COVID-19 News Round-up for September 11

Budget, Policy & Stimulus News
Republican Stimulus Proposal Includes 2^nd PPP, New Protections
Small businesses could see a second round of Paycheck Protection Program loans and legal liability protections from COVID-19-related claims under a new, scaled-down stimulus proposal introduced by Senate Republicans. The new bill would create a second round of PPP loans for small businesses of 300 employees or less that have seen at least a 35% drop in revenue in one quarter in 2020 over the same quarter in 2019, according to a summary of the bill circulated by Republicans. (Source: Phoenix Business Journal)
Economic News
Biden Proposal Would Cut 1031s
Democratic presidential candidate Joe Biden recently announced a $775B plan to boost Child and Elderly care. The decade-long plan will be paid for by reducing or eliminating 1031 tax breaks for real estate investors who make more than $400K a year. The new policy will put more emphasis on Cost Segregation Studies to reduce tax liability in the context of none or reduced 1031’s. If Biden is elected and this policy is put in place, Scott Roelofs, CEO and owner of RCG Valuation, said it’s likely investors will hold onto their property for a longer period of time, which could make it more challenging if they’re flipping any of those properties, which could result in lower profits, paying the ordinary income tax and their income tax rate could also go up. (Source: AZ Big Media)
Phoenix Mayor: City Doing Well
The Phoenix-area continues to see substantial economic and construction growth despite the COVID-19 pandemic. Phoenix Mayor Kate Gallego told KTAR News 92.3 FM out of the top 10 construction markets, Phoenix is the only market where construction expenditures increased during the pandemic. (Source: KTAR)
Resources
Phoenix Offers $5K Resiliency Grants
The City of Phoenix is offering grants of up to $5,000 to local microbusinesses, solo practitioners, and entrepreneurs experiencing economic distress and sudden loss of revenue due to the COVID-19 pandemic. Resiliency grants are intended to help both for-profit and non-profit small businesses keep employees on payroll and meet other necessary operating costs. Preference will be given in order of application. (Source: City of Phoenix)
Phoenix Has $10K Small Business Relief Grants
The City of Phoenix, in coordination with the Phoenix IDA, is offering grants up to $10K to local small businesses, startup companies, and nonprofits experiencing economic distress and sudden loss of revenue due to the COVID-19 pandemic. Relief grants are intended to help small businesses, startup companies, and nonprofits keep employees on payroll and meet other necessary operating costs. To apply, businesses must be located in economically distressed areas of Phoenix. (Source: City of Phoenix)