COVID-19 Financial Relief Coming?

UPDATE:  This blog has since been updated.  Please see Congress Agrees on Pandemic Financial Relief posted December 21, 2020, at 9:00 am for the most recent information.  

As I write this at 9 PM on December 16, 2020, it appears that Congress is reaching a consensus on a bi-partisan agreement designed to help individuals and businesses who need relief due to the pandemic.  Here are some of the provisions that are said to be part of the coming bill:

• More Stimulus Checks – Following the round of $1,200 per person checks earlier this year, Congress is looking at issuing more relief in the $600 to $700 range per person.
• Unemployment Benefit Extension – We may see a renewal of this federal supplement to state unemployment payments.  This time it will likely be $300 per week for 16 weeks.
• Another Round of PPP – $300 billion may be allocated to more loans under the Paycheck Protection Program.
• Speaking of PPP, Congress is set to clarify that expenses related to PPP forgiveness can be deducted, as was originally intended.  After the first law passed, the IRS ruled that these expenses could not be deducted.
• $25 billion in rental assistance.

These are just some of the provisions in the proposed $908 billion legislation.  DWD will continue to monitor its progress and let you know when and if a new law is passed.

Contributed by: Mark Westerhausen, CPA | Director | DWD CPAs & Advisors