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Pandemic relief funding arrives in accounts after bill passes Dec. 27

After months of debate, Congress passed the COVID-19 Relief Package by a wide margin on Dec. 22, and President Donald Trump, after his own delays, signed the legislation Dec. 27.
The pandemic relief bill authorizes nearly $900 billion in coronavirus-related aid, which was part of an overall $1.4 trillion spending bill that will fund the federal government through September of 2021.
The COVID-19 aid package includes financial support and relief for U.S. residents and many small businesses, including farm operations.
The COVID-19 aid package provides a stimulus payment of $600 to any individual who earned less than $75,000, based on the adjusted gross income on their 2019 federal tax return.
Married couples earning less than $150,000 will receive a total payment of $1,200.
This is half of the amount that was paid in the federal stimulus payments under the CARES act last spring.
There will be an additional payment for every child that was claimed on the 2019 tax return.
These direct aid payments were expected to be made before the end of 2020, but after Trump’s delay in signing the legislation, many payments will be received in 2021.
Individuals earning more than $99,000 or married couples exceeding $198,000 would not be eligible for the stimulus payments. Payments are adjusted for income categories up to that level.
The legislation also extends supplemental unemployment benefits of $300 per week for 11 weeks through March 14, 2021.
A big portion of the latest coronavirus relief package, approximately $284.5 billion, will be directed to assist small businesses through another round of funding to reopen and strengthen the Payroll Protection Program (PPP) through the U.S. Small Business Administration (SBA). The PPP loans will be reserved for businesses with fewer than 300 employees that incurred at least a 25 percent loss of revenue due to COVID-19.
The PPP provisions allow for forgivable loans up to 2.5 times the average monthly payroll costs for the year. The maximum level for PPP loans will be $2 million, and PPP loans of less than $150,000 will have a simplified application process.
While specific details on the next round of PPP loans are not yet available, farm business will likely qualify for the PPP loans again, including farm operations that file taxes as sole proprietorships.
There are other provisions in the legislation that clarify eligible entities for PPP loans, eligible deductible expenses or PPP loan forgiveness, the loan forgiveness process for PPP loans under $150,000.

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