12/30/2020
On December 27th, 2020, President Trump signed the 5,500-page, $900 billion COVID-19 economic relief bill. As there are still many questions surrounding details of the bill, we are sharing some answers we have now to keep you Informed&Prepared.
For Small Businesses
Q. Will local small businesses benefit from this round of funding?
A. The deal approved by Congress includes $325 billion for small businesses still struggling from the economic dislocations caused by COVID-19. Most of it ($284.5 billion) will go to a more targeted PPP program.
Q. Will small businesses that already received a PPP loan be eligible for second loan?
A. Yes, small businesses with less than 300 employees will be able to get a second loan if they can demonstrate they had a revenue reduction of 25%. The bill also includes a streamlined forgiveness application for loans of $150,000 or less to reduce the burden on the smallest borrowers.
Q. Is there anything businesses can do in advance to prepare?
A. While we expect much of the process to be the same this time around, we encourage you to visit the Small Business Administration Website for the latest on PPP loans: Small Business Administration Website.
For Consumers
Q. Will I receive a stimulus check?
A. The most recent relief legislation contains provisions for a second round of stimulus checks to be made directly to recipients (called Economic Impact Payments, or EIPs).
Q. How much will I receive?
A. The final individual payout amount is still unclear. The President authorized the bill with a $600 payout per individual, including dependents, but the House and Senate have debated different amounts.
Q. What do I need to do to receive my payment?
A. The vast majority of consumers don’t need to take any action. According to the government, the IRS will calculate and automatically send 130 million EIPs via direct deposit to be available to eligible recipients. During the initial round of EIPs this past spring, the IRS hosted live internet portals that allowed recipients to register their banking information to receive their payments electronically. We expect them to pursue a similar strategy, but we are waiting official confirmation. For the most up-to-date information, consumers should visit IRS.gov/coronavirus.
Q. When will I receive my stimulus payment?
A. The payments are expected to be sent before year-end. The banking industry is working closely with the Treasury Department to help our customers receive their payments quickly, securely and safely during this challenging time.
We are offering help for taxpayers, businesses, tax-exempt organizations and others – including health plans – affected by coronavirus (COVID-19).
