January 4, 2020
Congress has passed a $900 billion COVID-19 relief package, the Consolidated Appropriations Act of 2021, which was signed by President Trump on Dec. 27. The bill sends millions of Americans direct stimulus payments and renews the SBA PPP loan program to help small businesses nationwide struggling to stay open during the pandemic.
Peoples State Bank is providing information as we know it as of January 4, 2021 for individuals and businesses.
$600 per eligible person paid directly via direct deposit or check similar to stimulus payments made earlier in 2020. The Treasury Department and IRS have begun initial direct deposit payments on January 4, 2021 that will continue for several weeks. Paper checks will begin to be mailed in January, with a January 6, 2021 pay date. The IRS reports there may be some delays for some consumers to receive their payments, and that some people nationwide who received an automatic deposit into their account in the first payment, may be mailed a check for this new payment. Click here for more information from the IRS on the distribution of checks. Click here for more information from the Treasury on the distribution process.
People who earn up to $75,000 per year and couples filing jointly who made up to $150,000 based on 2019 tax returns will receive the full $600 per person. The payments will phase out until they stop for individuals who made $87,000 and couples who made $174,000. Eligible families would receive an additional $600 per child under age 17. While unclear, it does not appear the payment for each child is subject to any phase-out. Those who filed their 2019 tax returns will receive their money automatically, as well as Social Security recipients and those who uploaded their bank account information using the IRS’s online portal to receive their initial stimulus payment.
More information on the Economic Impact Payments can be found at the IRS EIP Information Center. You can also check the status of your payment at IRS.gov/GetMyPayment.
$300 weekly unemployment supplement through mid-March. The plan would also extend the Pandemic Unemployment Assistance and Pandemic Emergency Unemployment Compensation programs, which expanded jobless benefits eligibility and allowed people to continue to receive payments after their state assistance ran out, through mid-March. Both programs will continue through April 5 for existing claimants who have not yet reached the maximum of 50 weeks.
The bill provides a federal funded $100 per week additional benefit for those who have at least $5,000 in annual self-employment income but are disqualified from receiving Pandemic Unemployment Assistance because they are eligible for regular state unemployment benefits.
$69 billion for vaccine purchase and distribution, and testing, tracing and COVID mitigation programs, mental health funding, research, and support to health care providers. The plan puts $20 billion into distribution of the two approved COVID-19 vaccines and sets aside $20 billion to make sure Americans get the shot for free.
The bill extends the federal eviction moratorium through January 31, 2021. It puts $25 billion into a rental assistance fund, which state and local governments can allocate to people to use for past due and future rent or utilities payments.
Paycheck Protection Program (PPP)
The bill would put $284 billion in PPP loans, which can be forgiven, and allow hard-hit businesses to draw a second round of funding. This round of second loans would be limited to those businesses with fewer than 300 employees that have seen drops of at least 25% of revenue during the first, second, or third quarter of 2020 compared to 2019. Like the first round of PPP, the loan amount is equal to 2.5 times average monthly payroll, with a maximum of $2 million. Eligible expenditures are expanded and the forgiveness process for loans (both first and second round of PPP) under $150,000 is simplified.
It includes $12 billion in grants for companies in low-income areas and money set aside for loans from community-based and minority-owned lenders. The bill also repeals a CARES Act provision that required PPP borrowers to deduct the amount of their EIDL advance from their PPP forgiveness amount. Banks are waiting for the Small Business Administration (SBA) to release details on how to apply for the funds and what documentation will be needed. We anticipate this direction in the first half of January 2021.
Please click here for more information on the PPP loan process.
Payroll Tax Repayment
Employers who deferred their workers’ payroll taxes under President Trump’s executive action from August now have until the end of 2021 to increase their employees’ withholding to pay back the taxes owed. Originally, the deferred amount had to be repaid by April 30, 2021.
The bill will put $45 billion into transportation, including funding for airline payroll assistance, transit systems, and state highways.
The legislation puts $82 billion into education, including more than $54 billion for public K-12 schools and nearly $23 billion for higher education. Schools require additional resources such as personal protection equipment to stay open safely.
The measure contains $13 billion for agriculture, including money under the Coronavirus Food Assistance Program for growers and livestock, dairy, and poultry producers.
Arts & Entertainment
The bill sends $15 billion in aid to live event venues, movie theaters, and cultural museums. The initial grant can total up to $10 million per venue, a second grant worth half the amount of the first, may also be available.
During the first 14 days of the program’s implementation, grants will be awarded to those venues that have faced 90% revenue losses. For the next two weeks, venues with at least 70% revenue loss, and after that, any other eligible arts & entertainment venues can receive grants.
We’re Here For You
Our entire team at Peoples State Bank is here for you. Reach out to any of us for personal attention and answers to your questions. We continue to serve you through our lobbies, drive-ups, phone, text, email, and individual appointments. Just give us a call at 888.929.9902 or book an appointment online at bankpeoples.com.
Thank you for the privilege to serve you.