COVID relief bill adds PPP tax breaks the Treasury opposed - by Darla Mercado, CFP
KEY POINTS:
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Lawmakers agreed on a $900 billion Covid stimulus package over the weekend. The measure sets aside $284 billion towards forgivable small-business loans under the Paycheck Protection Program.
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Small businesses that took a PPP loan and saw their revenues fall by 25% will be able for a second loan.
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Congress will also allow PPP borrowers to take tax deductions for covered business expenses, Treasury Secretary Steven Mnuchin confirmed on CNBC Monday.
Lawmakers extended an additional lifeline to small businesses in the next round of Covid stimulus: more forgivable loans and the ability to take a tax write-off for covered expenses.
Members of Congress reached an accord over a $900 billion rescue package on Sunday.
The measure includes $600 stimulus checks to most adults and each child, as well as a $300 weekly unemployment enhancement.
There are also a series of provisions aimed at ailing small businesses.
In particular, Democrats said they would earmark $284 billion for forgivable loans through the Paycheck Protection Program, according to a joint statement from House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer.
Lawmakers also said that they would expand PPP eligibility to include nonprofits and local newspapers, TV and radio broadcasters.