Very late on Monday night, December 21, both the House of Representatives and Senate passed the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, and is awaiting signature by the President of the United States. This legislation provides for:
Tax deductibility of PPP expenses
Paycheck Protection Program (PPP) 2.0
Borrower-favorable modifications to existing PPP loans
Refunding of EIDL Advance program
Extension to payback of deferred payroll taxes claimed under President Trump’s executive order
$600 direct payment checks per adult and child, if below $75,000 ($150,000 MFJ) income threshold
$300 per week enhance unemployment insurance benefit
100% meals tax deduction as long as the expense is for food or beverages provided by a restaurant
Effective for calendar years 2021 and 2022
Please click this link or visit our website for a detailed explanation of the major stimulus provisions for businesses as part of this legislation.
Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (“Act”)
On Monday night, December 21, Congress passed additional personal and business relief measures tacked onto the federal government’s fiscal spending bill, paving the way for a second round of Paycheck Protection loans (PPP2) and modifications to the original Paycheck Protection loan program (PPP1) that was enacted in March as part of the CARES Act.
Below is a summary of the key provisions of the stimulus portion of the Act (which is over 5,000 pages).
PPP1 and PPP2 Tax Deductibility