Congress Passes Long-Awaited Relief Bill
$900 billion package includes critical funding and policy changes to help small businesses and nonprofits recover from the pandemic.
Congress has passed and President Donald Trump is expected to sign a $900 billion coronavirus relief package. The legislation includes a $300 weekly unemployment supplement, $600 direct payments and nearly $300 billion in Paycheck Protection program loans.
When will I get my EIP (Stimulus Check)?
Checks are supposed to be produced quickly, and according to Secretary Mnuchin, those that qualify could start seeing checks as early as next week.
How big will my check be?
Checks will be $600 per person – or $1,200 for married couples filing jointly with an additional $600 per child. The checks will have similar income limits and phaseouts to the first round of stimulus checks.
Is there a new Paycheck Protection Program (PPP2)?
Small businesses can receive a 2nd PPP loan if they have less than 300 employees and can demonstrate a revenue reduction of greater than 25%.
The maximum amount of the loan is $2 Million.
What if I didn’t apply for the first PPP loan?
Businesses that missed the first round of PPP can apply under the new Act.
What happened with loan forgiveness?
The threshold for simplified forgiveness has been increased from $50,000 to $150,000.
For loans below $150,000 the borrower sign and submits a 1 page certification of the loan amount, number of employees retained and estimated total amount of loan spend on payroll costs.
Can I deduct payroll expenses?
The original act excluded proceeds from PPP loans from taxable income. The new act clarifies small business can deduct the expenses paid with the PPP funds.
What if I received an EIDL advance?
The previous guidance that required deduction of EIDL Advance Grant from PPP loan forgiveness has been repealed.
What should I do now?
It will take time for the SBA to provide guidelines to lending institutions (10 days are allotted per the act). You will need to determine when your financial institution will be ready to accept PPP2 applications. You should review 2020 quarterly revenue to determine if you had a 25% or greater reduction in revenue compared to the same quarter in 2019.
Need help understanding which program is right for you?
KRS professionals are available and happy to assist with these programs and questions. Visit the KRS Coronavirus Resources Page for additional information. Please contact us if you have any questions, concerns, or need advisement during this unprecedented time.