Below is a summary of the U.S. Government’s 8-part COVID-19 relief package. For a detailed overview, click HERE to read the extended summary on the National Conference of State Legislatures website. 

 

Small Business Provision

  • Provides $325 billion in small business funds.
    • $284.5 billion for first and second forgivable Paycheck Protection Program (PPP) loans.
      • A small business can receive a second PPP loan if they have less than 300 employees and can demonstrate a revenue reduction of 25%.
      • Maximum loan amount reduced to $2 million.
    • $20 billion for new Economic Injury Disaster Loan Grants for businesses in low-income communities.
    • $15 billion in funding for live venues, independent movie theaters, and cultural institutions.
    • $3.5 billion for continued Small Business Administration debt relief payments.
    • $2 billion for enhancements to Small Business Administration lending.
  • Businesses that received PPP loans would be able to take tax deductions for the expenses covered by forgiven loans.
  • Expands PPP eligibility for 501 (C)(6) nonprofits, including local newspapers, radio, and television broadcasters, and destination marketing organizations.
  • Provides $12 billion for Community Development Financial Institutions and Minority Depository Institutions that provide credit and financial services to low-income and minority communities.

 

Direct Payment to Citizens

  • Direct economic relief via stimulus checks of $600 for individuals making up to $75,000 per year. $1,200 for couples making up to $150,000, and an extra $600 for dependent children that are under 17 years old.
  • It would apply the similar income limits and phase-out as the CARES Act, reducing the payments by 5% for individuals with adjusted gross incomes of more than $75,000. Filers with an adjusted gross income (AGI) greater than $87,000 (or $174,000 if filed jointly) would not receive a payment.
  • Payments would be based on 2019 taxes. Payments could be issued for certain beneficiaries who did not file 2019 returns, including retired and disabled workers, Supplemental Security Income recipients, and veterans receiving VA benefits.

 

Expanded Unemployment Benefits

  • Provides $120 billion in unemployment insurance (UI).
  • Extends the Federal Pandemic unemployment Compensation (FPUC) program through March 14, 2021, providing $300 per week for all workers receiving unemployment benefits.
  • Extends and phases out the Pandemic Unemployment Assistance (PUA) to March 14 (after which no new applicants) through April 5, 2021.
  • Extends and phases out the Pandemic Emergency Unemployment Compensation (PEUC), which provides additional weeks when state unemployment runs out, to March 14 (after which no new applications) through April 5, 2021.
    • Provides additional weeks for those who would otherwise exhaust benefits by increasing weeks available from 13 to 24–with all benefits ending April 5, 2021.
  • Increases the maximum number of weeks an individual may claim benefits through regular state unemployment with the additional PEUC program, or through the PUA program, to 50 weeks.
  • Provides an additional $100 per week for certain workers who have both wage and self-employment income but whose UI benefit calculation does not take their self-employment into account.
  • Extends the interest-free loans to states, flexible staffing and nonprofit relief to March 14, 2021.
  • Requires documentation of employment, rather than the self-certification that is currently in use and requires states to verify applicant identity.
  • Requires states to have a place to report when someone turns down a job and must notify claimants of the requirement to accept suitable work.

States may opt to provide an extra benefit of $100 per week for up to 11 weeks through March 14, 2021, for certain workers who have both wage and at least $5,000 of self-employment income in most recent taxable year ending prior to application.

 

To learn more, visit https://www.ncsl.org.