House Democrats Introduce Phase 4 COVID-19 Relief Bill
Yesterday, House Democratic leaders introduced H.R. 6800, the Heroes Act, which provides more than $3 trillion in COVID-19 relief funding for individuals, businesses, and state and local governments. The bill is expected to receive a vote in the House on Friday. The House legislation was crafted largely along partisan lines and is not expected to receive a vote in the Republican-controlled Senate without significant changes to the bill. The text of the legislation can be found here and a section-by-section summary here. A detailed summary of the small business provisions can be foundhereand here.
NLBMDA recently sent a letter to the White House and Congress which included a list priorities important to the lumber and building material (LBM) industry as they continue to negotiate a “Phase 4” relief package. NLBMDA has also created a grassroots action alert that allows members to contact their Representative and Senators in support of these priorities.
Summary of notable provisions for the LBM industry in H.R. 6800, the Heroes Act:
Expands Paycheck Protection Program(PPP) eligibility to 501(c)(6) organizations;
Reverses IRS guidance to allow for the deductibility of PPP and other small business loan expenses;
Creates a carve out of 25% for PPP funds to be used specifically for small businesses with 10 or fewer employees;
Adds flexibility in the covered period for PPP borrowers by extending the 8-week period to 24 weeks and extends the covered period from June 30 to December 31;
Removes the requirement that 75% of PPP loan proceeds be used for payroll;
Ensures the principal and interest of PPP loan assistance is not treated as taxable income to small business borrowers;
Includes $10 billion for COVID-19 emergency grants through the Economic Injury Disaster Loan (EIDL) program;
Mandates that the Federal Reserve, through the Main Street Lending Program, provide at least one low-cost loan option that small businesses and small non-profits are eligible for that does not have a minimum loan size, overriding the current $500,000 minimum loan size to participate in the program;
Expands the existing Employee Retention Tax Credit;
Provides a 50% refundable payroll tax credit for qualified fixed costs for employers subject to closure by reason of COVID-19;
Requires OSHA to issue an enforceable standard within seven days to require all workplaces to develop and implement infection control plans based on CDC expertise, and prevents employers from retaliating against workers who report infection control problems;
Extends the weekly $600 federal unemployment payment increase through January 31, 2021;
Provides $200 billion in hazard pay for essential workers; and
Provides additional economic impact payments of $1,200 per family member, up to $6,000 per household.
For any questions, please contact Director of Government Affairs Kevin McKenney at email@example.com.