The New Stimulus Bill Begins

Congress returned to Washington today to take up plans on a new stimulus bill. Lawmakers on either side of the aisle agree that something needs to be done to stem the effects of the C-19 Pandemic. Many of the benefits from the first three bills are ending as a matter of law at the end of this month. Some of the items under consideration are the following…
– Another round of stimulus checks to consumers is being considered. This time the list of potential recipients would be narrowed based upon income considerations.
– An extension of the additional $600 per week in unemployment benefits is also on the table. Some are saying that they are trying to extend this benefit till next January.
– Liability protections for businesses is another big item. Businesses are facing legal actions as a result of this pandemic.
– Rent and mortgage assistance is another thing. Evictions have been stopped as a matter of law with The CARES Act until the end of this month. They are talking about extending these provisions into next year.
– Simplifying the PPP Loan forgiveness process has been championed by the business and banking communities. It would allow business owners who received a loan below the $150K mark, to simply send in a one page certification that the money was spent properly under The CARES Act’s Provisions. Many are saying that it won’t be done, because it will open the government up to unprecedented amounts of fraud given the many individuals who did not use the money properly. One of our clients used the money to pay off their home.
– Hazard premium pay for front line workers is another item. I certainly hope that this means me and my staff get hazard pay. That would be very nice.
– Investments in communities of color is another potential objective.
– Another round of PPP Loan funding is also on the table. The P4 as the new bill is called, which allows another round of funding, has been stalled in committee for the past two months. With many states shutting down once again, this may become a necessity for many entrepreneurs.
– Additional funding for state and local government is also possible. Chicago is facing a $700M shortfall in its fiscal budget. With things being shut down, revenues from sales and other taxes are down significantly. Of course, no one is talking about the fact that a lot of the short fall is due to pension obligations.
As you can probably imagine, given the ideological differences that the two parties embrace, this is probably going to shape up into quite a grudge match. Normally, when there is this much on the table with these sorts of deep rooted differences, we would expect Washington to do what it does best. In other words, we would expect them to do nothing.
But many provisions are coming to an end on July 31st and Congress is set to recess for the entire month of August. As such, they will probably get something done, even if it is just a stop gap measure.
I will continue writing on this as it progresses…
Let me leave you with this one thought…
My communication from last Friday afternoon received several favorable comments. It also received some unfavorable ones.
What I am trying to do, is to get many of you to think creatively about how you can survive this thing. If any of us thought that we would be in and out of this in a matter of months, I’m sure that we have all banished that idea. As many states return to shut down orders, many are realizing that we will be in this thing for the foreseeable future.
As such, many of your existing business plans, are just not workable. This will require you to change.
I’m no blushing virgin when it comes down to Entrepreneuring. I’ve been at this for 29 years. I’m just as set in my ways as the rest of you.
But what does that mean? Does it mean that I should just suffer through this and maybe go out of business because I am unwilling to try new things? Does it mean that I stay shut down, and pray for a miracle? Does it mean that I should sit in my house watching cable, getting more afraid of the future as this thing progresses?
Or does it mean that I should adapt?
My business has had to change a lot of things in the past few months. The biggest one was providing work on the PPP Loan forgiveness application. I initial priced it based upon the 8 week law. Then they came out with the 24 week law, which meant that I was going to do nothing but lose money on the work because in many instances I would need to do payroll work on twenty-four weeks instead of just eight. Now they are talking about just forgiving it altogether. If that passes I will need to either do credits of refunds on all of the work that we have already done.
I never said that this was going to be easy. What I am saying is that you need to try.
Don’t let fear make your decisions for you. Make the changes that are necessary for you to survive, and do them knowing that we are here to help.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. If there is anything that you need, whether you are a current client or not, you have but to ask. I’m here and I remain,
Chris Amundson
Accounting Solutions Ltd.
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