COVID-19 UPDATE: RELIEF PACKAGE H.R. 133

On December 21, 2020, the United States Congress passed the Consolidated Appropriations Act, 2021 (H.R. 133) which includes the long-awaited COVID-19 Relief Package. The bill has been sent to President Trump for his signature. In addition to federal appropriations for fiscal year 2021, individual stimulus checks, extended federal unemployment benefits, rental assistance, an extension of eviction moratorium and other relief, the bill includes changes to the CARES Act, the FFCRA, as well as additional relief provisions.

The bill provides tax clarifications for the Paycheck Protection Program, additional funding of nearly $284 billion, a “Second Draw Program,” and a simplified loan forgiveness application for loans up to $150,000.00. The bill also provides an extension of employer payroll tax credits for FFCRA emergency paid sick leave and expanded FMLA provided through March 31, 2021, although the bill does not appear to require employers to provide FFCRA leave.  An extension and expansion of the employee retention tax credit and an extension of repayment of the employer portion of social security tax is also included in the bill. Employers may also submit the cost of personal protective equipment and adaptive investments needed to comply with federal, state and local health and safety guidelines as eligible expenses under PPP.

We will continue to review the bill and update our PPP and FFCRA summaries, as well as provide other updates related to provisions of the bill, as guidance is provided by the IRS, DOL and other government agencies.

You can find the full bill text here.