What you need to know about a potential second round of stimulus

UPDATE: The president has postponed negotiations over a second round of stimulus until after the election, however, given the dynamics of an election year, remember that things can change rapidly and nothing is final until it's really final! At PADGETT BUSINESS SERVICES®, we're keeping a close eye on these conversations to make sure our offices and clients have the information they need. 

Negotiations are moving forward between the Trump Administration and Democratic leaders in the U.S. House of Representatives, making a second round of economic stimulus more possible than it has been in recent weeks. On Wednesday night, the administration shared its revised proposal with Congressional leaders.

While no agreement has been reached yet, the two sides appear to be moving closer to one, which would be good news for small businesses across the country. As a small business owner, you’re probably wondering how this second batch of stimulus funding would impact you.

Here’s what we know so far:

  • The popular and successful Paycheck Protection Program (PPP) would receive an infusion of $160 billion in new funding to help businesses impacted by the economic turndown caused by the COVID-19 pandemic, including $10 billion in targeted funds to support lending to minority-owned businesses, satisfying a key stipulation from Democrats.
  • The administration also is offering additional funding for the hospitality industry, proposing $120 billion to assist restaurants, hotels, entertainment venues and the airlines. This is a bit shy of the $120 billion House Democratic leaders had already proposed solely for the hard-hit restaurant industry, in addition to the $38 billion they allocated for entertainment venues and airlines.
  • The Trump administration also has suggested various proposals to assist childcare providers and farmers, plus rental and mortgage assistance and expanding paid leave for workers with children and adult dependents. These recommendations are smaller in scope and size than the Democrats’ revised proposal but do move the two parties closer on these issues.
  • Both sides appear to support a second round of $1,200 checks going out to Americans.

Now, none of this has been agreed upon just yet.

Given the tumultuous nature of the election season and the upcoming fight in the U.S. Senate over the Supreme Court nomination, there are countless forces working against any sort of agreement. Additionally, should the Trump administration and House Democratic leaders reach a compromise, there’s the chance the Senate might nix the deal altogether.

PADGETT BUSINESS SERVICES® has long enjoyed strong relationships with leaders from both political parties at various levels of government, enabling us to keep close tabs on pending legislation and policy tweaks, and we’re working hard to stay abreast of the ongoing negotiations. We’re closely monitoring these discussions, and should any agreement be reached, we’ll be ready to provide the necessary updates, support and service our small business customers have come to expect and appreciate.

If we can be of any assistance for your small business with regard to tax planning, PPP loan forgiveness or any other advisory need, don’t hesitate to reach out to an office today.

Do you have the support you need to manage your small business bookkeeping? Contact us to schedule an appointment to speak with a local small business advisor.