The Consolidated Appropriations Act, 2021
On December 27, 2020 President Trump signed into law the COVID-19 $900 billion relief bill, the Consolidated Appropriations Act, 2021, that Congress passed on December 21,2020.
What does this new legislation do? This legislation adds $300.00 to extended weekly unemployment benefits and provides more than $300 billion in aid for small businesses. It also provides tax deductibility for business expenses paid with forgiven Paycheck Protection Program (PPP) loans, allows 501 (c) (6) not-for profits eligible for loans for the first time, and offers businesses with an opportunity to apply for a second PPP, or now known as PPP2 loan.
What, as of now, are the specifics? While the list below highlights key provisions of the new legislation, it is not an exhaustive list.
- Provides $350 billion for small businesses: $284 billion of which is going to the Small Business Association (SBA) for first and second PPP forgivable small business loans; $20 billion to provide Economic Injury Disaster Loan (EIDL) grants to businesses in low-income communities; $15 billion to cultural institutions and independent movie theaters; and $12 billion to help low-income and minority communities.
- $120 billion to provide the unemployed with $300 per week supplements from Dec. 26, 2020 until March 14, 2021. The bill also extends Pandemic Unemployment Assistance to, amongst others, the self-employed and gig workers.
- $25 billion in emergency rental aid and an extension of the national eviction moratorium until January 31, 2021.
- $45 billion for transportation, including $16 billion for airlines, $14 billion for mass transit; $10 billion for state highways; $1 billion for Amtrak; and $ 2 billion for intercity buses as well as for airports.
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What about further PPP loans for small business?
The PPP2 loans will be available to first time qualified borrowers as well as businesses that previously received a PPP loan.
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For a business that has already received PPP funding, recipients may apply for another loan up to $2 million if:
- They have 300 or fewer employers
- Have used all or will have used the full amount of their first PPP loan
- Show a 25% gross revenue decline in any quarter in 2020 as compared with the same quarter in 2019
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For a business that has not applied for PPP funding, the PPP2 will allow for funding for:
- Businesses with 300 or fewer employees eligible for other SBA 7 (a) loans
- Independent contractors, self-employed individuals, and sole proprietors
- Not for profits
- Accommodations and food service operations with fewer than 300 employees per physical location
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For more information on this, please click here
Should you have any questions about the PPP loan forgiveness or need assistance with your business, kindly call the Weston Title team of professionals at their sister company Oppenheim Law at 954-384-6168 or e-mail them at contactus@oplaw.net.