President Trump signed the long-awaited COVID relief bill as well as the government spending bill into law Sunday night. After the House and Senate passed the bills last week, Trump delayed signing to ask for last minute changes including an increase in direct stimulus checks and a decrease in government spending. The president indicated he would send Congress items he believes should be removed during the rescission process but Congress would have to vote to approve any changes.
As previously reported by the National Association of Wholesaler-Distributors (NAW), the parts of the relief bil in which NAW members and the overall business community were most interested have all been resolved surprisingly satisfactorily.
Specifically:
- Second draw PPP loans are permitted, provided the business can demonstrate a revenue loss of at least 25%;
- Full deductibility of expenses paid with a PPP loan are restored;
- Additional expenses have been added to those that qualify for PPP loan forgiveness;
- The employee retention tax credit is increased and extended into 2021;
- The barrier between the ERTC and PPP has been removed, so a company can take both the PPP loan and claim the ERTC provided that the funds are not used for the same purpose.
The new legislation would give the Small Business Administration (SBA) only 10 days from enactment of the bill to write rules for the revamped small business rescue provisions.
The short deadline reflects a sense of urgency to get help to struggling employers, but the timeline — over the holidays and in the midst of a presidential transition — raises many concerns.
After the passage of the CARES Act earlier this year, there were dozens of interim rules and updates to agency FAQs that left many struggling employers confused.
Read the full bill or reads summaries/analyses of the legislation from various sources below.
From NAW: Summary of PPP provisions
From Forbes: What Small Business Owners Need To Know About The New Stimulus Package
From the Journal of Accountancy: COVID-19 relief bill addresses key PPP issues
From the Tax Foundation: Congress Reaches a Deal on $900 Billion in Pandemic Relief
From American Action Forum: Major Tax Policy Changes in the Consolidated Appropriations Act
From Littler Law Firm: Congress Set to Approve Additional COVID-19 Relief for Individuals, Small Businesses
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