Government measures in key jurisdictions 5th edition - Flipbook - Page 162
United States ofAmerica
Contributor: Nixon Peabody
Loans and
financial
support
Has the
government put
in place any new
bank funding
schemes?
Employment
What financial
support is
the government
providing to
businesses
and to individuals
on employment
162
David Kaufman | dkaufman@nixonpeabody.com | +1 415 244 2224
David Brown | drbrown@nixonpeabody.com | +1 312 977 4426
•
The U.S. federal government has embarked on several initiatives to support
businesses. At the end of December 2020, the Congress enacted another large relief
program. The Consolidated Appropriations Act, 2021, provided approximately $900
billion in coronavirus (Covid-19) relief, including some $300 billion in additional
Paycheck Protection Program (PPP) funding.
•
In this new round of we saw an expansion of permissible expenses for new and existing
borrowers AND new categories of borrowers to permit some previously ineligible
entities to seek PPP funding. At the same time, however, the legislation narrows
eligibility for a few categories of borrowers. In addition to narrowing the size of (now no
more than 300 employees) of eligible companies and adding a revenue loss
requirement, the new program also makes ineligible publicly traded companies,
companies organized in or with significant operations in China or Hong Kong, and
companies with board members who are residents of China. For more details, please
refer to our client alert here.
•
The new legislation also made changes to the Employee Retention Credit (ERC), which
was introduced in March 2020 in a prior stimulus package. The ERC uses the tax code
to provide economic benefits to struggling businesses. For more details, please refer
to our client alert here.
•
Perhaps few industries have been as negatively affected by the ongoing pandemic as
the performing/visual arts sector. As part of above mentioned recently passed relief
program, the U.S. government is providing $15 billion in support to entities that qualify
as a “live venue operator or promoter, theatrical producer, or live performing arts
organization operator[;] a relevant museum operator[;] a motion picture theatre
operator[;] or a talent representative.” For more details, please refer to our client alert
here.
•
The 2021 The Consolidated Appropriations Act provided for extended unemployment
coverage and a supplemental benefit of $300 per week. The payment is available to
recipients of state unemployment benefits through March 14, 2021. However, the
Biden Administration is looking to extend the program until August and increase the
additional weekly payments to $400.
•
Also on the employment front, in the U.S. employers can require employees to receive
the Covid-19 vaccine; however, there are still some liability risks. Employers can also
put in programs to incentivize vaccination by employees; but, thereto, restrictions
exist.
•
For more details, please refer to our recent webinar.
Government measures in key jurisdictions
