---
title: What is Included in the Second Stimulus Package
description: The new stimulus package includes many benefits for individuals and small businesses, learn about its main aspects here
image: https://blog.gbsgroup.net/hubfs/Mascarilla-grupo-familia-impacto-economico-1080x675.webp
---

[** ](https://blog.gbsgroup.net/en/blog/what-is-included-in-the-second-stimulus-package#)

# What is Included in the Second Stimulus Package

por [Jose Diaz](https://blog.gbsgroup.net/en/blog/what-is-included-in-the-second-stimulus-package#) | February 16, 2021 | [Insights](https://blog.gbsgroup.net/en/blog/tag/insights)

![What is Included in the Second Stimulus Package](https://blog.gbsgroup.net/hubfs/Mascarilla-grupo-familia-impacto-economico-1080x675.webp)

On March 27, 2020, the [CARES Act](https://home.treasury.gov/policy-issues/cares) was enacted, an **economic stimulus package** for individuals and businesses to "mitigate" the damages cause**d by the recession triggered by the coronavirus pandemic**, and, on December 27, 2020,  the Federal Government signed an extension or “**second major package**”. Here are all the details.

> Sign up for our free webinar: [What you need to know about the stimulus package and PPP](https://blog.gbsgroup.net/?p=15284)

Two major  **lines of assistance** have been implemented under this** new $900 billion economic stimulus package**.

The first ones is **individual and household assistance**, through the **Economic** **Impact** **Payments **([EIP](https://www.consumerfinance.gov/about-us/blog/guia-estimulo-economico-por-covid-19/#cuando)) through the Internal Revenue Service (IRS) and enhanced unemployment benefits.

The second is **the Paycheck Protection Program **([PPP](https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program))**,** aimed at small businesses, which basically consists of loans that can be "condoned" (forgiven). These loans are supported by the Small Business Administration (SBA) and are managed by banks and savings and loan cooperatives in order to keep small businesses operational in the context of the health  [crisis.](https://blog.gbsgroup.net/?p=12602)

Let's look at the details of this extension or **second large economic** **stimulus package**, specifically: **Who will receive the checks? **Let’s clarify **that although these are popularly called** “**checks**”, many of these payments, and the first to be delivered, are processed as **direct** **deposits **to bank accounts reported to the IRS.

 

### **Economic Impact Payments Program (EIP)**

Under this program, individuals who are **up to date with their IRS obligations and have an** **annual** **income under $75,000** for the 2019 fiscal year received a check for $1,200 in April 2020, couples got $2,400 and an additional $500 for each child. 

It is expected that payments or **economic stimulus checks ****for** this **new extension will** be sent in the first week of 2021. This time, the deposits are US$ 600 per individual; $1,200 for couples and an additional $600 for each child, so an **eligible household** of 4 members (a couple and two children) will receive $2,400 for "**financial aid" **payment.

This time, an important change has been applied. Couples with "mixed immigration status", for example, a a spouse with** SSN** and another with **ITIN, **will be eligible; those members of the family group with **SSN** will be eligible and counted for assistance.

 

#### ***Who will receive EIP economic impact checks? ![](https://gbsgroup.net/wp-content/uploads/2021/01/image3-300x200.jpg)***

- Each qualifying adult and child will receive $600, and there is no limit on the number of qualifying household members.
- The maximum income threshold for receiving aid is $75,000 declared in the 2019 tax return for single individuals; $112,500 for those paying taxes as head of household and $150,000 for couples who submit joint tax returns.
- Above these thresholds, support will begin to decrease at a rate of $5 for every $100 declared beyond the above-mentioned values.
- A change was applied to families with mixed immigration status, for example, a spouse with** SSN **and another only  with** ITIN, **will be eligible; although only family members with SSN will receive US$ 600 each**.**
- The basis for qualification will be 2020 income, although deposits or checks will be calculated on the basis of what was declared in the 2019 financial year. Any credit in favor will be received on the next income tax return. 

 

### **Paycheck Protection Program (PPP)**

The second round of the [***Paycheck Protection Program***](https://blog.gbsgroup.net/?p=13026) brings significant benefits above the first round, especially a greater variety of eligible forgiveness expenses and the non-taxable nature of the funds awarded. 

The **SBA **has 10 days after the enactment of the extension of the economic **stimulus package,** to issue formal guidelines and regulations, but some guidelines have already been announced.

Of the $900 billion approved as an extension, some $284 billion will be earmarked for a second round of the** Paycheck Protection Program** **(PPP).**

Now, let's talk about some peculiarities.

#### ***Second round of the *Paycheck* Protection Program*:* Who qualifies?***

- Remember that any **small business** that meets the **SBA size guidelines** can request it**, **as well as single ownerships, self-employed individuals, and independent contractors
- Companies that have obtained a first **PPP loan** (under certain terms and conditions) and any business applying for a loan for the first time may apply. 
- A key premise **for opting for the second** **loan** is that candidate businesses will have to report gross income during the first, second, or third quarter of 2020 **at least 25%** **lower** than its gross income for the same quarter in 2019. 
- Applicants may also report the fourth quarter of 2020 if they apply for the** PPP** **loan** after January 1, 2021. 
- For companies [which NAICS code starts with 72](https://www.naics.com/six-digit-naics/?code=72)  (generally accommodation and food services) even more favorable conditions will apply.

**Don't miss our post**: [Five (5) recommendations to ensure the Paycheck Protection Program loan is forgiven](https://blog.gbsgroup.net/?p=12889).

