top of page

New Stimulus Package

On December 27th, Congress passed a $900 billion coronavirus aid package, included in the Consolidated Appropriations Act 2021. The bill is very detailed. We are keeping our eyes open as more information and guidance becomes available.

Below is a summary of the key provisions of the bill:

  • Simplified PPP Loan Forgiveness Application

PPP Loans – both new and existing – up to $150,000 now have a simpler and easier forgiveness application.

  • EIDL Advance will not reduce PPP forgiveness.

Originally, the EIDL advance of $1,000 - $10,000 that businesses received reduced the amount of potential PPP loan forgiveness. Essentially, the advance was only a loan for companies that also received the PPP. The advance will now be treated as a grant in addition to full PPP loan forgiveness. Companies that have already received PPP loan forgiveness will be able to have their forgiveness amount adjusted to include the EIDL advance amount.

  • Increase in Original PPP Loan Amount for Change in Rules

Companies that applied for a lower amount on their PPP loan than they were eligible for because later guidance made more funds available can request the additional PPP funds. The SBA is expected to give more guidance regarding which entities fall into this category.

  • PPP Second Draw

Companies that experienced a 25% drop in revenue during any quarter in 2020 compared to the same quarter in 2019 may be eligible for a second PPP loan. The loan amount will be equal to 2.5 months of payroll for most industries, except restaurants and hotels, which will receive 3.5 months of payroll.

  • Extension of Paid Leave Credit

FFCRA and FMLA paid leave credits, which were originally set to expire on December 31, 2020, are now extended through March 31, 2021.

  • Business Meals Deductions

Business meals were previously 50% deductible. For 2021 and 2022, business meals purchased from restaurants are 100% deductible.

  • Charitable Deduction Limitation Suspension Extended to 2021

Charity contributed in 2020 and 2021 can reduce up to 100% of taxable income and is not limited by a percentage of adjusted gross income, as it was in the past.

  • Faster depreciation for Real Estate Companies that elected ADS

Real estate companies that elected to use ADS depreciation in order to avoid the 163(j) interest limitation may be able to claim more depreciation for residential property.

  • PPP is now fully tax free

Prior IRS guidance suggested that expenses paid with PPP funds were not deductible. The new law clarifies that the PPP funds received are tax-free, and the expenses are deductible.

  • Stimulus Payments

The federal government will send $600 per person, including children. The process and phase-out will be similar to the first round of stimulus payments, but with a slightly lower maximum income where the payments get phased out. (A new bill passed in Congress, but not approved by the Senate yet, increases the payment to $2,000 per person.)

  • Expansion of Employee Retention Credit

The original Employee Retention Credit was limited to $5,000 and was not available to employers receiving PPP loans; thus, this credit was not a good option for most employers, as the PPP provided more funds. The new law allows a credit for PPP loan recipients retroactively. It also raises the maximum credit to an additional $7,000 per quarter for the first two quarters of 2021. Eligible entities are companies that (1) experienced a 50% reduction in revenue during any quarter in 2020, or a 20% reduction for a quarter in 2021, compared to 2019, or (2) for the period that a company had a full or partial suspension in operations due to a government order.

100 views7 comments

Recent Posts

See All

Employee Retention Credit Alert!

As you may know, there have been three major stimulus bills, included and subsequently enhanced in these bills, is the Employee Retention Credit. The Employee Retention Credit is now capped at 5K per


As a premier creative web design agency, Web Designs Boost we provide unparalleled services and innovative solutions aligned with the latest industry standards, ensuring a resounding impact for your brand.


We at Tribrid have years of experience working with brands across all niches be it beauty, healthcare, tech, etc. Our years of experience combined with custom packaging supplies the latest printing technology will allow you to get the best design and packaging solutions out there for product boxes wholesale. So what are you waiting for? Book a call or request a quote to get started today.


Tribrid Packaging is the premier source for high-quality, custom boxes, packaging and packaging supplies. Our team of experts can help you custom popcorn boxes with all your packaging needs from design to production. We have the latest in-house machinery and processing technology, as well as well-trained staff to produce high-quality cardboard packaging products.


At Penelope's Glass Artistry, we're not just in the business of selling glass art; we're on a mission to transform the way you perceive and experience art. Our Penelope Glass Art journey is a testament to the passion, creativity, and craftsmanship that go into every piece we create.


Gone are the days when introducing potential partners to each other was a job done by parents only. In recent years, matrimonial sites have made it easier for individuals to find a compatible partner. Along with helping you to browse through different profiles, they also help you to connect with different people. Second Marriage Solutions However, second marriage is still not an easy task for both men and women in Pakistan.

bottom of page