New House Heroes Act

The new House Heroes Act has several provisions that may be of interest:

1. The bill also extend SBA support to 501-C organizations, including chambers of commerce, local tourism bureaus, trade associations, and professional organizations.
2. The bill does not add additional funding for the Paycheck Protection Program for small businesses. But it does extend the program to Dec. 31 from June 30 and make other changes regarding which firms are eligible and how loan proceeds can be spent. The loans become grants if they’re spent on payroll and certain expenses within eight weeks after they’re received to keep workers employed.
3. Addresses the concern of restaurants owners and other firms eight weeks wasn’t practical because they won’t be reopened or back to 100% during that time, and the House bill would extend the period to 24 weeks after a loan is received or Dec. 31, whichever is earlier. The bill would also allow firms to rehire workers by the end of the year rather than by June 30 to qualify for loan forgiveness.
4. To ensure the smallest firms get funding, the House bill sets aside at least 25% of remaining funds for businesses with 10 and fewer employees -- and devotes any returned or canceled loan amounts to those firms -- plus 25% for nonprofits. It would also provide an additional $10 billion for grants through the separate SBA Economic Injury Disaster Loan program.
5. The bill would greatly expand the Employee Retention Tax Credit that gives employers tax breaks for keeping workers on the payroll. The new version would give employers a credit worth up to $12,000 per employee per quarter, an increase of $5,000 per worker for the remainder of the year.
6. The bill makes a technical correction to the treatment of forgiven Paycheck Protection Program loans to small businesses by allowing companies to deduct the payroll, rent and other costs that the PPP loans covered. The IRS had ruled that those expenses are not deductible if the loan is forgiven.

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