Key Takeaways From the Latest COVID-19 Relief Bill, Including PPP2
As you read, remember that our team at Blue Fox is happy to answer questions, provide assistance with PPP applications and forgiveness, and help your organization navigate the pandemic’s financial challenges.
On December 21st, the U.S. Senate and House of Representatives passed the $900 billion COVID-19 relief bill: Consolidated Appropriations Act, 2021. [Warning: it’s 5,593 pages… speed readers only!]
So, what does it mean for you?
Here is a brief recap of the key takeaways, as summarized by the Journal of Accountancy. (Yes, we summarized a summary, just for you.)
Key takeaways for individuals and self-employed:
The Bill:
Provides $600 for individuals making up to $75,000 per year and $1,200 for married couples making up to $150,000 per year, as well as a $600 payment for each child dependent.
Extends the Pandemic Unemployment Assistance (PUA) program, with expanded coverage to the self-employed, gig workers, and others in nontraditional employment.
Extends PPP Loans to sole proprietors, independent contractors, and eligible self-employed individuals.
Key takeaways for small business, nonprofits, not-for-profits:
The Bill:
Extends PPP loans to 501(c)(6) not-for-profit organizations (churches, chambers of commerce, business leagues, etc.) for the first time provided they have 300 or fewer employees and do not receive more than 15% of receipts from lobbying.
Allows previous PPP recipients to apply for another loan of up to $2 million if they have 300 or fewer employees, have used or will use the full amount of the first PPP loan and can show a 25% gross revenue decline in any 2020 quarter compared with the same quarter in 2019.
Specifies that business expenses paid with forgiven PPP loans are tax-deductible. (Huge good news!)
Temporarily allows a 100% business expense deduction for meals (rather than the current 50%) as long as the expense is for food or beverages provided by a restaurant. Applies to expenses incurred Dec. 31, 2020 through the end of 2022.
Simplified Application
The new COVID-19 relief bill also:
Creates a simplified forgiveness application process for loans of $150,000 or less.
Repeals the requirement that PPP borrowers deduct the amount of any EIDL advance from their PPP forgiveness amount.
Includes set-asides to support first and second-time PPP borrowers with 10 or fewer employees, first-time PPP borrowers that have recently been made eligible, and for loans made by community lenders.
For more details read: COVID-19 relief bill addresses key PPP issues by Journal of Accountancy or visit U.S. Small Business Association PPP Resource Page.
Or, Just Ask Blue Fox For Help!
Our team is happy to answer questions, provide assistance with PPP applications and forgiveness, and help your organization navigate the pandemic’s financial challenges. Give us a call at (321) 233-3311, schedule a phone call, or email hello@yourbluefox.com.
