NEW Stimulus Bill Signed Into Law!
Filed under: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.