Good Morning Everyone,
I hope you all had a great weekend.
Federal Resources:
While the PPP is no longer accepting new applications (the application deadline was on August 8, 2020), the EIDL and Main Street Lending Programs are still open and accepting applications for eligible businesses.
Link to apply for the EIDL visit:
https://www.sba.gov/funding-programs/disaster-assistance.
Link to additional information for the Main Street Lending Program:
https://www.federalreserve.gov/monetarypolicy/mainstreetlending.htm.
In addition, Senator Lee has introduced an amendment to improve the MSLP to better address the financial needs of businesses and banks as part of COVID-19 relief measures. The Main Street Lending Program Proliferation and Promulgation Act, or MSLPPP would make simple tweaks to ensure the MSLP works for businesses by providing banks the option to offer more generous terms. For additional information on the MSLPPP, please click on the following link:
https://www.lee.senate.gov/public/_cache/files/6ad8d1c5-6bf4-4230-816c-7f6b8bb6c595/mslppp-one-pager-cf-js-cw.pdf.
Executive Order:
On Saturday, August 8, 2020, President Trump signed Executive Orders to defer payroll taxes and replace expired unemployment benefits.
Deferring Payroll Tax Obligations
President Trump’s Executive Order deferred employee-side payroll tax from September 1 - December 31, 2020. This is on the 6.2% of earnings that is the old-age, survivors, and disability insurance tax. Payments for those making up to approximately $100,000 are deferred — NOT FORGIVEN. Businesses may still need to pay the sum of deferred tax at the start of 2021. The Treasury will release further guidance as to business owners’ obligations in the coming days. For more information, please visit:
https://www.whitehouse.gov/presidential-actions/memorandum-deferring-payroll-tax-obligations-light-ongoing-covid-19-disaster/.
Unemployment Insurance
Under the Executive Order, expanded unemployment insurance benefits continue from August 1 to no later than December 27, 2020. Workers can receive $400 a week in supplemental unemployment insurance of which $100 comes from state matching. States can receive some federal disaster funds to help meet the matching requirement. The funding comes from the Department of Homeland Security’s Disaster Relief Fund, with $44 billion set aside for unemployment insurance. For additional information, please visit:
https://www.whitehouse.gov/presidential-actions/memorandum-authorizing-needs-assistance-program-major-disaster-declarations-related-coronavirus-disease-2019/.
If you have any questions, comments or concerns, please do not hesitate to reach out!
Have a great day!
Justin Anthony
Business Outreach Director
US Senator Mike Lee
(202) 603-4617
