Dear WH&LA Members,
Last night both chambers of Congress passed a new bill that will give our industry a much-needed round of PPP funding. Thank you to everyone who contacted your elected officials to help make this happen. Per AH&LA, many of the items that we lobbied for in the package were included:
- $284 billion in 2nd round forgivable PPP loans which includes an increase for individual loans from 250% of average monthly payroll to 350% of average monthly payroll for hotels & restaurants
- Expanded eligibility for 501 C6 nonprofits
- PPE costs as a new allowable expense;
- Simplified PPP loan forgiveness application for loans under $150k;
- Ability to deduct expenses paid for with forgivable PPP loans;
- One year extension for Troubled Debt Restructuring (TDR) relief (Section 4013 of the CARES Act).
- Allows banks to continue to work with borrowers to gain additional forbearance and debt relief through 2021;
- 100% business meal deductibility for 2021 and 2022;
- Expanded and enhanced Employee Retention Tax Credit;
- Five-year extension of the Workforce Opportunity Tax Credit (WOTC)
While there is a lot to work out in this package and more aid will be needed in the future, we are certainly happy to see that many of our members will be getting the aid that is desperately needed. While we don’t anticipate the funding to run out as quickly as the first round of PPP, and we don’t yet know when banks will be able to start accepting applications, you may want to consider reaching out to your lender now to let them know if you are likely interested in applying.
We’ll continue to monitor the situation and let you know as we learn more.
Kind Regards,
Bill Elliott, CAE
WH&LA President & CEO
