Congress Passes COVID-19 Relief and Stimulus Package

Friday, December 25, 2020

On Monday, December 21, Congress enacted a $900 billion stimulus bundle to assist American staff and companies impacted by COVID-19. The measure represents a last-minute bipartisan settlement by a lame duck Congress to supply much-needed assist as COVID-19 instances proceed to rise throughout the nation. Notably, the invoice doesn’t embody funding to states and native governments, and doesn’t present any legal responsibility protections for companies associated to COVID-19. These are points favored by Democrats and Republicans respectively, and had been dropped within the compromise.

The laws consists of funding for particular person stimulus checks, a restart and enlargement of the favored Paycheck Safety Program (PPP) (together with clarification that enterprise bills paid with PPP mortgage funds are tax deductible), different new and expanded SBA mortgage applications, direct focused funding to sure industries, unemployment compensation program extensions, payroll and different tax credit and deductions. The general laws will take impact when signed, however particular person applications and provisions might have distinctive efficient dates which are separate from the final effectiveness date.

Whereas President Trump has till December 28 to signal the laws into legislation, on Tuesday night, December 22, he known as upon Congress to enact an modification to extend the quantity of funds to people from $600 to $2000. He has additionally expressed discontent with different provisions of the invoice, inflicting some uncertainty as as to if he’ll signal it or power Congress to take additional motion.

Given this uncertainty, we acknowledge that sure provisions of the invoice might change. Nevertheless, we all know that these Congressional stimulus and aid efforts are of nice curiosity to our shoppers, and we are going to proceed to maintain you apprised of any adjustments to the laws and its remaining end result. The next summaries are based mostly on the model of the legislation enacted by Congress on December 21.

For a complete evaluation of those provisions and extra, please see the next Pierce Atwood alerts:

Enterprise and Tax Reduction – together with the PPP, different SBA lending, focused monetary assist to sure industries, and payroll and enterprise tax credit and deductions.

Vitality Funding Stimulus – together with clear power reforms, analysis and improvement, and extension and enhancement of renewable power tax credit.

People, Households and Employees Reduction – together with direct stimulus funds and unemployment applications.

Well being Care Suppliers, Sufferers, COVID-19 Mitigation, and Vaccination – together with further grant cash for suppliers, ending shock medical billing, and extra assist for COVID-19 mitigation.