What’s in the Congressional Stimulus Deal?

After marathon Christmas negotiations (our deep sympathies to the families of our Congressional staffers during yet another holiday crisis), Congressional leaders finally came to an agreement on a stripped-down COVID stimulus package. It contains a number of major Chamber priorities including: a new round of PPP program loans for struggling businesses, simplification of the loan forgiveness, expansion of covered expenses, and more money for rural broadband and telehealth, among many others.

Here is what’s in the bill, thanks to Congressman Duncan’s staff and the US Chamber of Commerce:

COVID Relief for Businesses:

• Extends the Paycheck Protection Program (PPP) and adds deductibility for PPP expenses
  • Gives businesses experiencing severe revenue reductions an opportunity to apply for a second draw PPP loan
  • Eligible businesses must have fewer than 300 employees with a revenue reduction of at least 25 percent in the first three quarters of 2020 compared to 2019
  • Up to $2 million for second loans for most businesses at 2.5 times average monthly payroll costs; some eligible food service and accommodation businesses could qualify at 3.5 times average monthly payroll costs
  • Loan forgiveness for small businesses spending at least 60 percent of second PPP loan on payroll costs during covered period
  • Simplification of the forgiveness process for loans under $150,000 with an easier process for the SBA to audit forgiven loans
  • Expansion of the program to 501c6 organizations and Destination Marketing Organizations (DMOs), but excludes unions
  • Expansion of covered expenses to include software, human resource and accounting needs, property damage costs due to public disturbances not covered by insurance, and PPE purchases
  • Removal of previous requirements that Economic Injury Disaster Loan (EIDL) advances had to be deducted from loan forgiveness
• $15 billion in funding for entertainment venues, movie theaters, and museums that are experiencing significant revenue loss
• Codifies federal rules that ensure churches and faith-based organizations are eligible for PPP loans

Other provisions:

• $20 billion for purchase of vaccines that will make the vaccine available at no charge for anyone who needs it
• $8 billion for vaccine distribution
• $20 billion to assist states with testing
• $20 billion distribution from existing provider relief fund
• Ends CARES Act emergency powers for the Federal Reserve
• Stimulus checks — $600 for both adults and dependents 
• Temporarily extends a number of unemployment programs created by CARES Act that expire Dec. 31, 2020
  • Provide unemployed individuals an additional $300 per week for 10 weeks until March 14, 2021
  • Extends and phases-out PUA, which is a temporary federal program covering self-employed and gig workers, to March 14 (after which no new applicants) through April 5, 2021
• $10 billion for grants to childcare centers to help providers safely reopen
• $4 billion for substance abuse
• $82 billion in funding for schools and universities to assist with reopening for in-person learning that also includes $2.75 billion in designated funds for private K through 12 education
• $25 billion in temporary and targeted rental assistance for individuals who lost their source of income during the pandemic
• Extends the eviction moratorium until January 31, 2021
• $7 billion in broadband funding that includes
  • Nearly $2 billion to replace foreign manufactured broadband equipment that poses national security threats
  • $300 million to build out rural broadband
  • $250 million for telehealth
• $45 billion for transportation, including
  • $16 billion for another round of airline employee and contractor payroll support
  • $14 billion for transit
  • $10 billion for highways
  • $2 billion for airports
• Increases SNAP benefits by 15% for six months, but does not expand eligibility
• $13 billion to support our farmers and agriculture sector

The COVID stimulus was attached to the omnibus spending package.