The following are a few key takeaways:
1.Small Business Loan Interruption Program - $350 Billion
- Paycheck Protection Program (PPP) - provide small businesses and other entities with zero-fee loans of up to $10 million
i. Up to 8 weeks of average payroll and other costs will be forgiven if the business retains its employees and their salary levels
ii. Principal and interest is deferred for up to a year and all borrower fees are waived
2.Debt Relief for Existing SBA Borrowers - SBA will cover all loan payments for existing SBA borrowers, including principal, interest, and fees, for six months
i. This relief will also be available to new borrowers who take out an SBA loan within six months after the President signs the bill
2.Unemployment Insurance Expansion - $250+ billion
- Unemployment Benefits for More Americans: Makes sure self-employed and independent contractors, like Uber drivers and gig workers, can receive unemployment during the public health emergency
i. The bill also includes support to state and local governments and nonprofits so they can pay unemployment to their employees.
2.Adds a $600/week across-the-board payment increase through the end of July
i. In addition, for those who need it, the bill provides an additional 13 weeks of benefits beyond what states typically allow.
3.Direct Cash Assistance for Americans - $250 billion
- Provides one-time $1,200 checks to many Americans, with an additional $500 per child
i. Phases out at various income levels; $75,000 annually for single filers and $150,000 for joint filers
ii. Maximum income levels are $99,000 for single filers and $198,000 for joint filers
- Student Loan Relief - Cancels payments for all federal student loan borrowers with federally-held loans (Direct Loans and FFEL loans that are held by the U.S. Department of Education) through September 30, 2020, meaning such borrowers will not be required to make any payments toward outstanding interest or principal.
- Pell Grants - For students who dropped out of school as a result of COVID-19, excludes the term from counting toward lifetime Pell eligibility.
5.Business Tax Provisions
- Advance of Paid Leave Tax Credit - Makes the refundable tax credit provided for in the second package able to be an advanced refundable tax credit instead of having to be reimbursed to employers on the back end of providing paid leave to employees.
- Employee Retention Credit - Employers of all sizes that face closure orders or suffer economic hardship due to the coronavirus crisis that continue to pay employees that are furloughed may be eligible for a 50% credit on up to $10,000 of wages paid to those employees.
- Delays Payroll Tax Payments for Employers - Employers would be able to delay the payment of their 2020 payroll taxes until 2021 and 2022, leading to approximately $300 billion of extra cash flow for businesses.
- Restores Supports for Businesses Suffering Losses: The bill also allows businesses to carry back losses from 2018, 2019, and 2020 to the previous 5 years, which will allow businesses access to immediate tax refunds
- Temporary Income Exclusion for Certain Employer Payments of Student Loans - Excludes from the employee’s income for 2020 the first $5,250 of employer payments of an employee’s student loans.
- Modification of the Limitation on Business Interest Expense - Increases the limitation on the deductibility of business interest expense from 30% of EBITDA to 50% of EBITDA for 2019 and 2020.
6.Emergency Federal Appropriations - $300+ billion
- Department of Labor
i. $345 million for Dislocated Worker National Reserve (available through September 2022)
.Department of Education
i. $30.750 billion for an Education Stabilization Fund for states, school districts and institutions of higher education for costs related to coronavirus.
.Department of Veterans Affairs
i.$3.1 billion for VA to purchase, staff, and equip temporary sites of care