It is only right that we got a little extra treat during 2020’s holiday season, right? I mean, the year delivered enough tough hits that a bonus felt required by every law of karma.
That came about when the latest COVID relief bill was signed by President Donald Trump after he initially delayed that action. The biggest immediate impact seen by many with this was direct stimulus payments. Many who received the initial stimulus payment via direct deposit (remember that, way back in 2020?) have already seen the new funds hit their bank, and a little extra money following the holiday is always a welcome thing. If you have not received your payment yet and want to possibly check its status, you can do this via this special page on the IRS website.
Those payments got the most press when the package was passed, but there are many other portions to the relief, as well. For instance, there is $15 billion allocated for live venues, independent movie theaters, and cultural institutions. It is great to think that these places could still survive these trying times because they provide goods that we consume together, ones that we will yearn for when they feel safe again, and there has not been enough ‘together’ in almost a year now.
Another key aspect is providing an additional $300 per week for all people receiving unemployment benefits through March 14, 2021. It is kind of scary to think that that date brings us pretty close to a year since COVID-19 started to throw our lives into such disarray. But maybe there is also hope there in the fact that we made it that far.
The new package also provided additional funding for new PPP loans. This new funding can be used for a second PPP loan for small businesses that faced a significant revenue decline in any 2020 quarter compared to the same quarter in 2019. That is a stipulation that should hopefully help those businesses that were most affected in the last year. It also allows not-for-profit organizations to qualify for a loan for the first time.
Even those businesses who do not qualify for a loan this time around got an added bonus, though, as the latest package clarified the deductibility of business expenses paid for with forgiven PPP funds. Those expenses were not going to be deductible under previous IRS guidance, but now will quality as deductions giving some extra relief when tax time comes.
And a final bonus for those with PPP loans under $150,000 was a simplified forgiveness application.
There are other bits involved in the package, as well (as there should be with such a high price tag), but those are some quick highlights. As always, if you have any questions on these, or anything not covered in this quick synopsis, we remain happily committed to doing what we can to answer your questions and help you navigate this difficult period.
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