The U.S. Congress passed the $900 billion COVID-19 Economic Stimulus Relief Act on Dec. 22. This legislation, which passed along with the $1.4 trillion FY21 budget package, is the second largest stimulus package ever passed, behind the CARES Act, which was passed in March of this year. The bill now goes to the President for signature. President Trump is expected to sign the legislation.
The stimulus legislation includes $300 billion in funds to the Small Business Administration (SBA) for the reauthorization of the Paycheck Protection Program (PPP), providing a second round of loans to small businesses struggling due to the pandemic. Businesses with less than 300 employees that are able show demonstrated losses this year compared to 2019 are eligible for a second forgivable PPP loan. Additionally, loans of less than $150,000 will be evaluated for forgiveness through a simple, one-page loan forgiveness application document. To read more about the requirements for a PPP loan, click here to see the SBA website.
In addition to relief funds for small businesses, this legislation also includes a second round of direct individual stimulus payments. Individuals with an income less than $75,000 per year will be eligible for payments of a maximum of $600.
The Automotive Service Association (ASA) is committed to assisting shops as they navigate these unprecedented times. News and information will be posted on the Taking the Hill portion of the ASA site as it breaks.
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