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Senate unanimously approved "Phase 3" of COVID-19 relief legislation | $2 Trillion in total stimulus spending

Senate unanimously approved "Phase 3" of COVID-19 relief legislation | $2 Trillion in total stimulus spending

Late last night, the Senate unanimously approved "Phase 3" of COVID-19 relief legislation for businesses, workers, and the American health care system. The bill now moves to the House for approval, where it is expected to be taken up for a vote on Friday.
 
The Chamber applauds Senators John Cornyn and Ted Cruz for their efforts to help businesses and the American people during this unprecedented time. We also would like to thank the dozens of local business people who signed onto our letter supporting passage of Phase 3.

Below are the highlights of the "Phase 3" support legislation that are most important to many of you right now:
 
$2 Trillion in total stimulus spending
 
$350 billion small business (fewer than 500 employees) loan fund
  • Up to $10 million in loans per business that is meeting payroll for the next eight weeks
  • Expenses for payroll, mortgage interest/rent, and utilities are forgivable
  • Can defer 2020 payroll taxes to Dec. 31, 2021 (50%) and Dec. 31, 2022 (50%) 
  • Changes to SBA's Economic Injury Disaster Loans for payroll, supply chain disruption, mortgage/lease, etc. (available to non-profits)
$500 billion business loan fund for larger corporations (more than 500 employees)
  • Loans and loan guarantees
  • Oversight will be provided by a Treasury inspector general
  • Loans will not last more than five years and are not forgivable
  • $50 billion for passenger airlines and $8 billion for cargo air carriers 
  • Businesses receiving loans must maintain existing employment level as of March 24
$300 billion in cash payments to Americans
  • $1,200 cash payments per person earning less than $75,000, phased out through $100,000 of income
  • $2,400 cash payment for couples filing jointly earning less than $150,000, phased out through $200,000 of income
  • Additional $500 per child 
$250 billion for unemployment insurance
  • Increases the maximum unemployment insurance payment by $600 per week for four months
  • Extends the duration of unemployment insurance from 26 weeks to 39 weeks to coincide with the end of 2020
  • New guidelines would retroactively be applied to January 27
  • Extends to private contractors and gig economy workers 
  • No one week waiting period (federal government covers cost for states that waive the one-week waiting period)
$150 billion for state, local, and tribal governments to aid their respective responses to COVID-19
 
$140 billion for hospitals and medical infrastructure necessary to combat the virus (masks, ventilators, accelerated workforce training for medical professionals, COVID-19 testing, CDC funding, etc.)
 
Increases from $30 billion to $50 billion the amount the Agriculture Department can spend on its bailout program

Changes to sick leave
  • Paid FMLA leave capped at $200/day and $10,000 in aggregate
  • Paid sick leave is capped at $511/day and $5,110 in aggregate (drops to $200/day and $2,000 in aggregate for sick leave taken to care for a family member or due to school closure)

Other assistance for individuals
  • Waives the 10% early withdrawal penalty from retirement accounts for COVID-19 related distributions up to $100,000, retroactive to January 1
  • Guarantees COVID-19 testing will be free of charge to patients 
  • Student loan payments, principal, and interest can be deferred through September 30, 2020, without borrower penalty
A "Phase 4" bill is also a possibility sometime in the future. As always, the Chamber will keep you and your business informed regarding important public policy developments. For additional information and resources related to COVID-19, visit our resource page here.

 

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