Legislative Update

Coronavirus Relief Bill Signed

After a tense standoff, President Trump relented and signed the $2.4 trillion package containing government funding and $900 billion in coronavirus relief. President Trump issued a statement with his signature highlighting provisions he opposes that are in the bill and expressed his desire for Congress to consider a package of rescissions. By signing the 5,593-page behemoth, the president averted a shutdown of the federal government and extended various programs to support the economy and provide unemployment benefits to out of work Americans.

What's In the Bill For Clubs?

The package includes a few provisions that will be of benefit to the club community. The primary relief is an extension and enhancement of the employee retention tax credit (ERTC). The program was expanded to include businesses with fewer than 500 employees—the previous program was capped at fewer than 100. The credit was increased to 70% on up to $10,000 of wages per employee per quarter. This equates to up to $14,000 per employee in 2021.

The business meal deduction was also increased to 100% for the next two years. For those clubs that were eligible for the Paycheck Protection Program (PPP), the program was extended and changes were made to the forgiveness terms of the loan. It also allows those businesses receiving a loan in 2020, to take a second draw from the program in 2021. Unfortunately, the PPP is still not available for 501(c)(7) entities.

The appropriations portion of the package contained provisions authorizing the Department of Homeland Security (DHS), in consultation with the Department of Labor (DOL) to increase the H-2B cap for fiscal year 2021 by up to approximately 69,000 visas if it determines that the needs of the seasonal businesses cannot be met with U.S. workers. It also provides for a maximum season of 10 months as opposed to the current 9-month season in DOL regulations.