There are four main titles within the 500-page Senate bill.
You can see a more detailed description of what is included in each the sections in AHLA's
Comprehensive Summary of COVID-19 Congressional Packages
, but below are some of the topline provisions that most impact the hotel industry and our members.
Title 1. Keeping American worker paid and employed Act: SBA Loan Program
- $350 billion in loan forgiveness grants to small businesses and non-profits to maintain existing workforce and help pay for other expenses like rent, mortgage, and utilities.
- $10 billion for SBA emergency grants of up to $10,000 to provide immediate relief for small business operating costs.
- $17 billion for SBA to cover 6 months of payments for small businesses with existing SBA loans.
- Hotel Language: AHLA secured language which waives affiliation rules and provides for eligibility to be determined by physical location or property instead of being aggregated to the employer.
Title 2. Assistance for America's workers, Families and Businesses: Expanded Unemployment Insurance, Tax Rebates and Business Tax Provisions
Individuals:
- Creation of temporary Pandemic Unemployment Assistance Program
- All U.S. residents with adjusted gross income up to $75,000 ($150,000 married), who are not a dependent of another taxpayer and have a work eligible social security number, are eligible for the full $1,200 ($2,400 married) check, plus an additional $500 per child.
- Example: a family of 4 could receive up to $3,400
Tax provisions:
- Delay of estimated tax payments for corporations until October 15, 2020.
- Defers Payroll Tax payment; half paid on Dec 31, 2021 and other half on Dec 31, 2022.
- 5 year carry back for Net Operating Losses (Includes special treatment for REITS)
- Increases Section 163j business expensing from 30% limitation to 50% of taxable income for 2019 and 2020.
- Employee Retention Credit - The provision provides a refundable payroll tax credit for 50 percent of wages paid by employers to employees during the COVID-19 crisis.
- Qualified Improvement Property Fix – allows for immediate expensing for qualified improvements to property.
Title 3. Supporting America's Health Care System in the fight against the Coronavirus: Funding for Hospitals, health care facilities and providers
Labor Provisions:
- Paid Leave for Rehired Employees: Allows an employee who was laid off by an employer March 1, 2020, or later to have access to paid family and medical leave in certain instances if they are rehired by the employer.
- Advance Refunding of Credits: Allows employers to receive an advance tax credit from Treasury instead of having to be reimbursed on the back end.
Title 4. Economic Stabilization and Assistance to Severely Distressed Sectors of the American Economy: Funding for Impacted Industries including Hotels
- Defines an "Eligible Business" as a United States business that has not otherwise received adequate economic relief in the form of loans or loan guarantees provided under this Act.
Emergency Relief for Impacted Industries
-
Provides $500 billion to Treasury's Exchange Stabilization Fund
to provide loans, loan guarantees, and other investments, distributed as follows:
- $25 billion for air carriers; $4 billion for cargo carriers; $17 billion for businesses important to maintaining national security
- $454 billion in support of the Federal Reserve's lending facilities to eligible businesses including hotels
