COVID Relief, PPP, and EIP Information
Senate Amendment to H.R.1319
On March 10th, the House passed the Senate’s Amendment to H.R.1319.
Read the full text of H.R.1319
- Qualifying individuals will get $1,400 for themselves and $1,400 for each of their qualifying dependents claimed on their tax return. As with the first two Economic Impact Payments in 2020, most Americans will receive their money without having to take any action. Some Americans may see the direct deposit payments as pending or as provisional payments in their accounts before the official payment date of March 17.
- The third round of Economic Impact Payments (EIP 3) will be based on the taxpayer’s latest processed tax return from either 2020 or 2019. This includes anyone who successfully registered online at IRS.gov using the agency’s Non-Filers tool last year, or alternatively, submitted a special simplified tax return to the IRS. If the IRS has received and processed a taxpayer’s 2020 return, the agency will instead make the calculation based on that return.
- The IRS will automatically send EIP3 to people who didn’t file a return but receive Social Security retirement, survivor or disability benefits (SSDI), Railroad Retirement benefits, Supplemental Security Income (SSI) or Veterans Affairs benefits. This is similar to the first and second rounds of Economic Impact Payments.
- The third stimulus payment is not restricted to children under 17. Eligible families will get a payment based on all of their qualifying dependents claimed on their return, including older relatives like college students, adults with disabilities, parents and grandparents.
- If you did not file either a 2019 or 2020 tax return and have not previously registered with the IRS.gov non-filer tool for previous Economic Impact Payments, you are still eligible to receive payments by filing a 2020 return and claiming the Recovery Rebate Credit.
H.R.133 – FY2021 Appropriations & COVID Relief
On December 21st, the House and Senate passed H.R.133 providing additional targeted relief for families, small businesses, and workers.
Read the full text of H.R.133 – Consolidated Appropriations Act of 2021
What’s in the final version of H.R.133 – FY2021 Appropriations & COVID Relief?
1.) Assistance for Small Businesses
- Replenishes the Paycheck Protection Program (PPP) for small employers, self-employed individuals, and “gig economy” workers to help prevent workers from losing their jobs and small businesses from going under. This relief package develops a process for a small business to receive a second PPP forgivable loan if the small business has less than 300 employees and can demonstrate a revenue reduction of 25 percent. Implements additional safeguards to ensure this money goes to the small businesses truly in need.
- Paycheck Protection Program expenses will be tax deductible.
- Provides $20 billion dollars to restart and extend the SBA’s EIDL Advance Grant for small businesses in low income communities and creates a process for existing EIDL Advance grantees who received less than $10,000 dollars to reapply for the difference between what they received and the maximum EIDL Advance Grant of $10,000 dollars.
To learn more about Coronavirus relief options, visit sba.gov.
2.) Vaccine and Therapeutic Funding
- Appropriates nearly $20 billion for vaccines and therapeutics to cover the cost for anyone in need.
- An additional $8.75 billion to further bolster vaccine distribution efforts.
3.) Direct Payments to Americans
- Provides a one-time economic impact payment of $600 per individual, $1,200 per couple, and $600 per child. The full rebate amount is available for those with incomes at or below $75,000 for individuals, $112,500 for head of household, and $150,000 for married couples. Click here for answers to frequently asked questions.
4.) Support for Medical Professionals
- Rushes critical support to the hospitals and health care workers on the front lines, including funding to reimburse health care expenses and other medical supplies.
5.) Expanded Unemployment Insurance
- Provides economic relief and much-needed support for workers by making a significant investment in unemployment benefits.
6.) Relief for Students, Renters, and Homeowners
- Halts evictions for renters in properties with federally backed mortgages through the end of February.
7.) Assistance for Schools and Educators
- $82 billion will be allocated for the Education Stabilization Fund.
- The Child Care and Development Block Grant Program (CCDBG) will receive an additional $10 billion.
New Guidance on PPP Re-Opening
Paycheck Protection Program (PPP) re-opened the week of January 11 for new borrowers and certain existing PPP borrowers.
To promote access to capital, initially only community financial institutions were able to make First Draw PPP Loans on Monday, January 11, and Second Draw PPP Loans on Wednesday, January 13. The PPP then will open to all participating lenders shortly thereafter.
Key PPP updates include:
- PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs;
- PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
- The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, direct marketing organizations, among other types of organizations;
- The PPP provides greater flexibility for seasonal employees;
- Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; and
- Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.
A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
- Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
- Has no more than 300 employees; and
- Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
To learn more, please visit: https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources
On March 25th, the Senate voted unanimously, 96-0, in favor of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the third bipartisan bill responding to the COVID-19 pandemic. On Friday, March 27, the CARES Act passed the House and was signed into law by the President. For more information and resources about the Coronavirus, visit walberg.house.gov/coronavirus.
CARES Act Grants in Michigan
In addition to significant financial aid and supply assistance from FEMA, substantial federal resources have been allocated in Michigan from the CARES Act, and other bipartisan Coronavirus response legislation signed into law by President Trump.
Hospitals and medical providers in Michigan have been allocated $3.1 billion from the Provider Relief Fund, established in the CARES Act.
Health and Human Services (HHS) has awarded $32.5 million in CARES Act funding to 39 health centers across Michigan to assist in combatting COVID-19.
Michigan has received over $3.8 billion from CMS through Medicare advanced payments.
Through the CARES Act, Michigan has also received over $315 million for expanding testing capability.
Through the Coronavirus Preparedness and Response Supplemental Appropriations Act, the Centers for Disease Control and Prevention (CDC) provided $21.6 million to the State of Michigan.
For information regarding federal efforts to procure personal protective equipment (PPE) for Michigan, please visit: https://walberg.house.gov/coronavirus
Under the Paycheck Protection Program (PPP), established in the CARES Act, the Small Business Administration issued over $16 billion in loans to 128,159 Michigan small businesses.
