Biometric technology is being utilized more fully in employment, banking, and security screenings and can…
UPDATE: The Consolidated Appropriations Act, 2021 was signed by President Trump on December 27, 2020.
Nearly 9 months after the CARES Act was signed into law, Congress has agreed on a new federal stimulus package that is likely to be signed by President Trump, though he has voiced concerns over some aspects of the bill. The Consolidated Appropriations Act, 2021, which includes $900 billion for coronavirus relief, provides direct payments to individuals and much-needed support to businesses. This bill also addresses spending related to transportation and schools, but we have broken down the highlights related to COVID-19 relief.
Paycheck Protection Program
Roughly $284 billion has been allocated to the Paycheck Protection Program for additional loans. In order to receive funds or additional funds, businesses must be able to show a revenue reduction of at least 25% as a result of the coronavirus pandemic. Funds are now allowed to be used for operational costs in addition to payroll and rent expenses. Additionally, Congress clarified that PPP loans are tax deductible.
SBA Economic Injury Disaster Loan Advance Grants
An additional $20 million as been allocated to this emergency grant. You will recall from our update about the CARES Act, businesses could receive up to $10,000 depending on certain factors. Small businesses can reapply to receive the difference. If you receive another PPP loan, this amount will not be reduced by the grant as was done previously.
Business Lunch Tax
Business meals can now be written-off for 100% of the expense rather than 50% as previously allowed. The goal is to support the recovery of the restaurant industry.
Individual Direct Payments
Individuals making less than $75,000 can expect to receive a direct payment of $600 while couples earning less than $150,000 combined can expect to review $1,200. Families with children are eligible to receive and additional $600 per child. Payments could be received as soon as next week.