· Forgivable payroll protection loans for small businesses of 500 people or less. It looks like the loan will cover up to 2.5 months of payroll (including typical benefits), rent/mortgage, utilities and certain other debt.
· If employers maintain their payroll, which according to our reading would be based on the average number of employees for January and February 2020, and comparing that to the covered period of the Act.
· There are some salary limits in the bill for employees making more than $100,000 annually.
· The maximum loan is $10 million.
· Payments (on loans not forgiven) can be deferred for up to a year.
· We believe this section would also apply to self-employed individuals, and gig economy workers.
· The Act also allows employers to DEFER social security payroll taxes. Half deferred until December 31, 2021 and the other half until December 31, 2022.
· The SBA will increase the limit of their Express Loans from $350,000 to $1 million to help provide additional working capital to businesses.
· There is a refundable payroll tax credit for all employers whose operations were fully or partially shut down by COVID-19 or gross receipts declined by more than 50%.
For Individuals and Employees:
· $1,200 direct payments to Americans plus $500 per dependent child. Individuals making more than $75,000 ($150,000 married filing jointly) will see a reduction in the amount. We believe it would phase out completely at $99,000 for an individual (reduced by $5 for every $100 above the threshold). Although not explicit, one of our questions is whether or not this money is taxable income for next year's taxes?
· No action will be required of individuals. It will be based off of your 2019 taxes (if filed) or 2018 return.
· The money is expected to be delivered by April 6.
· One of the more controversial sections of the bill is the increased unemployment benefit of $600 per week. This is in addition to the existing state limit ($440 per week we believe). The controversy is whether or not it will be more lucrative for someone to take unemployment instead of an existing pay rate if their job reopens. This added benefit will apply for up to 4 months.
· The overall unemployment benefits will be extended 13 weeks beyond the current limit.