---
title: "COVID-19 Relief Bill: Here’s What It Means For Franchises"
url: https://burnaze.com/article/5a162639-7c8b-4c37-8f0f-f76bd2b9c8ae
source: "1851 Franchise"
original_url: https://1851franchise.com/covid-19-relief-bill-heres-what-it-means-for-franchises-2714569
category: "Franchise Industry"
industry: "Franchise Industry"
topics: ["Regulation & legal"]
published: 2020-12-21T20:15:42.000Z
modified: 2026-11-01T02:27:08.791Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/145d75bd32877d6efbd411141425db489869.jpg
---

# COVID-19 Relief Bill: Here’s What It Means For Franchises

**TL;DR:** The COVID-19 relief bill includes provisions for stimulus checks and other support for small and medium businesses, with $280 billion allocated for Paycheck Protection Program (PPP) loans. The bill has wide-ranging implications for Americans and businesses, including franchisees who can use PPP loans to pay employees and slash overhead.

*originally published in 1851 Franchise on 2020-12-21. [Read the original](https://1851franchise.com/covid-19-relief-bill-heres-what-it-means-for-franchises-2714569).*

## Key facts

- $900 billion COVID-19 relief bill
- $280 billion for PPP loans
- $15 billion for theaters and venues

## Story

Congress looks set to deliver a long-awaited $900 billion COVID-19 relief bill by the deadline at midnight on Monday. The bill has wide-ranging implications for Americans and businesses of all kinds, but some especially interesting clauses for the small and medium businesses that make up the franchising industry.

## Relief bill details

The bill, as agreed upon on Sunday night and facing votes in the House and Senate on Monday, includes provisions for another round of stimulus checks. The checks look set to include a maximum of $600 payments to each adult and each child. In April, the U.S. government issued stimulus checks for a maximum of $1,200 per adult and $500 per child. Like the last round of checks, these will start paying less than the maximum when a single taxpayer’s earnings reach $75,000, or when head-of-household income exceeds $112,500, or when income for married couples filing jointly passes $150,000.

Of $325 billion slated for small business relief, $280 billion will go to a second round of Paycheck Protection Program (PPP) loans. This original round of PPP was funded with $380 billion, which quickly ran out. Importantly, this bill would allow business owners to deduct expenses associated with the loans, overturning an earlier Treasury Department decision that set businesses up for an unwelcome hit come April 15.

Similarly, the U.S. will provide another $300 on top of existing unemployment uninsurance for the more than 10 million Americans still looking for work.

The legislation, as it stands, has earmarked money for certain industries.

## Industry allocations

The bill proposes $15 billion in grants for theaters and small performance venues, $15 billion for airlines to support payroll, $82 billion for schools and $10 billion for child care.

Notably, there is no special money set aside for the restaurant industry despite 110,000 restaurants closing since the start of the pandemic.

While Senate Majority Leader Mitch McConnell promised more help was on the way, this bill came after months of gridlock in Washington. It’s unclear when and what form additional aide for businesses could take as the new administration prepares to take over.

For now, the floodgates look set to open again on PPP funding. Franchisees should demand franchisors take swift action to secure PPP loans, which can help franchisees pay employees and slash overhead. The portion of PPP loans used to pay employees can be completely forgiven.

Stimulus checks may briefly increase the spending power of American consumers. Americans on unemployment will have more to spend, but after nine months of catastrophic job losses and economic turmoil, it’s unclear how much of that income consumers will see as “disposable.”

## Entities

- 1851 Franchise (publication)
- Franchise Industry (sector)
- franchise industry (topic)
- Congress (regulator)
- covid-19 relief (topic)
- ppp loans (topic)
- U.S. government (regulator)
- Treasury Department (regulator)
- stimulus checks (topic)
- small business relief (topic)

---
Originally reported by 1851 Franchise (https://1851franchise.com/covid-19-relief-bill-heres-what-it-means-for-franchises-2714569). Summarized by Burnaze (https://burnaze.com/article/5a162639-7c8b-4c37-8f0f-f76bd2b9c8ae).