On Sunday evening, President Donald Trump unexpectedly signed the $900+ billion stimulus bill that renews benefits that were already starting to expire. The new law also sends a second stimulus check for up to $600 to qualifying adults and their dependent children under age 17. However, Congress is expected to take up the fight to increase this to $2,000. President-elect Joe Biden has already committed to a third stimulus check. Here’s how a new Congress in January could hold the key. “As President, I have told Congress that I want far less wasteful spending and more money going to the American people in the form of $2,000 checks per adult and $600 per child,” Trump said in a statement Sunday night. But now that Trump has signed the bill into law, Congress is not beholden to the president’s concerns.
Now that the stimulus bill is law, we’ve laid out all the major parts that are in it. This story has been updated with the most current information.
A SECOND STIMULUS CHECK FOR $600 PER ADULT, BUT…
The new economic relief law will send a second stimulus check topping out at $600 to each eligible adult and a flat sum of $600 per qualifying child age 16 years and younger. That’s a change from the cap of $1,200 per adult and $500 per child dependent received in the first round of payments.
Unless something changes the $600 stimulus check maximum to $2,000, individuals will receive the full $600 if their AGI is under $75,000. Their payment will start to decline as their yearly income goes up. For heads of household, the AGI is $112,500, and for those married and filing jointly the number is $150,000.
$300 PER WEEK IN FEDERAL UNEMPLOYMENT INSURANCE
The CARES Act passed in March gave $600 per week to people who are out of work, on top of their usual state unemployment check. When this funding lapsed at the end of July, President Donald Trump signed an executive action to pay a $300 per week bonus. That money will run out by Dec. 31. The “CARES Act part 2” provides $300 per week in additional federal unemployment benefits until the March cutoff.
EXTENDS PAYROLL PROTECTION PROGRAM TO COVER EMPLOYEE WAGES
The Payroll Protection Program initially provided forgivable loans to small businesses as a way to help cover worker wages so they wouldn’t have to lay off employees.
The new law will add $285 billion to the Paycheck Protection Program for small business forgivable loans. The legislation will target aid for businesses especially hard hit by closures, including nonprofits, restaurants, and live venues.
Additionally, the new law allows for all PPP loans under $150,000 to apply for forgiveness with an as-yet-unreleased one-page form that is self-certification on the use of the funds. Consequently, many banks are now halting processing any applications for PPP forgiveness until the SBA issues its guidance and forms under the new law.
We understand that some of this new information can be overwhelming to parse, especially in light of the changing nature of the legal situation. If you have any questions on the new relief law, how it affects your family or business, or the extended PPP, don’t hesitate to give us a call. We’re here to help you.