Just this week, the Republican Senators unveiled their proposal of what could possibly be contained in the next Coronavirus relief bill. The bill known as the HEALS Act (Health, Economic Assistance, Liability Protection, and Schools Act), is a $1 trillion-dollar proposal which includes proposed stimulus payments for Americans, extended additional unemployment benefits at a reduced amount, a second round of paycheck protection program funding for businesses impacted by the Coronavirus and other proposals.
Here is what you need to know about the HEALS Act.
Second Round of Stimulus Payments
This bill is expected to include a second round of stimulus payments in the amount of $1,200. Similar to the previous CARES Act, those who qualified previously will qualify this time as well with a small exception for dependents. The previous CARES Act provided stimulus payments to those who earned less than $75,000 for single individuals and $150,000 for married filing jointly taxpayers. In addition, individuals also received an additional $500 for each dependent under the age of 17. This bill proposes to provide additional dependent payments for all dependents despite their age.
Extended Unemployment Benefits (Reduced)
This bill is expected to include an extension of additional unemployment benefits but only a certain percentage. Currently, the CARES Act provides an additional $600 for those unemployed beyond regular state unemployment benefits. This amount expires on July 31st. This bill will reduce the amount from $600 to $200 weekly until states’ unemployment offices can implement a system to pay unemployed workers 70% of their prior wages. This will be set to expire by December 31st.
Second Round of Paycheck Protection Program Funding
This bill is expected to provide additional funding to businesses most impacted by COVID-19. As such, this bill expects to provide additional funding to small businesses that demonstrate a great need through the PPP program. The program will be limited to companies with less than 300 employees and those whose earnings were reduced by 50% in the first and second quarters of the year. The PPP program provides forgivable loans to businesses for the payments of payroll, rent, utilities, and interest.
Grants available to Louisiana Businesses
Do not forget to apply!
The state of Louisiana will begin the acceptance of The Main Street Recovery Grant Program. This program is designed to help small businesses with grants up to $15,000. Keep in mind, for the first 21 days, the process is only available to businesses who have not received funding from PPP, SBA EIDL loans, or business interruptions insurance proceeds.
Kemberley Washington, CPA is the owner of Washington CPA Services, LLC. She has written several books to include also “It all starts with a budget.” Check out her upcoming classes regarding faith + finances.