Saturday morning, the U.S. House of Representatives passed the American Rescue Plan Act of 2021, a $1.9 trillion COVID-19 relief package that includes, along with stimulus payments and unemployment, tens of billions in aid for small businesses and not-for-profits. Now it goes to the Senate. Let’s see what this could mean for small businesses if it passes:
- PPP funding: The bill appropriates $7.25 billion in additional funding but does not extend the PPP’s current application period, which is scheduled to close March 31.The plan does qualify more not-for-profits eligible for the PPP and expands PPP eligibility to internet-only news and periodical publishers that meet certain conditions.
- Restaurant Revitalization Fund (RRF): $25 billion has been allocated to the RRF to help businesses in food sector, including but not limited to restaurants, bars, food trucks, food carts, caterers, inns, lounges, and more. Grant funds may be used to pay for payroll costs, mortgage interest, rent payments, utilities, maintenance, supplies, paid sick leave and more.
- Targeted EIDL Advance grants: This grant provides funds to small businesses located in low-income communities that have no more than 300 employees and that have an economic loss of more than 30%. There are specific timelines set out for the SBA to accept and review applications. Keep an eye out on this grant if your business falls into this category. You don’t want to miss out.
- Increased Minimum Wage: The increase of minimum wage will likely not be included in the bill the Senate passes, which means the amended bill will have to go back to the House to approve.
If the bill passes with no changes related to small business, funds received from Targeted EIDL Advances and RRF grants will not be taxed and will not affect your business deductions. If the bill passes and you fall into either of these categories, you should absolutely take advantage of these grants. If you have been considering the PPP Loan but have not made up your mind, time may be running out if no other extensions are made. At IOOGO, we love helping small businesses take advantage of all resources available. Contact us today!