December 18, 2020 | By: LendVer Staff –
Congressional members worked late into the day on Thursday to finalize the details of a $900 billion stimulus package. There is bipartisan support and a strong indication from party leaders that a relief package will be passed, but the realization is mounting that an additional government extension may be required through the weekend to get it done.
Here are key stimulus updates…
- The government will shutdown at midnight tonight if government funding is not extended.
- The proposed stimulus bill and government shutdown are connected, since legislators want to link relief to the $1.4 trillion funding bill that will keep the government operating through September.
- The current stimulus proposal includes most of the items in the original bipartisan, bicameral plan, but will not include state and local funding, or liability protections for small businesses. Funding for vaccine distribution will be included as well.
- The new bill will allow for the extension and funding of the Paycheck Protection Program.
- The extension of unemployment insurance, and the federal unemployment bonus will be extended at a reduced $300-per-week figure.
- Senator Kevin Cramer (R-ND) announced on December 15th that the Paycheck Protection Small Business Forgiveness Act is included in the relief package currently being considered in Congress. Should stimulus pass with this measure included, business owners with PPP loans of $150,000 or less, will see a significantly streamlined forgiveness process.
- Business owners and self-employed borrowers who already have a PPP loan, will likely be able to apply for a 2nd PPP loan.
- $600 direct stimulus checks are likely to be included, and will be sent to individuals under a certain income threshold. Reports have also suggested that eligible families could receive $600 per child for at least two kids.
Congressional leaders, including Senate Majority Leader Mitch McConnell (R-KY), have stated that short-term funding will need to be passed to provide enough time to approve relief legislation.
For new stimulus to be enacted, Congress needs to finalize the bill, pass it in both houses, and then the President must sign it into law.
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