Last night, Congress approved additional COVID-19 relief and appropriated Fiscal Year 2021 spending levels.
This $2.3 trillion package, including $900 billion in coronavirus relief funds and $1.4 trillion to fund the government for FY21, has been negotiated over the past several months, and addresses many key areas:
Paycheck Protection Program (PPP)
- Reopening of the program upon enactment of the bill through March 31, 2021.
- Additional $284 billion in funding.
- Maximum loan amount was decreased from $10 million to $2 million.
- Added more eligible expenses (operations expenses, supplier costs).
- Allows for severely impacted organizations, based on revenue loss and employee count, to apply for a second PPP loan.
- Allows for organizations to deduct expenses they paid for with a PPP loan.
Economic Injury Disaster Loan (EIDL) Program
- Additional $20 billion in funding.
- Ability to reapply if full $10,000 EIDL grant was not awarded.
- Employee Retention Tax Credit (ERTC)
- Allows for an organization to receive both a PPP loan and an ERTC.
- Extends the tax credit through June 30, 2021.
- Increases the value of the credit from 50% to 70%.
Other provisions and funding in the bill include:
- Extension of $300 in pandemic unemployment assistance through March 14, 2021, with a phased-out approach after that date.
- Up to $600 in direct individual payments per adult and per child.
- Extended timeline to spend money allocated to state and local governments through the CARES Act by one year to December 31, 2021.
- Extension of the eviction moratorium for one month to January 21, 2021.
The bill also includes $7 billion for broadband, $45 billion in transportation related assistance, $82 billion for K-12 and higher education, $25 billion for rental assistance, $69 billion for vaccine distribution and contact tracing, and more.
COVID-19 liability protections and additional aid for state and local governments were not included in the bill.