November 24, 2020

Republican Stimulus Bill Offers Unemployment, Small Business Aid

Weekly supplemental unemployment benefits would resume at $300, down from $600 in the CARES Act that was approved in the spring. The extension of the Paycheck Protection Program for small businesses will cost $258 billion, according to a summary of the bill.

The bill doesn’t include a second round of $1,200 stimulus payments for many lower- and middle-income individuals — a provision that both House Democrats and Senate Republicans had backed in prior versions of stimulus legislation.

A tax break for charitable donations would be expanded to $600 for all taxpayers in 2020. The CARES Act included a $300 deduction for individuals, even if they don’t itemize their tax returns, which is typically a requirement.

Small businesses could get loans equal to 2.5 times their average monthly payroll costs, with a maximum loan value of $2 million, the legislation showed. It also provides the IRS with more resources to audit companies that take PPP loans.

As for schooling, the legislation would also create a two-year tax break for donors who contribute to scholarship funds that give students money for private school and homeschooling costs.

The bill would reduce liabilities for businesses stemming from the coronavirus pandemic as well as provisions meant to boost rare earth minerals mining in the U.S. It would convert a $10 billion loan to the U.S. Postal Service approved in the spring to a grant and fund coronavirus testing. The $105 billion for education is complemented by funding for private-school students.

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