Congress and the Trump administration recently approved another round of federal stimulus to aid small businesses impacted by COVID-19. The measure, H.R. 133, is a $2.3 trillion spending bill that includes $900 billion in COVID-19 relief funds.
For small business owners, here is a partial breakdown of the $900 billion relief package:
- An additional $284 billion total is allocated to the U.S. Small Business Administration’s Paycheck Protection Program (PPP):
- $15 billion is specifically provided for loans made by insured depository institutions and credit unions that have consolidated assets less than $10 billion;
- Nonprofit 501 (c)(6) organizations are eligible to receive PPP funds under certain conditions; and
- A small business may receive a second PPP loan if the small business has less than 300 employees and can demonstrate a revenue reduction of 25%.
- An additional $20 billion is allocated to the Economic Injury Disaster Loan (EIDL) emergency advance program. Eligibility and award maximums remain the same pursuant to the conditions set forth in Phase 3.
- Existing EIDL recipients that received less than $10,000 may reapply for EIDL funds, but the maximum amount remains at $10,000.
- The Employee Retention Tax Credit (ERTC) is extended and expanded through June 30, 2021. Revisions to the ERTC include:
- Increases the credit rate from 50% to 70% of qualified wages;
- Increases the limit on per-employee creditable wages from $10,000 for the year to $10,000 for each quarter; and
- Increases the 100-employee delineation for determining the relevant qualified wage base to employers with 500 or fewer employees.
- Full deduction for business meals provides a 100 percent (increase from 50 percent) deduction for business meal food and beverage expenses provided by a restaurant that are incurred in 2021 and 2022.
SIA will continue to provide resources on future stimulus efforts that aid small business owners impacted by COVID-19.