FEDERAL ACTIVITY
Paycheck Protection Program (PPP): $284 Billion Made Available to Businesses Struggling from COVID-19 Pandemic
Included in the $900 billion COVID-19 relief package signed into law on Dec. 28, 2020, was $284 billion in PPP relief for struggling businesses. While the PPP has already distributed $525 billion through more than 5 million loans, Congress has re-opened the program with these fresh funds for first-time and second-time applicants. The Small Business Administration (SBA) has issued new guidance that outlines eligibility for applicants. For NKBA members interested in a applying for a second PPP loan, a borrower is generally eligible for a Second Draw PPP Loan if: the borrower has previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses; has no more than 300 employees; and can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020. Please review the SBA’s website for all pertinent PPP information.
For NKBA’s Canadian members, the PPP equivalent — the Canada Emergency Business Account (CEBA) loans — have also been opened up for first-time applicants to apply for a second loan of up to $20,000. Please note that the Canada Revenue Agency confirmed the forgivable amount of a CEBA loan must be included as income and is taxable in the year you received it.
Biden Administration Proposes Additional COVID-19 Relief Bill Totaling $1.9 Trillion
With a $900 billion COVID-19 relief package signed a month ago by President Trump, the new Biden Administration is seeking another package – this time with an additional $1 trillion in funds. Following a similar framework of prior relief legislation, this proposal includes up to $1,400 direct payments to eligible Americans, addresses unemployment benefits and extensions of eviction and foreclosure moratoriums, and funding for COVID-19 testing. Additionally, included in this proposal is increasing the federal minimum wage to $15 an hour and $350 billion in direct aid to state and local governments – both sticking points of prior relief packages in the Senate. However, with Democrats taking control of the Senate majority with victories in Georgia, these legislative proposals may have a higher chance of being included in the final relief package.
STATE ACTIVITY
States Convene for the Start of New Legislative Sessions
With the onset of the new year, state legislatures have begun convening across the country. Impacted by the COVID-19 pandemic, many state legislatures will be meeting virtually or through conference calls rather than in their normal settings in state capitals. At least 28 states adopted or enacted measures to allow for remote participation or voting by members in floor sessions or committee meetings. All 50 state legislatures will be in session for part, or all, of 2021. If you have any concerns about legislation in your state, please feel free to contact NKBA’s Government Relations Specialist, Steven Campeau, at scampeau@nkba.org.
South Carolina Legislature Introduces Tax on Services Bill
South Carolina House Bill 3392 was pre-filed by Representative Tommy E. Pope on Dec. 9 and officially introduced when the South Carolina Legislature convened on Jan. 12. The bill addresses South Carolina’s sales tax, its rate, and expansion to include various services including, but not limited to, interior design, residential remodeling and contracting services. If implemented, the tax would cost clients additional dollars to use industry services and dissuade some people from using a kitchen or bath designer or other industry professional as part of their renovation projects, resulting in a potential loss of business to NKBA members. As many states face budget shortfalls due to the COVID-19 pandemic, it is expected that legislatures will seek additional sources of revenue to offset these shortfalls, including potentially pursuing such tax on service (TOS) bills. NKBA will monitor these bills on behalf of our members and inform members of any movement on these bills that may impact the kitchen and bath industry.
COVID-19 State Updates and Available Resources
To keep current on what individual states are doing to combat COVID-19, this interactive map, online platform and resource center might be of interest. The interactive map shows all COVID-19-related legislative activity that each state has enacted, while the online platform and resource center provide important information related to COVID-19.
CONTACT INFORMATION
Federal and State Legislative Contacts
Don’t forget to contact your Federal and State Legislators for government information and resources. Legislative staff are available to answer any questions on legislation, or walk you through governmental processes.
NKBA Legislative Contact
NKBA will monitor relevant legislative developments at the state and federal levels, and, where appropriate, provide information to members concerning material issues and developments — including laws and regulations that might impact the kitchen and bath industry. If you have any questions or comments on legislation, please reach out directly to Steven Campeau, NKBA’s Government Relations Specialist, at scampeau@nkba.org.
NOTE: NKBA is providing this material for general information only. This information does not constitute the provision of legal advice, tax/investment advice, accounting services or professional consulting of any kind, nor should it be construed as such. NKBA is not a lobbying organization and does not have a Political Action Committee (PAC). Resources such as this are meant solely for informational purposes.
