Source: David Maiolo

 

WASHINGTON DC – December 21, 2020 – Today, Congress unveiled text for its long-awaited $2.5 trillion COVID-19 stimulus and year-end spending package, the second largest bill in U.S. history, and clearing a path for passage sometime late Monday evening after midnight.

 

The 5,593-page package includes a $1.4 trillion omnibus spending package that will fund federal agencies through September 2021, a $900 billion COVID-19 stimulus package meant to provide much-needed relief at a time when infection rates are on the rise, and many businesses are floundering, and several reauthorizations for important federal programs like the Water Resources Development Act (WRDA).

 

More information on what this package includes is on the way.  In the meantime, this package includes several items relevant to the Marine Retailers Association of the Americas membership and the marine industry across the United States.

 

Top-line items with approximate funding include:

 

Pandemic Relief

·      $20 billion to purchase vaccines.

·      $9 billion for vaccine distribution.

·      $22 billion for COVID-19 testing, contact tracing, and mitigation.

 

Unemployment and Direct Stimulus Checks

·      $120 billion to extend federal unemployment benefits to self-employed persons, and to provide additional $300 weekly federal unemployment insurance for jobless workers until March 14.

·      Direct payments of $600 for individuals making up to $75,000, ($1,200 for couples making up to $150,000), with an additional $600 per child. Checks could be released as quickly as the end of the month.

 

Paycheck Protection Program (PPP)

·      $284 billion for forgivable PPP loans, including a “second draw” for small businesses with fewer than 300 employees that can prove their revenue has fallen by 25%, at a maximum loan of $2 million.

·      Simplified forgiveness applications for PPP loans under $150,000.

·      Fixes issues with Economic Injury Disaster Loan recipients so they will no longer need to deduct advance payments from PPP forgiveness amount.

·      Allows tax deductions for expenses paid with proceeds of a forgiven PPP loans

·      Makes 501(c)(6) nonprofits eligible for PPP, subject to the following:

o   Lobbying activities do not comprise more than 15% of its receipts.

o   Lobbying activities do not comprise more than 15% of activities.

o   Lobbying activities of the organization do not exceed $1,000,000 during the most recent tax year, ending February 15, 2020.

o   The organization has no more than 300 employees.

o   Professional sports leagues or organizations with the purpose of promoting or participating in a political campaign or other political activities are not eligible.

·      Expands the employee retention tax credit.

·      Extends payroll tax subsidy for employers offering workers paid sick leave.

·      Increases Earned Income Tax Credit.

 

WRDA Reauthorization

·      Reauthorizes the biannually funded Water Resources Development Act.

·      Specifics on WRDA 2020 can be found here.

 

Rural Economic Development

·      $7 billion to expand broadband access for unemployed workers, students, and families.

·      $300 million for rural broadband investments.

 

The major points of contention for a stimulus package – state and local funding, and business liability protections – are intentionally excluded from this package, ensuring a smoother passage of this emergency rescue package while simultaneously teeing-up a heated debate early in the next congress.

 

For any questions or comments, please reach out to Adam Fortier-Brown at adam@mraa.com