Congress Passes $900 Billion Stimulus Package

Congress has passed another historic measure to the tune of $900 billion to assist with COVID relief and help stimulate the economy. They secured critical funding and policy changes to help small businesses, including minority-owned businesses, and nonprofits recover from the pandemic. This deal includes over $284 billion for first and second forgivable Paycheck Protection Program (PPP) loans, dedicated set-asides for very small businesses and lending through community-based lenders like Community Development Financial Institutions and Minority Depository Institutions. Importantly, they also included PPP eligibility for 501(c)(6) nonprofits, which, depending on the rules may make trade associations eligible for some PPP funding.

This is a lifeline for millions of Americans. With regards to unemployment insurance, Congress brought back the enhanced federal unemployment insurance bump, which expired in July. This bill provides an additional $300 per week for all workers receiving unemployment benefits, through March 14, 2021. This bill also extends the Pandemic Unemployment Assistance (PUA) program, with expanded coverage to the self-employed, gig workers, and others in nontraditional employment. The extension was critical in preventing as many as 14 million Americans from losing this economic lifeline at the end of the year. Additionally, the bill increases the maximum number of weeks an individual may claim benefits through regular state unemployment plus the PEUC program, or through the PUA program, to 50 weeks.

With regards to direct payments, Congress will provide an additional round of Economic Impact Payments of $600 for individuals making up to $75,000 per year and $1,200 for couples making up to $150,000 per year, as well as a $600 payment for each child dependent. This means a family of four will receive $2,400 in direct payments. The bill also contains a provision, which is retroactive to the CARES Act, to expand these direct payments to mixed-status households, importantly providing immigrant families across the country with access to this financial relief.

Also included in the bill is $20 billion for new Economic Injury Disaster Loan (EIDL) Grants for businesses in low-income communities, $3.5 billion for continued SBA debt relief payments, and $2 billion for enhancements to SBA lending. The bill also importantly extends and expands the refundable Employee Retention Tax Credit (ERTC), which was established in the CARES Act. The extension of this tax credit will help keep additional U.S. workers on payroll and more small businesses and nonprofits across the country afloat.

The bill passed through both houses of Congress overnight on Monday, December 21. The President is expected to sigh the bill as soon as he receives it.

Here are some of the Top Line numbers on the new COVID Relief Bill:

• Direct Economic Relief for Workers and Families: $286 billion ($120 billion in Unemployment Insurance and $166 in Economic Impact Payments):
• Small Business Help (PPP): $325 billion
• Support for Community Development Financial Institutions and Minority Depository Institutions: $25 billion
• Transportation: $45 billion
• Vaccines, Testing and Tracing, Community Health and Health Care Provider Support: $45 billion
• Broadband Services: $7 billion
• Schools: $82 billion
• Rental Assistance: $25 billion

The RV Industry Association's Government Affairs team will have a more detailed analysis of the impact on the RV industry in the coming weeks as the 5,600 page combined government funding bill and COVID relief bill are reviewed.