UPDATE: President Trump signed the COVID relief and government spending legislation, which includes PPP funding and $600 stimulus checks. Additionally, the US House and Senate will be voting on the additional stimulus check request from the President today. If passed, additional funding will be distributed.
WHAT THE COVID RELIEF BILL MEANS FOR SOUTH CAROLINA'S HOSPITALITY INDUSTRY
Congress passed a $900 billion relief bill to provide short-term economic relief to the country in the face of the coronavirus pandemic. The bill includes several items that will benefit restaurants and hotels with unique provisions aimed to assist South Carolina’s hospitality industry, which continues to endure catastrophic job and revenue losses.
The funding relief include a second round of PPP with a forgivable loan based on 3.5 times average monthly payroll costs, enhanced access to PPP, and a one-year extension for Troubled Debt Restructuring (TDR) relief (Section 4013 of the CARES Act).
Other provisions in the bill that will benefit restaurants and hotels include the deductibility of business expenses paid with PPP loans, enhancement of the Employee Retention Tax Credit (ERTC), extension of the augmented Work Opportunity Tax Credit (WOTC), and increased tax deduction for business meals.
The Association in partnership with the National Restaurant Association and the American Hotel and Lodging Association sought other provisions that were included in the bill which will benefit hotels and restaurants, including the deductibility of business expenses paid with PPP loans, enhancement of the Employee Retention Tax Credit (ERTC), extension of the augmented Work Opportunity Tax Credit (WOTC), and increased tax deduction for business meals.
There is much more to be accomplished, and we will continue to press in 2021 at the federal, state, and local level on behalf of the industry, the more than 200,000 hospitality employees, and our guests and customers.
We will continue to monitor the progress and let you know as soon as we have more information regarding the application process.
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