Early Wednesday morning, Senate leaders agreed to a $2 trillion emergency relief package in response to COVID-19. This bipartisan legislation will assist millions of businesses and Americans during this uncertain time in the nation’s economy. Below are highlights of the stimulus package including allocations for stimulus checks to many Americans, a loan program for small businesses, and a lending fund for industries, cities, and states.
- Delay of employer payroll taxes
- Relaxes limits on use of net operating losses covering a three-year period
- Expands to 50% the business interest deduction
- $150 billion directed toward states as they face budget shortfalls and gaps due to the coronavirus pandemic
- $500 billion for loans to distressed companies
Funding for Critical Businesses
- $50 billion in loans or loan guarantees to passenger air carriers
- $8 billion for cargo air carriers
- $17 billion for companies deemed “important to maintaining national security”
- Temporary guarantee for money market mutual funds with taxpayer dollars
Funding for Small Businesses
- Allocated $350 billion for small business loans through the Small Business Administration’s loan program
- The SBA will serve as a guarantor for loans up to $10 million for payroll and debt obligations
- Eligibility for loans would be defined as a small business or veterans organization with fewer than 500 employees
- Sole proprietors, independent contractors and self-employed would be eligible
Relief for Individuals
- Allocates $250 billion for direct payments to individuals and families
- Direct payments to lower- and middle-income Americans of $1,200 for each adult, as well as $500 for each child.
- The payments would decrease for those making more than $75,000 with an income cap of $99,000 per individual or $198,000 for couples
- Allows for a 4-month expansion of unemployment benefits, increasing the overall benefit by $600 a week over that period
- Jobless benefits would extend to the self-employed, gig workers, furloughed employees, and freelancers that are currently unemployed due to the pandemic
- Provides for $100 billion in grants to hospitals and health systems
- Billions more are provided for protective equipment for medical workers, ventilators for patients, testing supplies and new construction to house patients
- $10.5 billion for vaccine development, therapeutics diagnostics and other preparedness
Additional Emergency Funding
- $4.5 billion for the CDC
- $20 billion for the VA
- $5 billion for FEMA
- $10 billion for Airports
- $1.7 billion for the national strategic stockpile
- $25 billion for emergency public transportation relief
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This publication is for general information only. It is not legal advice, and legal counsel should be contacted before any action is taken that might be influenced by this publication.
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