On December 21st, Congress approved Coronavirus relief legislation to provide economic aid to American workers and small businesses. The President’s signature is still requested before becoming law. The “Small Business Title Section” of the legislation contains components that impact our golf course owners and operators.

Some of the key components of the legislation include:

• Second PPP loans for the "hardest-hit" small businesses.. Eligibility would be limited to small businesses with 300 or fewer employees that have sustained a 25 percent income loss in any quarter of 2020. Business income does not include PPP or other business loans.
• 501(c)(6) organizations eligible for PPP loans. 501(c)(6) organizations that are not lobbying organizations and have fewer than 150 employees would become eligible for PPP loans and Destination Marketing Organizations
• Expansion of forgivable expenses. Forgivable expenses expanded to include supplier costs and investments in facility modifications and personal protection equipment to operate safely.
• 100% deduction for business-related meals for 2021 and 2022
• Tax deduction for expenses paid for with proceeds of PPP loans. Business expenses paid for with proceeds of PPP loans become tax-deductible.
• Bill provides simplification of the loan forgiveness process. For borrowers of PPP loans of $150,000 or less. Borrowers who received less than $150,000 in PPP loans during the first round will now only have to submit a one-page application for forgiveness, but all of the same rules apply.  
• Repeals the PPP forgiveness. Repeals section 1110(e)(6) of the CARES Act, which requires PPP borrowers to deduct the amount of their EIDL advance from their PPP forgiveness amount.
• Extends the covered period for all first draw PPP loans through March 31, 2021.
• PPP borrowers can select the covered periods for as short as 8-weeks and as long as 24-weeks.
• Seasonal employers, the maximum amount of new PPP loans is based upon the average monthly payroll costs for 12 weeks selected by the borrower that begins February 15, 2019, or March 1, 2019, and ends June 30, 2019. Alternatively, the borrower may elect to use any consecutive 12-week (any 96 consecutive days) period beginning after February 14, 2020, and ending before January 1, 2021) multiplied by 2.5, but not exceeding $2 million. 
• Added additional expense elements to PPP loan program to include cloud-based business software and cost to modify your facility to meet health department requirements
• For loans of not more than $150,000, the entity may submit a certification attesting that the entity meets the revenue loss requirements before the entity submits their loan forgiveness application, and non-profit and veterans organizations may utilize gross receipts to calculate their revenue loss standard.
• ERTC will be available for the first two quarters of 2021 and will allow certain employers to take up to $7,000 per eligible employee retained during these two quarters. Employers who received a PPP loan may still qualify for ERTC on wages that are not paid for with forgiven PPP funds. 
• Additional funding would go to the SBA to increase its existing guarantees on SBA 7(a), 504, and microloans, as well as Economic Injury Disaster Loan, grant advances.
• Extends the SBA loan programs through September 2021

Other key components of the stimulus package include:

• Extends unemployment benefits up to 11 weeks, but reduces the weekly benefit to $300 beginning December 26, 2020.
• Individual stimulus direct payments of $600 per dependent of individuals with adjusted gross income up to $75,000, or $112,500 as head of household and $150,000 as a married couple filing jointly. The stimulus payment is reduced until they reach $99,000 ($188,000)

NGCOA will continue to monitor this legislation until signed into law.  Look for an upcoming Golf Business LIVE webinar to address the PPP program changes along with other key elements that impact our owners and operators. Email rmiles@ngcoa.org with your questions or comments.

Ronnie Miles is the Director of Advocacy for the NGCOA. He can be reached at rmiles@ngcoa.org.