Late on December 21, the United States House of Representatives and then U.S. Senate passed the Omnibus Appropriations and Emergency Coronavirus Relief Act (House Resolution 133) by an overwhelming majority in both Congressional chambers, appropriating another $900 billion in financial assistance to small businesses—including chambers of commerce, trade association and other 501(c)(6) not-for-profit organizations—unemployed workers and individual income taxpayers. President Donald J. Trump is expected to sign the legislation.
This short-term federal relief package expands Paycheck Protection Program (PPP) forgivable loan eligibility to include chambers of commerce, trade association and other 501(c)(6) not-for-profit organizations and provides assistance to the struggling hospitality industry.
Of the $325 billion appropriation for small businesses, $284 billion is for first and second rounds of PPP loans and increases individual loans from 250 percent to 350 percent of average monthly payroll for restaurants and hotels. The cost of Personal Protective Equipment (PPE) is new as an allowable PPP expense.
Based on previous application requirements, the Elmhurst Chamber of Commerce and Industry will now be eligible for some $47,500 in PPP funding. ECCI has remained open for business since the start of the COVID-19 Pandemic, and no full-time or part-time staff members were furloughed or fired, so all PPP loan monies should qualify as forgivable.
The relief package also contains many top business-related priorities, including:
- Simplified PPP loan forgiveness application for loans under $150,000;
- Ability to deduct expenses paid for with forgivable PPP loans;
- One-year extension for Troubled Debt Restructuring (TDR) relief (Section 4013 of the CARES Act).
- Allows banks to continue to work with borrowers to gain additional forbearance and debt relief through 2021;
- 100 percent business meal deductibility for 2021 and 2022;
- Expanded and enhanced Employee Retention Tax Credit;
- Five-year extension of the Workforce Opportunity Tax Credit (WOTC)
The relief package also contains support for individual income taxpayers and unemployed workers, including:
- Direct payments to individuals: $600 for an individual making up to $75,000 per year; $1,200 to a couple making $150,000 per year and $600 for each child dependent;
- An additional $300 per week will go to individuals receiving unemployment benefits;
- $25 billion for emergency rental assistance
- Extends the Coronavirus Aid, Relief and Economic Security (CARES) Act’s eviction moratorium until Jan. 31.