By Rolando Garcia, CPA, JD – Shareholder

President Joe Biden has announced his plan to provide additional aid to Americans struggling in the wake of the COVID-19 pandemic. This proposed plan would deploy more than $1.9 trillion in relief to businesses, individuals and governmental entities.

Here is a quick summary of the key provisions of the proposed plan:

  • Offer $15 million in small business grants.
  • Complement the Paycheck Protection Program with an additional $175 billion in low-interest loans for small businesses and entrepreneurs.
  • Put funding in place to standardize workplace safety measures to protect employees from the coronavirus.
  • Restore Emergency Paid Leave Program through September 2021, offering 14 weeks of paid sick and medical leave for pandemic-related reasons.
  • Distribute $1,400 direct stimulus payments to individuals.
  • Raise the federal minimum wage to $15 per hour, from $7.25.
  • Provide hazard pay to frontline essential workers with back pay for 2020.
  • Extend and increase unemployment benefits to $400 a week through September 2021.
  • Modify child tax credit in 2021 to be fully refundable and increase credit to $3,600 for children younger than six and $3,000 for others until age 17.
  • Increase earned income tax credit to $1,500 for those without children.
  • Support health care initiatives with additional funding for coronavirus-related efforts.
  • Request reduced health insurance premiums and expand the Affordable Care Act’s tax credit.
  • Provide $170 billion toward education and stabilization fund.
  • Set-up emergency funding to strengthen IT infrastructures in federal government.

Doeren Mayhew will keep you updated as the proposed plan progresses through the legislative branch after the President is sworn in. In the meantime, should you have any questions related to the impact of coronavirus on you or your business, please contact our advisors.