 

#### ***Types of expenses covered***

For **PPP loans** in the second stimulus package, Congress expanded the types of expenditures for which funds can be used and which are subject to forgiveness.

Now in addition **to payroll, rental fees, mortgage interest, and utilities, **the  ***Paycheck Protection Program*** allows loan funds to be used to:

1. **Cover property **damage, vandalism and looting resulting from riots that occurred during 2020 and were not covered by insurance.
2. **Costs of** **suppliers** of goods essential for operations.   
3. **Expenses for worker protection **to comply with all safety guidelines ordered by *OSHA, *the *Department of Health *and the *CDC*. * * Especially personal protective equipment (PPE), physical barriers, space expansion, ventilation or filtration systems and step windows. 
4. **Costs that facilitate operations such** as: Software and cloud services, logistics in the delivery of products or services, processing, payment or tracking of payroll expenses; human resources and billing functions, supply tracking, inventory and records.

If the **PPP loan** is used to cover these expenses, it can be forgiven by up to 100%. This law also[ provides ](https://blog.gbsgroup.net/?p=12879)a simplified forgiveness application process if the loan did not go over $150,000.

#### ***Application amounts and tax treatment***

The **amount of the** **loan** to be received will be 2.5 times the average monthly payroll **costs **in 2019, up to a maximum of $2 million for those who have already been beneficiaries of a first loan. For first-time applicants, the maximum limit remains at $10 million.

Borrowers who have NAICS Code 72 (generally accommodation and food services) can use a 3.5 times factor of their average monthly payroll costs to calculate the maximum loan amount, subject to the above limits.

Another good news we mentioned earlier is that** PPP loans will not be included as taxable income.** Also, unlike the first round, **expenses** **paid**  with the proceeds of a **PPP** **loan** that are waived **will now be tax** **deductible, **leaving aside the previous guideline of the Treasury Department and the IRS.

 

### **What about unemployment benefits? ![](https://gbsgroup.net/wp-content/uploads/2021/01/image2-300x200.jpg)**

Under the **CARES Act** and its extension, [unemployment insurance benefit programs](https://www.dol.gov/coronavirus/unemployment-insurance) under state administration have been made more flexible.

Some flexibilities have been granted to support self-employed individuals and independent contractors, who under normal conditions would not be eligible.

Here are some basic premises to know about **unemployment insurance benefits **in the context of the **CARES Act, **the stimulus package and its extension:

- Extension of an additional 11 weeks for unemployment benefits, until **March 14, 2021.**
- $300 a week as a supplement to the **benefits granted by each state**.
- Self-employed individuals and independent contractors will continue to be eligible to opt for these benefits
- The benefit **is retroactive **until December 1, 2020.

### **In conclusion**

If your company was favored with a **PPP loan **and you are applying for debt forgiveness, or if you want to opt for a **PPP loan** under the second package, it is possible that doubts arise along the process, especially as a result of the treatment that banks can provide.

Proper specialist advice will always be within your reach and [**at GBS Group,** ](https://blog.gbsgroup.net/?page_id=6873) we have years of experience [in SBA-backed loans;](https://blog.gbsgroup.net/?page_id=12385) so, we are here to support you along the way.

We wish you success in your goals!

### Filters

- [Insights](https://blog.gbsgroup.net/en/blog/tag/insights)
- [Events](https://blog.gbsgroup.net/en/blog/tag/events)
- [Starting a business](https://blog.gbsgroup.net/en/blog/tag/starting-a-business)
- [News](https://blog.gbsgroup.net/en/blog/tag/news)
- [Webinars](https://blog.gbsgroup.net/en/blog/tag/webinars)

### Share

- [**](http://www.facebook.com/share.php?u=https://blog.gbsgroup.net/en/blog/what-is-included-in-the-second-stimulus-package)
- [**](https://twitter.com/intent/tweet?original_referer=https://blog.gbsgroup.net/en/blog/what-is-included-in-the-second-stimulus-package&url=https://blog.gbsgroup.net/en/blog/what-is-included-in-the-second-stimulus-package&source=tweetbutton&text=What+is+Included+in+the+Second+Stimulus+Package)
- [**](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.gbsgroup.net/en/blog/what-is-included-in-the-second-stimulus-package)
- [**](https://wa.me/?text=Esto%20te%20puede%20interesar:%20What+is+Included+in+the+Second+Stimulus+Package%20-%20https://blog.gbsgroup.net/en/blog/what-is-included-in-the-second-stimulus-package)

```json
{
  "@context" : "https://schema.org",
  "@type" : "BlogPosting",
  "author" : {
    "@type" : "Person",
    "name" : "Jose Diaz",
    "url" : "https://blog.gbsgroup.net/en/blog/author/jose-diaz"
  },
  "dateModified" : "2022-04-18T10:46:33.106Z",
  "datePublished" : "2021-02-16T11:46:00.000Z",
  "headline" : "What is Included in the Second Stimulus Package",
  "image" : [ "https://blog.gbsgroup.net/hubfs/Mascarilla-grupo-familia-impacto-economico-1080x675.webp" ],
  "mainEntityOfPage" : {
    "@id" : "https://blog.gbsgroup.net/en/blog/what-is-included-in-the-second-stimulus-package",
    "@type" : "WebPage"
  },
  "publisher" : {
    "@type" : "Organization",
    "logo" : {
      "@type" : "ImageObject",
      "url" : "https://blog.gbsgroup.net/hubfs/GBS%20Group%20Logo%20Horizontal%20copy.png"
    },
    "name" : "GBS Group, Inc."
  }
}
```