7 Big Takeaways On The New Covid Relief Package

7-big-takeaways-from-new-covid-relief-package
7-big-takeaways-from-new-covid-relief-package

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.)

SHARE THIS ARTICLE

Share on facebook
Share on twitter
Share on linkedin
Share on email

DOWNLOAD “5 THINGS THAT ARE CUTTING INTO YOUR PROFITS RIGHT NOW”

Are you hurting your business by cutting into your own profits? Enter your name and email below to find out.

DOWNLOAD “5 THINGS THAT ARE CUTTING INTO YOUR PROFITS RIGHT NOW”

Are you hurting your business by cutting into your own profits? Enter your name and email below to find out.