What We Know About the New Stimulus Deal So Far

On Sunday, December 20, Majority Leader Mitch McConnell and Minority Leader Chuck Schumer signaled that Congress had reached deal on a $900 billion COVID relief package. Details are still emerging, but here’s what we currently know on some high-priority topics for the JBF community. Note: this is not a comprehensive list of the assistance provided by the bill.

• Direct Economic Relief for Workers and Families: the enhanced federal unemployment insurance bump, which expired in July, will be re-instated at $300 per week for all workers receiving unemployment benefits through March 14, 2021. It also extends the Pandemic Unemployment Assistance program for self-employment, gig work, and other non-traditional employment. The bill also secures another round of Economic Impact payments of $600 for individuals making up to $75,000 per year, and $1,200 for couples making up to $150,000 per year, as well as $600 for each dependent under 18 years old.
• SNAP Increase and Funds for Agriculture: $13 billion will be allocated to increase SNAP benefits by 15%, and to provide additional funding for food banks and senior nutrition programs. In addition, the bill allocates another $13 billion for direct payments, purchases, and loans to farmers and ranchers who have suffered losses due to the pandemic.
• More PPP: $284 billion is allocated for first and second forgivable PPP loans, with dedicated funds set asides for very small businesses and lending through community-based lenders like Community Development Financial Institutions and Minority Depository Institutions. The deal also includes additional funds for SBA lending and debt relief. 

While this deal does not include direct relief for restaurants, it is our understanding that it will include changes to the PPP including:

• Restaurant and hospitality industry will be able to receive a special award amount that is 3.5X average monthly payroll (other industries are 2.5X)
• Expansion of eligible expenses such as PPE and outdoor dining modifications

For a division-by-division summary of the COVID-19 relief provisions, click here.

We will be updating this post as we learn more. You can read more about what the new package means for the food industry here.

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