The American Rescue Plan Act - a $1.9 trillion package designed to kickstart the economy and provide relief to those in financial duress as a result of the COVID-19 pandemic - has passed.
The stimulus bill - signed by President Biden on Thursday evening - puts aside an additional $7.25 billion in funding for the Paycheck Protection Program (PPP). Small businesses can learn how to apply for those loans here.
But that's just a small part of what’s in the stimulus bill. Here's how else it could help small business owners.
While the PPP loan deadline is still March 31st, 2021, more businesses will be eligible to apply for funding (lawmakers are currently trying to push for a two-month PPP deadline extension).
Certain non-profit organizations may now be eligible for an initial PPP loan if:
Larger not-for-profits with these distinctions may also be eligible for PPP funding:
Beyond non-profit organizations, online news and periodical publishers with more than one location and fewer than 500 employees may also be eligible for PPP funding.
Depending on your income, you may be eligible for a stimulus check up to $1,400. Here's the breakdown of who qualifies:
Dependents of taxpayers, including college students, elderly family members, and disabled people, will now also be eligible for a stimulus check, unlike the previous stimulus payments. Similarly, if you owe child support, your stimulus check will not be withheld.
The stimulus bill will open up additional eligibility for Economic Injury & Disaster Loan (EIDL) grants. If you applied for a targeted EIDL advance and hadn't previously received any assistance, you may be eligible to apply again.
The Restaurant Revitalization Fund (RRF) is allocating $25 billion dollars to help companies in the food services industry.
If you're a small business where patrons gather primarily for food or drink, you'll eligible for a grant that helps cover things like:
Grants are calculated by subtracting your business's 2020 revenue from its 2019 revenue.
During the first 21 days of the grants, the SBA will prioritize applications from restaurants owned and operated or controlled by women, veterans, or socially and economically disadvantaged individuals.
Applicants may qualify for up to 45% of their gross earned revenue. $1.25 billion dollars will be available for allocation under the new stimulus. For more information about this program, click here.
Note: If you apply for a PPP loan, you cannot apply for this grant. Learn more at the U.S. Chamber of Commerce website.
Navigating the pandemic hasn't been easy for small businesses. The stimulus is putting $175 billion towards community navigator programs that can help small businesses with COVID-19 awareness and relief programs.
Business owners who lack access will be prioritized, including but not limited to: businesses owned by socially and economically disadvantaged individuals, women, and veterans.
If you're eligible for any of the benefits attached to the newest stimulus package, we encourage you to apply. While the pandemic’s end is in sight, the road ahead is still long for many business owners impacted by COVID-19.
For more advice on getting your business back on track throughout the pandemic, visit our Back on Track Hub here.
I’ve told stories since I learned to talk and written since I could hold a pen. As a small business owner myself - I'm a freelance writer and yoga teacher - I love contributing to the entrepreneurship community in different ways (including writing for Simply Business!). When I’m not drafting articles for SB, I can be found on my yoga mat, perusing an indie bookstore, and writing (with my cat nearby of course).
This content is for general, informational purposes only and is not intended to provide legal, tax, accounting, or financial advice. Please obtain expert advice from industry specific professionals who may better understand your business’s needs. Read our full disclaimer
*Harborway Insurance policies are underwritten by Spinnaker Insurance Company and reinsured by Munich Re, an A+ (Superior) rated insurance carrier by AM Best. Harborway Insurance is a brand name of Harborway Insurance Agency, LLC, a licensed insurance producer in all 50 states and the District of Columbia. California license #6004217.