable expenses have expanded to supplier costs and investments in facility modifications and personal protective equipment to operate safely per COVID-19 restrictions.
- Borrowers that have already received a PPP Loan may be able to seek an increase in the original loan amount to cover these new forgivable expenses, this would not be considered a second-draw loan.
- Loan applications must be filed by March 31, 2021
- We encourage you to contact your lender as soon as possible, as funds are limited and will likely run out.
- Tax exclusion for employer student loan repayment benefits are extended to 2025
- It also includes $20 billion for targeted grants through the Economic Injury Disaster Loans program.
- A tax write-off of 100 percent of business meal expenses, instead of up to 50 percent, is secured.
Emergency Rental Assistance and Eviction Moratoriums
- A moratorium on evictions that was slated to expire at the end of the year will be extended until January 31; this may be extended further.
- It includes $25 billion in emergency assistance to renters, although it remains unclear how the funds will be distributed.