Updated: 12/29/2020, 4:00pm ETA
The new Covid Relief Package is set to provide additional financial assistance to Americans. The hefty bill was passed by Congress Monday night 12/21/2020.
President Trump reluctantly signed the bill days later on Sunday 12/27/2020, allowing $600 stimulus payments to be distributed, but urged that Americans should receive more aid and proposed $2,000 stimulus payments instead.
For now, the $600 Stimulus check is approved and checks are already being delivered to the eligible parties (see bill highlights for more details on eligibility). As for the additional $1,400, the Senate will continue to battle it out.
As we wait for the final say on stimulus payments, overall the Covid-Relief Package is still great news for small businesses, especially those with SBA loans and grants, such as the PPP and EIDL.
Bill Highlights:
- Business expenses paid with the PPP loan funds are now tax deductible. (Applies to all borrowers even those who already applied or received forgiveness).
- PPP Round 2: PPP funding will be available again. This is for those who were not able to get a bite the first time around as well as businesses who already received a loan and used all loan funds. (Past recipients must show revenue as down compared to last year).
- Streamlined PPP Forgiveness for loans under 150k – (Submit 1 page online or paper form).
- If not already applied for PPP Forgiveness, you have new eligible expenses for forgiveness.
- Final forgiveness amount will no longer be reduced by any EIDL grant received.
- The EIDL is no longer taxable and expenses remain deductible.
- The relief package also included additional unemployment funding and another stimulus check to go out (additional $300 in unemployment for 11 weeks, $600 stimulus check to individuals making less than $75,000 a year, $1200 for married couples filing jointly making under $150k, plus $600 for each dependent child under 17.)
