We’ve read all 5600 pages of the new $900B stimulus bill which Congress passed late last night — that’s about $160M per page, by the way. Actually, no, we didn’t read it all, and neither did your Senator. The point is, both the House and Senate have agreed on a bill that awaits the President’s signature to become official.
So how will this new stimulus bill affect small businesses like yours? Here’s our assessment.
How The Stimulus Bill Helps Small Business
This stimulus is focused more on the consumer as many people are struggling to make ends meet. However, any help to families and households can end up helping our small business owners as well. And here’s what is included in the bill and how it could possibly help your business:
- PPP: Congress allocated almost $300 billion to helping the Paycheck Protection Program, including forgivable loans. Second loans are now available. The bill also has additional provisions to help small businesses, nonprofits, and independent restaurants. A portion of the PPP funds is set aside for very small businesses, available through community banks and minority depository institutions. More on the PPP loan.
- Previous PPP Loans and Taxes: If you took out a PPP loan that was forgiven, you will be able to deduct the costs of that loan on your taxes.
- EIDL Loans: There is $20B for the Economic Injury Disaster Loans. Learn more about those here.
- Taxes on Meals: There is a tax break on meals intended to help restaurants.
- Sick Days: There is a tax credit for employers offering extended sick pay.
Other Provisions In The Stimulus Bill
Other portions of the bill that could have an effect on your business and your family.
- The Stimulus Check: Granted, $600 is for those making less than $99,000 ($150,000 for a household). Those making less than $75,000 get the whole check. Above that, the check gets progressively smaller until it hits zero at $99,000. Six hundred dollars won’t go far. That’s about four trips to Costco. But any help is good and anything left at the end of the month can end up spent with your business.
- Jobless Benefits: The stimulus bill also includes $300 per week in unemployment benefits above and beyond what people get from local governments. It also extends these benefits for the gig workers.
- Supplemental Insurance: The supplemental insurance for gig workers and self-employed will continue as a result of this bill.
- Rental Assistance: The hold on evictions is extended through January 31st.
- Education: $80B for universities and $2.75B for K-12 schools.
What This Means For YOUR Business
We know that 2020 has been rough. You have likely had to make some hard decisions for your business. You may have needed assistance through state and federal resources. With this new stimulus bill, there are provisions that can be further assistance. Schedule a time to talk with us about how you can use these programs to help your business survive this pandemic economy. Call our office, ASCEND Business Advisory at 888-297-3321 or schedule a free consultation.