The Act provides $500 billion for a Treasury Department Exchange Stabilization Fund to provide loans, loan guarantees and other investments to eligible businesses, as well as $349 billion for a Small Business Administration “paycheck protection” program.
Tax relief for business
The legislation includes a five-year net operating loss (NOL) carryback, payroll tax relief and other significant provisions for businesses.
Tax relief for individuals
The legislation includes "recovery rebate checks" of up to $1,200 for individuals, $2,400 for married couples, and $500 per child, which will begin phasing out after $75,000 for a single filer and $150,000 for a joint filer.
The legislation includes $340 billion in emergency funding for hospitals, healthcare agencies and assistance to state and local governments responding to the COVID-19 virus.
Paycheck Protection Program
Small businesses can seek forgivable loans from the government to cover expenses and maintain their payroll. Recent changes to the PPP program include:
- The window businesses have to use the funds is extended from eight weeks to 24 weeks.
- The previous deadline of June 30 to rehire workers (And still qualify for full loan forgiveness) has been extended to Dec. 31, 2020.
- More leeway is given on loan forgiveness for business owners who show they could not rehire workers or reopen due to safety standards.
- Extends the time recipients have to repay the loan - allowing deferral through 10 months from loan origination.
- The bill allows companies that get loan forgiveness from PPP to continue to defer payroll taxes through the end of 2020.