Tuesday, December 29, 2020
On December 27, 2020, President Trump signed into law the latest COVID-19 relief package, providing $900 billion in much-needed aid to individuals and businesses during the ongoing coronavirus pandemic. A crucial part of this overdue legislation is the more than $284 billion allotted for a new round of Paycheck Protection Program (PPP) funding. This current round of PPP funding extends through March 31, 2021, or until the funding is exhausted. Critically, the legislation also avoids a government shutdown.
Of the more than $284 billion in additional funding allocated to the PPP, $35 billion is set aside for first-time borrowers, $15 billion of which will be set aside for smaller, first-time borrowers with 10 or fewer employees, or loans less than $250,000 in low-income or moderate-income neighborhoods. In addition, $25 billion of the new PPP funding will be set aside for second draw PPP loans for smaller borrowers with ten or fewer employees, or
Tuesday, December 29, 2020
For employers, there are two key elements of the stimulus package that you should be aware of:
Unemployment Insurance (UI)
The package provides that individuals receiving unemployment benefits will receive an additional $300 per week in federal UI benefits for up to 11 weeks through March 14, 2021. As you may recall, the Coronavirus Aid, Relief, and Economic Security Act (more familiarly known as the CARES Act) provided recipients of state unemployment benefits with a $600 supplement, which expired in July 2020. The package’s $300 federal payment is, likewise, in addition to payments that individuals receive from their state unemployment programs.
In addition, it extends the Pandemic Unemployment Assistance (PUA) and the Pandemic Emergency Unemployment Compensation (PEUC) programs. The PUA program provides federally funded benefits to individuals who do not otherwise qualify for state unemployment benefits, such as self-employed work
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