House moves forward with new COVID-19 relief bill

The House of Representatives has passed a revised “Phase 4” COVID-19 stimulus bill by a vote of 214-207, the National Association of Lumber and Building Material Dealers reported.

The legislation totals $2.2 trillion and addresses several areas of COVID-19 relief including supplemental unemployment insurance, expansion of the employee retention tax credit, renewal of the Paycheck Protection Program (PPP), state and local government aid, and direct payments to individuals. The bill is $1 trillion less than the House’s first Phase 4 proposal passed last May. A full summary of the legislation is below.

All House Republicans voted against the legislation along with 18 Democrats. Senate Majority Leader Mitch McConnell (R-KY) opposes the House bill and it is not expected to receive a vote in the Senate. 

Negotiations between the White House and Speaker Nancy Pelosi (D-CA) took place throughout the past week but both sides are far apart on a final Phase 4 bill. There remain significant disagreements over employer liability protections, supplemental unemployment insurance, and financial aid to state and local governments. 

The NLBMDA has lobbied for months on additional COVID relief and continues to advocate for a number of key industry priorities including reduced supplemental unemployment insurance, employer liability protections, and additional funding for small business loans. 

Here is a summary of the Revised HEREOS Act:

• Restores the $600 per week Federal Pandemic Unemployment Compensation (FPUC) supplement benefits starting the week of September 6 and ending January 31, 2021.
• Increases the applicable percentage of qualified wages reimbursed through the employee retention and rehiring credit from 50% to 80%.
• Does not include employer liability protections.
• Requires OSHA to issue an enforceable standard within seven days to require all workplaces to develop and implement infection control plans based on CDC guidelines.
• Renews the Paycheck Protection Program (PPP):
• Creates three distinct set-asides for targeted relief for the smallest businesses, struggling non-profits, and second loans to the hardest hit businesses:
• At least 10% of remaining and future funding for loans to businesses with 10 or fewer employees, sole proprietors and the self-employed, and for loans less than $250,000 to businesses located in LMI areas.
• Up to 30% of remaining and future funding for non-profit organizations of all sizes and types, including housing cooperatives to be allowed to take first-time PPP loans, with strict limits on lobbying activity and a prohibition on using PPP proceeds to pay lobbyists.
• Up to 50% of remaining and future funding for the secondary PPP loan program that provides second loans to small businesses with less than 200 employees and a 25% reduction in revenue year-over-year due to the pandemic.
• Clarifies that a borrower can apply for forgiveness as soon as the covered period is over, their loan has been spent, and they have the documents to substantiate they can comply with the requirements of the program;
• Allows PPP money to be used for personal protective equipment (PPE);
• Creates an application processing priority for very small businesses;
• Places limits on businesses with more than one physical location; and
• Streamlined forgiveness of small-dollar loans.
• Includes $436 billion in aid to state, local and tribal governments.
• Provides $1,200 in direct stimulus payments to individuals.

The text of the bill can be found here. A one-pager on the legislation is here. A section-by-section summary is here.