Second PPP Appears Inevitable With New Stimulus Bill



The last two weeks of the year are suddenly upon us and many are wondering if Congress will be successful in their endeavor to pass a second stimulus package. Businesses across the country, especially those operating in industries where public gathering and in-person interaction are part of the fabric of their service model, are watching the back and forth in Washington closely, as the expanding group of bipartisan lawmakers work to pass legislation by the self-imposed deadline of 12:01 a.m. Friday, December 18.


“There is movement, which is excellent,” president and CEO Erik Asgeirsson said last week. “And the reason why it’s excellent is because we continue to see economic reports that if we don’t do something, millions of jobs are going to be lost.”

201215 PPP2 - News Page TileThere has been even more movement this week which has resulted in a bill that appears to be agreeable to legislators from both sides of the aisle despite not yet having an official name or number. The new bill is tentatively titled the Emergency Coronavirus Relief Act of 2020 (or ECRA, for now), with a price tag of $748 billion, down from the package discussed just days ago which would have cost $908 billion. 

Contained within this package is a $300 billion allocation of funds to the U.S. Small Business Administration, including a call to reauthorize the Paycheck Protection Program (PPP) and its unused $134 billion. The revisited PPP comes complete with a new set of eligibility requirements, the first of which being that businesses with more than 300 employees need not apply. Read our full breakdown below.

Highlights Include:

  • An additional $300B in funds to the U.S. Small Business Administration
  • Second PPP loan available for the “hardest-hit” small businesses
    • Eligibility would be limited to small businesses with 300 or fewer employees that have sustained a 30 percent revenue loss in any quarter of 2020.
    • 501(c)(6) organizations eligible for PPP loans. 501(c)(6) organizations that are not lobbying organizations and have fewer than 150 employees would become eligible for PPP loans.
    • Costs include supplier costs and PPE
  • Business expenses paid for with PPP loans become tax deductible
  • Loan forgiveness for loans under $150K are simplified
  • Funding for independent Live venue operators. Additional funding will be made available to independent live venue operators, such as like movie theaters and museums, affected by stay-at -home orders.
  • Funds set aside for smaller borrowers and underserved communities.

ECRA also includes:

  • Additional $300 a week of federal unemployment insurance
  • $6B for vaccine development and distribution
  • $7B for testing and tracing, directly to states and communities
  • $35B for Health Care providers
  • Continuation of payroll support for transportation funding
  • $10B of childcare stabilization grants
  • $13B for agriculture businesses and fisheries
  • $25B for rental assistance
  • Extension of student loan forbearance
The MICPA and our Special Tax Task Force is following the situation closely and will be providing updates, guidance and tools for members as details unfold. 

Log in to MICPA Connect and ask your questions about the Emergency Coronavirus Relief Act (known now as PPP2) as news about the new stimulus package develops.

Source: MICPA

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