New State COVID-19 Relief, Federal Stimulus Packages
United States Congress & Michigan State Legislature Pass New Stimulus, COVID-19 Relief Bills Aimed to Help Struggling Michiganders & Businesses
Earlier this week, a pair of bills passed in the Michigan State legislature and the United States Congress aimed to send relief to Americans and businesses struggling throughout the COVID-19 pandemic.
The Michigan COVID-19 Relief Bill, signed by Governor Gretchen Whitmer on December 29th, includes $63.5 million for a “small business survival grant program,” as well as $220 million to extend (not expand) unemployment benefits through March.
The U.S. government’s $990 billion stimulus package, signed by President Donald Trump, includes enhanced jobless benefits, direct payment checks to individuals and $82 billion in aid for K-12 schools and colleges.
It also provides an additional $284 billion to reopen the Paycheck Protection Program (PPP), which stopped taking applications in August. Small businesses can apply for a second loan, with $12 billion specifically designated to support minority-owned and very small businesses.
The new legislation clarifies an outstanding issue around deductibility of the income and expenses used to support forgiveness for the PPP loan. Congress confirmed businesses can still claim normal tax deductions for business expenses paid with PPP money. And, as previously known, if a PPP loan is forgiven, it will not be considered income.
In addition, the bill carves out $15 billion for live venues, independent movie theatres and cultural institutions. It also expands eligibility to more nonprofits, as well as local newspapers, TV and radio broadcasters.
Over the next few days and weeks, the Maner Costerisan team will be pouring over the 5,500 page federal legislation and the state legislation to ensure we provide the most timely and accurate insight on how the bills could impact your business.
We plan to host a Q&A-style webinar to answer questions around the relief packages, on Friday, January 8, 2021 at 10 a.m. Stay tuned for additional details as they are available.