December 2020 Federal COVID Relief Bill Becomes Law

Here are some highlights from the newly passed COVID Relief Bill that could affect our clients:

• Extended Pandemic Unemployment Assistance (PUA):. If you are unemployed due to COVID, your benefits will be extended until March 14,2021. There is a limit of 50 weeks of PUA. Additionally, individuals are no longer eligible to receive benefits after April 5, 2021.
• Stimulus payments: Individuals earning less than $75,000 ($150,000 joint return) will receive a $600 payment and $600 per eligible child.
• Additional guidance on the Educator Expense Tax Deduction: Educators have available a deduction for personal protection equipment, cleaning supplies, and supplies used to keep their classrooms clean and safe. Be sure to keep all of your receipts and speak to your tax advisor about this deduction.
• Eligible FFCRA employers MAY extend providing COVID related 2-week sick pay and eFMLA until March 31, 2021 and receive the tax credit to compensate for the expense. There is no additional pool of time, and the previous 12-week limits for FMLA still exist.
• PPP Second Draw Loans: Companies that received PPP loans in 2020 may be eligible for a second round if they have fewer than 300 employees and a 25% reduction in gross receipts in any selected 2020 quarter when compared to the same quarter in 2019. Companies are only eligible for one Second Draw PPP loan.
• Expanded PPP Loan conditions: Eligible expenditures that are allowed for forgiveness now include operations expenditures, covered property damages, supplier costs, and worker protection costs. The time to use the funds has been extended to March 31, 2021.
• PPP Loan funding: If a company did not use all funds received in their loan and returned a portion of those funds (and not received forgiveness) or did not take the full amount offered, they are permitted to request modifications to their loans.

Like most of the COVID-related relief bills this year, the December 2020 Federal COVID Relief Bill is complicated and nuanced. If you would like to discuss your opportunities under the December 2020 bill, please call Loper Law LLC at (251) 288-8308.

Happy New Year.