President Trump is expected to sign into law today the legislation to fund the government for the remainder of the fiscal year which includes the long awaited Covid relief package. The highlights we believe are most important for small businesses:
- Costs incurred that secure forgiveness of the PPP loan WILL be tax deductible.
- The Work Opportunity Tax Credit (WOTC) is extended for five years.
- The availability of a second round of PPP loans for those businesses suffering significant economic damages due to the continued pandemic.
- Round two is available even if a PPP loan was already applied for and received.
- The size limit is now 300 employees vs. 500 employees.
- Loans are limited to $2 million vs. $10 million.
- Borrowers must have had a 25% decline in gross revenues in any quarter of 2020 compared to the same quarter in 2019.
The bill is 5,000+ pages long and will take some time to review and digest, so there is more to come. Stay tuned.