Conclusion: Small Business Priorities Related to Paycheck Protection Program Loans and Child Care Moving Forward – Lane Report
By Jaqueline Pitts
On Friday, two bills important to the survival of Kentucky small businesses went through committees, sending them to their final legislative stages.
Senate Bill 148, sponsored by Senator Danny Carroll, limits the regulations that can be imposed on certified family child care centers in an attempt to encourage more home care, which could expand access to child care. children for the working families of Kentucky.
The legislation, supported by the Kentucky House, would reduce the number of children in a classroom to pre-pandemic levels and allow for a combination of morning and afternoon classes to help with staffing. The bill also prescribes regulations that the Cabinet for Health and Family Services may make regarding child care during a state of emergency.
Carroll told the committee that many struggled during the COVID-19 pandemic and that due to the restrictions, the state has lost many child care centers and many more are now struggling to survive. He said the legislation will help with some child care deserts across the state by opening the door for others providing these much needed services.
The owner of a day care center in western Kentucky testified that his business had lost over $ 150,000 in the past year and stressed the importance of the combination of classes and other regulatory changes.
Senate Bill 148 was passed unanimously in committee and is now proceeding to the House.
As many Kentucky businesses have received loans to help them pay their employees amid the COVID-19 pandemic, this income for a Paycheck Protection Program (P3) forgivable loan has been deemed tax-free at the level federal.
House Bill 278, sponsored by Representative Patrick Flannery, would allow small businesses and self-employed people in Kentucky who received a forgivable PPP loan to deduct expenses paid with the loan.
Flannery said the legislation would not be a boon to big business, but rather protect small Kentucky businesses from a heavy tax burden.
House Bill 278 was passed by the Senate Appropriations and Revenue Committee with little discussion and is now moving to the Senate for a vote.
The bottom line is the official information site of the Kentucky Chamber of Commerce