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    There May Be Additional COVID-19 Economic Relief in Sight

    [fa icon="clock-o"] Sep 29, 2020 9:15:00 AM [fa icon="user"] Cheryl Coyle [fa icon="folder-open'] Budgeting, Small Business, Financial Management, loan

    economic reliefAs COVID-19 rages on, there are additional relief packages being considered in the Senate. Among them are The Health, Economic Assistance, Liability Protection and Schools (“HEALS”) Act and the “HEROES ACT,” short for the Health and Economic Recovery Omnibus Emergency Solutions Act.

    Below is a summary of each proposal:

    The HEALS Actpresented by Republicans in July, it is comprised of eight pieces of legislation. They are:

    1. The Continuing Small Business Recovery & Paycheck Protection Act
    2. The Coronavirus Response Additional Supplemental Appropriations Act, 2020
    3. The Restoring the Critical Supply Chains and Intellectual Property Act
    4. The American Workers, Families and Employers Assistance Act
    5. The Supporting America’s Restaurant Workers Act
    6. The Trust Act
    7. The Safe to Work Act
    8. The Safely Back to School and Back to Work Act

    The HEROES Act – proposed by Democrats in May, this act is comprised of one bill. Highlights are:

    • A second stimulus check up to $1,200
    • Provides $600 unemployment insurance through January 2021. It also extends eligibility for independent contractors, self-employed individuals, and independent contractors.
    • Establishes a “Hero Fund” of $200 billion to provide hazard pay to some essential workers by providing a $13 per hour pay premium
    • Extends the CARES Act suspension on interest and payments for most federal student loans through September 2021

    Other Highlights of Each Act

     

    HEROES Act

    (Democratic)

    HEALS Act

    (Republican)

    Total Cost of Proposals

    $3 trillion

    $1 trillion

    Paycheck Protection Program

    Expanded eligibility, eliminates 75% of payroll requirement, extends application period to Dec. 31, 2020

    Adds $190 billion to PPP Fund, expands eligibility, allows businesses to request a second loan, expands approved uses for forgiveness

    Employee Tax Credit

    Increases tax credit to 80% of up to $15k in wages

    Increases tax credit to 65% of up to $30k in wages

    Stimulus for dependents

    $1,200 for each dependent not to exceed 3

    $500 for dependents – no age limits

    Employee Bonus who are rehired or start new job

    Not mentioned

    Provides a return to work bonus of up to $450.00 per week for unemployed workers who secure a new job or are rehired

    Enhanced Unemployment

    Same as CARES Act ($600/week)

    $200 per week initially. Up to $500/week to match 70% of lost wages when added to state benefits

    Funds for COVID-19 Testing

    Not mentioned

    Provides for $16 billion for testing

    Liability Protection from Coronavirus Illness

    Not mentioned

    5 year liability to prevent businesses, schools, and hospitals from being sued over COVID-19 related issues

    Eviction Protections

    Expands to cover nearly all rental properties, extends moratorium for an additional 12 months, allocates $200 billion for housing and $100 billion for rental assistance

    Not mentioned

     

    Stay Tuned

    At the time that this blog is published, both Acts remain proposals. If either proposal passes the Senate and House, it could be signed as early as October by the President. It is rather unlikely that funds would be released in that scenario until mid-December.

     

    Additional Resources

    We will pass along updates as we become aware. If you need guidance on PPP loans or forgiveness, or have questions about options available to your small business, please contact us at www.Budgetease.biz or by clicking below. You can also read our other publications at our COVID-19 Resource Center, as well as read this helpful article about 4 Simple Tips to Be Prepared for the Next PPP Opportunity.

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    Cheryl Coyle

    Written by Cheryl Coyle

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