June 8, 2020
Happy Monday, Tourism Friends!
We want to quickly bring to your attention that President Trump signed a bill this past Friday (June 5) improving the Paycheck Protection Program (PPP). In a nutshell, the bill makes the PPP much friendlier for small businesses. Here are some quick highlights of the improvements to the program (special thanks to Senator John Thune’s office for the details):
- It extends the Paycheck Protection Program from June 30, 2020, to December 31, 2020. However, no new loans can be originated after June 30, 2020.
- It extends the amount of time that businesses must spend their Paycheck Protection Program loan from eight weeks to 24 weeks after the date of loan origination.
- It ensures that the amount of loan forgiveness that businesses receive is not reduced because an employee refuses to return to work, so long as businesses attempt to rehire employees in good faith.
- It requires that only 60 percent of the Paycheck Protection Program loan must be spent on payroll expenses. The remaining 40 percent can go toward other qualifying business expenses like mortgage interest, rent and utilities.
- It allows businesses that receive a Paycheck Protection Program loan to also be eligible to defer payment of their payroll taxes. These deferred payroll taxes can be paid over the next two years – half by December 31, 2021, and the other half by December 31, 2022.
If you have any questions about the PPP, be sure and reach out to the South Dakota District Office of the Small Business Administration or your lender.
Also, a heads up that the U.S. Travel Association is working on legislation to:
- Include domestic marketing organizations (DMOs) that are 501(c)(4)s and 501(c)(6)s for the PPP
- Create a temporary travel tax credit
- Allow full deductibility of food and entertainment business expenses
- Provide $10 billion for domestic travel promotion to state tourism offices and local destination marketing organizations
- Create a meetings and events tax credit
You can read more details about these provisions in this document.
Please let us know if you have any questions. Have a great week and stay well!
All our best,
Jim & Team
Secretary of Tourism