This special partner communication is dedicated to providing information regarding the fluid situation surrounding the coronavirus and its impact on Sonoma County's tourism and hospitality industries.
December 22, 2020
Congress Passes $900 Billion Stimulus Bill

The long awaited second stimulus bill finally passed in the senate last night, promising supplemental unemployment at $300 a week for 11 weeks, direct payments of $600 to most individuals, and expanded PPP eligibility, among other provisions. Unlike the $2.2 trillion stimulus package passed in March, this bill allows nonprofit and quasi-governmental destination marketing organizations (like Sonoma County Tourism) to be eligible for the Paycheck Protection Program.

The U.S. Travel Association, a fierce advocate for the travel provisions included in this bill, has provided a helpful summary of the travel and tourism based provisions here. We've included some of the especially relevant provisions below.
Highlights include:

  • Second round of PPP loans: Businesses with 300 employees or less and a 25% decline in revenue in any quarter in 2020 may receive a second PPP loan of up to $2 million.

  • Use of Coronavirus Relief Funds extended to December 31, 2021. 

  • $15 billion in grants to concert venues, performing art centers, theaters, and museums (with 500 or less full-time equivalent employees and at least a 25% decline in revenue, among other qualifications). 

  • An extension of the Employee Retention Tax Credit through July 1, 2021.

  • Increases the ERTC credit to 70% of compensation paid to employees, up to $10,000 per quarter per employee for employers experiencing a revenue decline of 20% or more. Under the CARES Act, the credit was worth 50% of compensation, up to $10,000 for the calendar year, for those experiencing at least a 50% decline in revenue.

  • Increases the ETRC threshold for employers to be considered small employers, from those with 100 full-time employees or less to those with up to 500 full-time employees or less. This allows more businesses to utilize the credit even if their employees are working.

  • $35 billion set aside for first-time PPP loan recipients.

  • $2 billion in grants for airports and airport concessionaires: Including $1.75 billion in grants for commercial service airports and $200 million for airport concessionaire relief.

  • Full deductibility of business meal expenses incurred in 2021 and 2022.

  • Allows borrowers to deduct expenses covered by PPP loans from their taxes.
If you’re looking for some light reading, you can peruse the entire 5,593-page bill here.
U.S. Travel's Reaction

U.S. Travel’s President and CEO Roger Dow issued this statement in response to the passage of the relief legislation:

“This legislation is a lifeline for businesses and workers who have been hanging on by a thread. More than four million travel jobs have been lost this year, and this package includes long-needed provisions to help employers keep their lights on—a second draw on PPP funds for the hardest-hit businesses, eligibility for non-profit destination marketing organizations, assistance to airports and concessionaires as well as airlines, and enhancements to the Employee Retention Tax Credit, among many others.

… Hopefully now that this challenging legislative step has been overcome, we can head into the next Congress with momentum for further substantive measures to rejuvenate businesses and jobs.”

You can read Roger Dow’s statement in its entirety here.
Sonoma County Tourism Holiday Hiatus 

Please note that Sonoma County Tourism will be closed for the holidays beginning Thursday, Dec. 24 at noon. We will reopen on Monday, Jan 4.