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After months of failed negotiations, the House/Senate/White House agreed on a COVID-19 relief bill on Sunday, December 20. The House and Senate passed the bill on December 21 and White House officials stated the President will sign it.

This piece of legislation—more than 5,000 pages—combines the year-end government funding bill with an almost one trillion-dollar COVID-19 bill. According to NAW, the Association of Wholesaler-Distributors, parts of the bill affecting the business community have been resolved predominantly satisfactorily.


  • Second draw PPP loans are permitted, provided the business can demonstrate a revenue loss of at least 25%;
  • Full deductibility of expenses paid with a PPP loan are restored, despite Secretary Mnuchin’s opposition to that outcome;
  • Additional expenses have been added to those that qualify for PPP loan forgiveness;
  • The employee retention tax credit is increased and extended into 2021; and
  • The barrier between the ERTC and PPP has been removed, so a company can take both the PPP loan and claim the ERTC provided that the funds are not used for the same purpose.

The new legislation would give the Small Business Administration (SBA) only 10 days from enactment of the bill to write rules for the revamped small business rescue provisions. The short deadline reflects a sense of urgency to get help to struggling employers, but the timeline — over the holidays and in the midst of a presidential transition — raises concerns. NAHAD will continue to monitor new federal agency developments and send you critical updates as they occur.

You can read a full summary of the PPP provisions by clicking HERE.

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