Biden signs Covid-19 relief bill extending temporary regulatory relief
On March 11, President Biden signed the American Rescue Plan Act of 2021 (the Act), which will, among other things, extend certain emergency powers and temporary regulatory relief contained in the CARES Act to deal with the continuing impact of the Covid-19 pandemic. Under a section titled “Committee on Small Business and Entrepreneurship,” the law will provide an additional $ 7.25 billion for the Paycheck Protection Program (P3), expand the eligibility of certain entities to non-profit making loans covered under the PPP and will modify certain aspects of the program allowing certain companies to take out a second loan. However, the law does not actually extend the PPP, which is currently due to expire on March 31 (covered by InfoBytes here). The law also allocates nearly $ 10 billion through the Homeowners Assistance Fund to enable eligible entities to provide direct assistance for mortgage payments, property insurance, utilities and other related costs. housing to help prevent defaults, defaults and foreclosures. In addition, a provision for fair housing activities provides $ 20 million “to ensure that fair housing organizations have additional resources to respond to inquiries, complaints, investigations, and education and outreach activities. in equitable housing, as well as the costs of providing or adapting services, during or in connection with the Coronavirus pandemic. “In addition, the law provides $ 15 billion for advance payments of loans in the event of economic disaster (EIDL), including $ 5 billion for additional targeted EIDL advance payments for the hardest hit.
In addition to providing Covid-19 relief, the law also includes, among other things, an article that changes the treatment of student loan forgiveness. Specifically, Section 9675 will exclude from gross income any amount of student loan debt that is changed or discharged (in whole or in part) after December 31, 2020 and before January 1, 2026. The tax exemption will include federal taxes , private and institutional loans. According to a Press release issued by Senators Bob Menendez (D-NJ) and Elizabeth Warren (D-MA), the provision is intended to “ensure[e] borrowers with fully or partially canceled debt don’t face thousands of dollars in surprise taxes.