Happy Tuesday Friends, Clients & Colleagues,
As always, I hope this Breaking New note finds you and yours well.
Here is a summary of the key provisions in the Senate HEALS Act proposal, released Monday night (Axios):
Unemployment benefits will be extended, but at 70% of an individual’s lost wages rather than the $600 weekly benefit Americans were receiving under the CARES Act. Unemployed Americans will receive a $200 flat weekly benefit until states are able to calculate the 70% targeted insurance. The $200 weekly benefit is in addition to state unemployment benefits.
The Paycheck Protection Program (PPP) will be extended. Small businesses with 300 or fewer employees that show a revenue loss of 50% will be able to apply for a second loan.
Stimulus checks will be doled out under the same guidelines as in the CARES Act. Direct payments of $1,200 will be available to individuals with a yearly income of up to $75,000.
Back to work child care grants is a key White House priority and is seen as a retention benefit for businesses.
Schools will get $105 billion, roughly $70 billion will go toward K-12 (K-12 schools that reopen will get more immediate access to the funds). $30 billion will go toward higher education. $5 billion will be set aside to give governors flexibility.
Widespread liability protection, which covers claims against a defendant caused by “an actual, alleged, feared or potential exposure to coronavirus.” It covers all alleged injuries that arise from conduct taking place between Dec. 1, 2019, and either the end of the coronavirus emergency declaration or Oct. 1, 2024.
State and local governments will not receive additional funding. Instead, the bill extends the time frame in which governments can utilize the $150 billion in funding from the CARES Act while also providing more flexibility — allowing some funds to be used to cover revenue shortfalls.
I hope that this information has been helpful. Be assured we will keep you informed with the latest details on this and future stimulus efforts.
We are committed to providing you with timely and relevant information for you to succeed in your business.
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Stay safe and healthy!
Warmest personal regards,
Jorge Luis Lopez, Esq.
Governmental Affairs Attorney