In addition to the Paycheck Protection Program, the Economic Injury Disaster Loan Emergency Advance has also approved over 84,000 loans in Michigan totaling approximately $4.4 billion.
Under the CARES Act, the State of Michigan, combined with eligible units of local government in the State that apply, will receive over $3.8 billion.
Millions of residents of Michigan also have received Economic Impact Payments, authorized under the CARES Act, up to $1200 for an individual. So far, the people of Michigan have received a total of over $8.5 billion.
Department of Housing and Urban Development made $288.5 million in COVID-19 funding available to Michigan via CARES Act authorizations.
Department of Labor has offered flexibilities and emergency administrative capacity expansion grants for unemployment insurance that are responsive to the difficulties many Michiganians are facing.
Department of Education announced an allocation under the Higher Education Emergency Relief Fund of the CARES Act of $372.6 million to support postsecondary education students in Michigan. Colleges and universities are required to utilize the funds to provide cash grants to students for expenses related to disruptions in their education due to the COVID-19 outbreak, including things like course materials and technology as well as food, housing, health care, and childcare.
Department of Education has also announced an allocation in The Governor’s Emergency Education Relief Fund (GEERF), authorized by the CARES Act, of $89 million for Michigan. This is an extraordinarily flexible “emergency block grant” designed to enable governors to decide how best to meet the needs of students, schools, postsecondary institutions, and other education-related organizations.
Another $389.7 million has been made available to Michigan through the Elementary and Secondary School Emergency Relief Fund of the CARES Act to ensure learning continues for all students.
Cares Act in the 7th District
Nearly $45 million was made available to providers in Michigan’s 7th District from the initial disbursement of the CARES Act Provider Relief Fund. While only $30 billion of the $100 billion from the CARES Act has been dispersed, President Trump has already signed legislation to appropriate another $75 billion in the Provider Relief Fund.
Two community health centers in Michigan’s 7th District received nearly $2 million in federal grants to respond to the Coronavirus, in the initial disbursement of funds. The Center for Family Health in Jackson County received $1,039,385 and the Family Medical Center of Michigan with locations in Lenawee and Monroe Counties received $839,300.
In addition to those disbursements, The Center for Family Health received another $561,199 and the Family Medical Center of Michigan received $372,574 to increase COVID-19 testing.
FEMA announced that the Emergency Food and Shelter Program (EFSP) National Board will allocate $200 million to communities across the country to assist organizations providing critical resources to people with economic emergencies, including our nation's hungry and homeless populations.
These funds were appropriated in CARES Act to ease financial hardship caused by the coronavirus (COVID-19) pandemic. Funding will go to organizations dedicated to feeding, sheltering, and providing critical resources to people experiencing, or at-risk of experiencing, hunger and homelessness.
Branch County – $21,898
Lansing/Eaton, Ingham Counties – $206,918
Hillsdale County: – $25,176
Jackson County – $80,622
Lenawee County – $52,228
Monroe County – $83,840
Washtenaw County – $163,597
The Department of Housing and Urban Development (HUD) will disperse new grants to the Jackson Housing Commission, Potterville Housing Commission, and Housing Services Mid-Michigan. The funding was authorized as a result of the CARES Act passed by Congress at the end of March to allow public housing agencies to have additional resources to slow the spread of COVID-19.
Grant Amounts to Area Colleges
Adrian College – $1,752,186
Jackson College – $3,892,134
Lansing Community College – $5,804,315
Monroe County Community College – $1,300,516
Olivet College – $1,315,786
Siena Heights University – $1,545,879
Spring Arbor University – $1,581,268
Washtenaw Community College – $4,968,890
What's in the CARES Act?
1.) Direct Payments to Americans
- Provides a one-time economic impact payment of $1,200 per individual, $2,400 per couple, and $500 per child. The full rebate amount is available for those with incomes at or below $75,000 for individuals, $112,500 for head of household, and $150,000 for married couples. Click here for answers to frequently asked questions.
2.) Assistance for Small Businesses
- Creates a Paycheck Protection Program for small employers, self-employed individuals, and “gig economy” workers to help prevent workers from losing their jobs and small businesses from going under. It provides 8 weeks of cash-flow assistance through 100 percent federally guaranteed loans to small employers who maintain their payroll during this emergency. Click here for more resources for small businesses.
3.) Expanded Unemployment Insurance
- Provides economic relief and much-needed support for workers by making a significant investment in unemployment benefits. It makes sure self-employed and independent contractors, like Uber drivers and gig workers, can receive unemployment during the public health emergency.
4.) Support for Medical Professionals
- Provides critical support to the hospitals and health care workers on the front lines, including funding to reimburse health care expenses and procure personal protective equipment (PPE), ventilators, and other medical supplies.
5.) Relief for Students, Renters, and Homeowners
- Provides direct financial relief to many student loan borrowers by pausing their monthly repayment requirements for six months with no penalty. Click here to learn more about student loan relief.
- Halts evictions for renters in properties with federally backed mortgages for 120 days.
- Prohibits foreclosures on any federally backed mortgages for 60-days, and allows borrowers affected by COVID-19 to shift any missed payments to the end of their mortgage, with no added penalties or interest, for 180 days. Click here to learn more about relief for homeowners.
How Does the CARES Act Help Small Businesses?
The CARES Act establishes a new Paycheck Protection Program which provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities. According to data from the Small Business Administration, more than 40,000 jobs in Michigan’s 7th District were retained as a result of the Paycheck Protection Program.
- For a top-line overview of the program CLICK HERE
- If you’re a borrower, more information can be found HERE
- The application for borrowers can be found HERE
- A list of eligible lenders can be found HERE
Funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.