House Democrats recently introduced H.R. 6800, the Heroes Act, which would provide more than $3 trillion in coronavirus relief funding for individuals, businesses, and state and local governments. Senate Majority Leader Mitch McConnell, however, has advised the president that the next stage of relief spending must be under $ 1 trillion. As such, the Senate is not expected to approve the legislation without significant changes to the bill.
Recently, the National Lumber and Building Materials Dealers Association (NLBMDA) sent a letter to the federal government which included priorities for the LBM industry as the Senate and House debate inclusions in the Phase 4 relief package.
As the Phase 4 relief package is debated, the NLBMDA has broken down several of the notable provisions included in the current Heroes Act for the LBM industry. The Phase 4 relief package would expand Paycheck Protection Program (PPP) eligibility to 501(c)(6) organizations, would reverse Internal Revenue Services guidance to allow for deductibility of PPP and other small business loans, would carve out 25% of PPP funds for specifically small businesses with fewer than 10 employees, and would remove the requirement that 75% of PPP loan proceeds be used for payroll
The Phase 4 relief package would also add flexibility for PPP borrowers by extending the eight-week period to 24 weeks and extending the covered period from June 30 to December 31. The package would include an additional $10 billion for coronavirus emergency grants through the Economic Disaster Loan (EIDL) program and mandate that the Federal Reserve provide at least one low-cost loan option that small businesses are eligible for that does not have a minimum loan size.
The Heroes Act would also provide a 50% refundable payroll tax credit for qualified fixed costs for employers subject to closure by reason of the coronavirus and require OSHA to issue an enforceable standard within seven days to require all workplaces to develop and implement infection control plans based on CDC expertise.
The U.S Chamber of Commerce said it expects Congress will be able to wrap up work on the Phase 4 relief bill by July 4.
