Congress is negotiating a new $1 trillion economic stimulus package to help millions of Americans and businesses keep afloat during the continued COVID-19 crisis. Among a host of other benefits, Congress has unveiled the following proposed benefits to help businesses hit hardest by the pandemic:
- A second round of Paycheck Protection Program loans aimed towards aiding small business recover from lost revenue. The second round includes granting the flexibility to forgive money used for operational and supplier costs.
- Implementing liability protections to create safe harbor for businesses, nonprofits, schools, and health care providers.
- Deductions for employer purchases for COVID-19 testing, Personal Protective Equipment (PPE), and other supplies.
- Increased business meal deductions to 100% from the previous rate of 50%.
- Enhanced employee retention tax credit.
- Increased flexibility and time window for states to utilize CARES Act funds distributed from the first relief package.
- Extension of the federal eviction moratorium.
- An additional $105 billion in education funds.
- Some form of an extension to the federal enhanced unemployment benefit reducing the benefit to $200 until states can implement an online program with a formula designed to provide approximately 70% wage replacement for laid off workers.
Congress is expected to finalize the relief package details in the coming days. If you have any questions regarding how you or your business can benefit from the federal stimulus package, reach out to a BrownWinick attorney.