As the week ends, Congress is still working on the Bipartisan Emergency COVID Relief Act of 2020 with both sides of the aisle agreeing something needs to be done. There is a great deal of belief that some form of a bill with COVID relief will be passed by the middle of December, before the holiday recess for Congress. The main focus of the bill is to provide relief in the form of another round of the Payroll Protection Program (PPP2).
The major points of PPP2 are as follows:
- Proposed $300 billion in funding
- Limited to employers with under 300 employees
- Must have sustained a loss in revenue of 30% in any quarter of 2020
- Membership organizations under IRC 501(c)(6) qualify
The major portion of the bill that will apply to both the first round of PPP and PPP2 will be that all borrowers who obtained PPP funds under $150,000 will be allowed a streamlined process (this is instead of the current $50,000 limit). In addition, under both PPP and PPP2, all of the expenses paid for by the PPP funds would be fully tax deductible, and the PPP amounts forgiven would not be taxable.
There are many other provisions to help other sections of the economy and the professionals at GSG are available to assist in finding ways when the bill is passed that can help you.
Contact us today with any questions or concerns.Categories: Tax, Small Business, COVID-19 Resources