New COVID-19 Relief Package: What it Means for Ag Retailers
Dec 22 2020
After eight long months since the last COVID-19 relief legislation, Congress passed a fifth stimulus totaling $900 billion in relief including $600 direct payments to individuals and families, enhanced unemployment benefits, small business aid, and funding for distribution of the Covid-19 vaccine.
The legislation also includes a number of provisions that may assist your business during the pandemic. In addition to a number of new and revised Paycheck Protection Program (PPP) provisions, the bill extends the New Markets Tax Credit, the Work Opportunity Tax Credit, and more.
Finally, the bill includes $1.4 trillion to fund the government through the fiscal year.
PPP relief includes:
- Provides $284.5 billion dollars to reopen and strengthen the PPP for first time and second time borrowers;
- Develops a process for a small business to receive a second PPP if the small business has less than 300 employees and can demonstrate a revenue reduction of 25 percent;
- Creates a simplified PPP loan forgiveness application for loans under $150,000 dollars; and
- Repeals the CARES Act provision that requires PPP borrowers to deduct their EIDL Advance from their PPP loan forgiveness amount.
Reference the summary on Continuing the Paycheck Protection Program and Other Small Business Support document from the Consumers Bankers Association below.
Reference the COVID Relief for Small Business Fact Sheet by the Small Business Committee Republicans.
Additionally, the COVID relief package includes $13 billion for the U.S. Department of Agriculture (USDA) to support agriculture, and specifically allows for payments to producers of renewable and biofuels and extends a number of biofuels tax credits including a one-year extension of the Section 40 second-generation biofuel producer tax credit.
For more information, contact ARA Director of Public Policy Hunter Carpenter at hunter@aradc.org or 769-798-1675.