Congress Agrees on a New Stimulus Bill
Congressional leaders reached an agreement Sunday on a new Stimulus Bill, providing assistance to Americans and businesses due to the COVID-19 pandemic. Both chambers are expected to vote on the new Bill today, and the full legislative text is expected soon.
It is reported that the following items are included in the legislation:
- Full deductibility of Payroll Protection Program (PPP) loan costs, effectively reversing the IRS’s position on this matter.
- A new round of PPP loans for the hardest hit businesses. Businesses with revenue reductions above a certain benchmark will be eligible for a second PPP loan even if they already received one earlier in the year. The most recent proposal required revenue reductions of 30% or more in any quarter of 2020, as compared to 2019, and 300 or less employees, in order to be eligible. We are still waiting for confirmation that this is where the final agreement settled.
- Direct payments of $600 to Americans who made less than $75,000 in 2019, or couples who made less than $150,000. An additional $600 will also be received for dependent children.
- A $300 per week enhancement in unemployment benefits for 11 weeks.
We will keep you updated as we learn more.