Government Affairs Update: Phase IV COVID-19 Relief Bill Passed, Signed into Law

On December 21, Congress passed a roughly $900 billion coronavirus stimulus package, a ‎‎$1.4 trillion spending package to fund government programs through fiscal year 2021, and a ‎host of other miscellaneous provisions. Although he initially opposed the $900 billion dollar ‎stimulus bill, President Trump eventually signed it on December 27.‎
 
CLDA’s Government Affairs team has been pushing three legislative priorities on Capitol Hill ‎since the passage of the CARES Act earlier this year. We worked regularly with Congressional ‎staff to line up co-sponsors of bills they introduced in support of our priorities in both the ‎House and the Senate in order to fix problems with the Paycheck Protection Program (PPP) ‎and keep it as an economic lifeline for our members.‎
 
Priority One: Addressing deductibility of business expenses paid for with PPP loan money
The year-end stimulus law included a provision clarifying that eligible business expenses may be deducted even if paid for with PPP loan funds that are forgiven. This ‎reverses earlier rulings from the Treasury Department that would have disallowed the deduction of business expenses paid with forgiven PPP funds.
 
Priority Two: Allowing for a second draw of PPP loans
The new stimulus law provides for a second PPP loan, which is now available for small ‎businesses and non-profits with 300 ‎or fewer employees that can demonstrate a loss ‎of 25% of gross receipts in ‎any quarter during 2020 when compared to the same ‎quarter in 2019 (totaling ‎‎2.5 times the average monthly payroll up to $2 million).
 
Priority Three: Keeping the PPP adequately funded and available to all CLDA ‎members who ‎need it
The new law extends and expands the PPP for small businesses by providing ‎an ‎additional $284 billion for forgivable loans.
 
Early in 2020, CLDA ‎organized a coalition of 29 other organizations to fix, improve, and fully ‎fund the PPP. We have since been coordinating and strategizing regularly with other ‎organizations who put together their own groups. Our combined advocacy and coalition-‎building efforts ‎culminated in a coalition letter with more than 600 signatory organizations, ‎representing millions of small ‎businesses and tens of millions of American workers delivered ‎to Congressional offices. You can read the letter here.
 
CLDA ‎has been at the forefront of the effort to push through a fix to the PPP deductibility ‎problem, along with our other top priorities. We are happy to see success in these efforts. ‎We will continue to make sure that the PPP is there for as long as our members need it.
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