COVID-19 Federal Appropriation Legislation
On December 27, 2020, President Trump signed into law the Consolidated Appropriations Act, 2021 (the “Act”) to provide additional federal relief in connection with the ongoing COVID-19 pandemic. The Act, a nearly 6,000-page bill, originally contained the omnibus spending bill, which addresses the allocation of funds for the operation of the federal government that are unrelated to COVID-19. However, the Act ultimately included within it a COVID-19 stimulus package that provides approximately $900 billion in emergency relief to business and individuals throughout the United States. The Act contains a variety of relief provisions aimed at assisting individuals and businesses. Some of the most notable provisions are highlighted below.
The Act authorizes one-time direct, economic stimulus payments of up to $600 for individuals and $2,400 for families of four. At this moment Congress is still debating whether to increase these stimulus payments to $2,000 per individual, a bill the President has indicated he would sign.
The Act extends (for 11 weeks) federal unemployment insurance benefits by $300 a week for unemployed individuals. Some individuals in Colorado may experience a delay in the processing of these $300 payments, with payments not beginning until the end of January, but such payments will be paid retroactively when made.
The Act extends the temporary eviction moratorium through January 31, 2021. It also provides $25 billion in tax-free rental assistance.
For businesses, the Act provides a second PPP loan of up to $2 million for smaller, harder-hit businesses that employ not more than 300 employees, demonstrate a loss of 25 percent of gross receipts in any quarter during 2020 when compared to the same quarter in 2019, and have used the full amount of their first PPP before a second loan is disbursed.
The Act also provides relief to businesses in the form of a variety of tax credits, including a tax credit for companies offering paid sick leave to workers during the pandemic. This tax credit would effectively allow private companies to continue to provide certain COVID-19 paid leave offered to employees under the CARES Act, which expired December 31, 2020.
The Town of Avon will be hosting a business roundtable the week of January 4th to discuss these provisions as well as other relief programs initiated by the State of Colorado and Eagle County.
Town of Avon Virtual Business Roundtable
When: Jan 7, 2021 02:00 PM Mountain Time (US and Canada)
Topic: Avon Business Forum
Phone: 346 248 7799 Webinar ID: 874 2361 7345