Update on Federal Coronavirus Relief Packages

03/24/2020 1:01 PM | ACRAsphere Blog Team

Congress is continuing to negotiate additional coronavirus relief packages, with both Senate Republicans and House Democrats unveiling their plans in the past few days. House Democrats revealed their 1,400 page bill on Monday night, and Politico has outlined the main differences between the House and Senate packages here. Of particular interest to CRM firms is the differences in tax relief for businesses:

"Businesses would get to deduct losses from this year, last year and 2018 from their taxes for any of the last five years. The Senate bill includes a similar “carry back” provision. The House did not include provisions allowing faster write-offs for restaurant and retail business investments or bigger deductions for business interest, both of which are in the Senate bill."

Those involved in the negotiations are hoping for an agreement on Tuesday

Specific committees have also been unveiling their proposals for bolstering support for the country's small businesses during the pandemic. In particular, the House Small Business Committee has provided specific information on the COVID-19 RELIEF for Small Businesses Act of 2020, which aims "to improve and leverage the tools available at the Small Business Administration (SBA) to support small businesses, and create new tools to address the unprecedented pressure that small businesses face." Some highlights of interest to CRM firms:

  • Additional Lending Programs
    • Business Stabilization Direct Loan Program: This program would provide small business owners capital to pay off or refinance existing debt, provide employee benefits, pay employee wages and related taxes, and acquire technological and other resources that enable continuity of operation. Up to 50% of the loan would be forgiven by December 31, 2021 if the borrower has retained the same number of employees as when they received the loan.
    • Small Business Relief Guaranteed Loan Program: This temporary guaranteed loan program is meant to complement the existing guaranteed loan program and the new direct loan program mentioned above. This loan would also have up to 50% forgiven by December 31, 2021 if the borrower has retained the same number of employees as when they received the loan.
  • Small Business Debt Relief: The bill would provide small businesses with relief from SBA loan payments, including principal, interest, and fees, for six months.

  • Federal Contracting: The bill would extend contract performance time by 90 days to small businesses affected by COVID-19. The Federal government would be required to pay small business contractors and revise the delivery schedules, holding small contractors harmless for being unable to perform under a contract because of COVID-19.

    In addition, federal agencies would be required to promptly pay small business prime contractors and contractors with small business subcontractors within 15 days, notwithstanding any other provision of law or regulation, for the duration of the President invoking the Defense Production Act in response to COVID-19.

Read the full description of the of the COVID-19 RELIEF for Small Businesses Act of 2020 here, and as remember that the proposals are subject to quickly change as the situation continues to unfold. 

Stay tuned to the ACRAsphere for the latest on how the relief/stimulus packages affect your firm and the CRM industry overall.

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