First, I wanted to go over a brief procedural matter. Because so many of you have some fairly diligent IT folks protecting you from spam and malicious emails, a great number of the bulk emails we send out with attachments never make it to you. To this end, we now post our updated wage sheets on our website in the labor relations resources tab rather than sending them out to you. It’s in the members-only section of the site, so feel free to email me if you need the password. We do have some rate changes that have already happened and some that are happening in January. It’s probably worth a visit to our site to make sure you’re up to date on any contract changes that might be occurring.
Secondly, you may have noticed there’s been a slightly contentious bill going through congress over the last…forever. If you have ever wondered why something like takes so long to do, it's because of us. More specifically, it's because of special interest groups like us who, on occasion, have to leverage our previous support of members of congress in order to insert provisions into omnibus legislation where we can.
In this specific instance, our Chapter specifically joined over 500 other signatories on a concerted effort to amend the Coronavirus Relief Plan to change some of the provisions of the Paycheck Protection Plan to better protect our interests. Here is what we’ve been working on:
Clarification of Tax Treatment of Paycheck Protection Program Loans: The bill specifies that forgiven Paycheck Protection Program (PPP) loans will not be included in taxable income. It also clarifies that deductions are allowed for expenses paid with proceeds of a forgiven PPP loan, effective as of the date of enactment of the CARES Act and applicable to subsequent PPP loans. This same tax treatment also applies to EIDL grants and certain loans and loan repayment assistance.
Extension of Paid Leave Credits: The bill extends the refundable payroll tax credits for paid sick and family leave that were established in the Families First Coronavirus Response Act through March 31, 2021.
Federal Pandemic Unemployment Compensation (FPUC): Provides enhanced unemployment insurance benefits through the FPUC. It provides an additional $300 per week to supplement all state and federal unemployment benefits, starting after December 26, 2020, and ending March 14, 2021.
Return to Work Reporting Requirements: for states to have a place for employers to report when someone turns down a job and to notify claimants of the requirement to accept suitable work, unless there is good cause for refusal.
Provides a second draw PPP forgivable loan: For the hardest-hit small businesses and non-profits with 300 or fewer employees and that can demonstrate a loss of 25% of gross receipts in any quarter during 2020 when compared to the same quarter in 2019.
Expands PPP: eligibility for 501(c)(6) nonprofits, including tourism promotion organizations and local chambers of commerce.
Simplifies the forgiveness process for PPP loans of $150,000 and less.
Repeals the requirement of deducting an EIDL Advance from the PPP forgiveness amount.
Regrettably, none of this is finalized just yet, but we are very, very close and I anticipate all of these provisions to be included in the final version of the law.
Hopefully, this effort will help those of you who have been adversely affected by some of the guidance which has emerged from the SBA well after you applied for your loans.
Thanks for your time, and have a wonderful evening everyone.