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NEW Stimulus Bill Signed Into Law!

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Tax Advisory: U.S. Federal

On December 20th, Congress finally came to an agreement on a new stimulus bill for individuals and small businesses. 

Here is a summary of the significant updates contained in the bill voted on by Congress:

  • A second round of stimulus checks for individuals
  • An extension on the Federal unemployment benefits at $300 a week for 11 more weeks
  • An additional $284 billion in Paycheck Protection Program “Round 2”
  • Business taxpayers will be eligible for a second PPP loan if they have 300 or fewer employees and had revenue loss of 30 percent in any quarter in 2020
  • Local chambers of commerce will be eligible for PPP loans
  • The new changes will attempt to ensure that the smallest businesses and underserved communities have the opportunity to receive the new PPP loans
  • The types of expenses that PPP loans can be used for and be forgiven will be expanded to include other items
  • There will be a simplified loan forgiveness process for businesses that receive loans of $150,000 or less
  • Most importantly, the expenses paid with PPP loan proceeds will be tax deductible and the PPP loan will continue to be tax-free

There are still some steps needed before the bill is written into law and if you have any questions you should consult with your Jones & Roth tax advisor.

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