As of  Monday night , the House has approved a $900 billion pandemic relief bill and was sending it to the Senate for late-night consideration after days of hard-fought negotiations. We are still waiting for a final signed bill and additional analysis on the final package. It does appear to Insider that this latest round of Covid Relief should be including the following:

PPP Additional Funding

The new package should provide $275 billion in additional funding for those businesses that did not receive PPP money in the first round, especially minority- and women-owned businesses. In addition, it allows businesses a second chance at PPP money if they can show significant losses in 2020 over their 2019 revenue. The exact percentages are yet to be determined.

Expense Deductions and Forgiveness on PPP Funds

The bill also addressed what was probably the biggest outstanding issue with PPP: the deductibility of expenses paid for with the forgivable loan along with the tax treatment on loan forgiveness. Initially, the interpretation of the Administration, through the Secretary of the Treasury, was that businesses could not deduct the expenses paid for with PPP funds, as they ordinarily would, because the loan is forgivable and not taxable income. The Administration’s view was taking the tax deductions would be “double dipping” on top of the grant. The business community as well as the industry organizations, including OAAA, were up in arms about the adverse tax consequence. It appears that in this new package deductibility will be corrected, however you may have to demonstrate a loss in revenue in 2020 versus prior years.  There also is a chance that the forgiveness of the loan will not create an income event for 2020 or 2021 depending on when your forgiveness application is accepted. .

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