6 Ways the New Stimulus Bill May Help Small Business Owners

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.

Here’s How Small Business Owners Can Get More Help

1. More small businesses are now eligible for PPP loans.

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:

• The organization does not receive more than 15% of receipts from lobbying activities;
• The lobbying activities do not comprise more than 15% of activities;
• The cost of lobbying activities of the organization did not exceed $1 million during the most recent tax year that ended prior to Feb. 15, 2020; and
• The organization employs not more than 300 employees.

Larger not-for-profits with these distinctions may also be eligible for PPP funding:

• Larger 501(c)(3) organizations and veterans organizations that employ not more than 500 employees per physical location.
• Larger 501(c)(6) organizations, domestic marketing organizations, and additional covered not-for-profit entities that employ not more than 300 employees per physical location.

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.

2. Checks will be sent to qualifying individuals.

Depending on your income, you may be eligible for a stimulus check up to $1,400. Here's the breakdown of who qualifies:

• Individuals making $75,000 or less
• Heads of household making $112,500 or less
• Married couples making $150,000 combined or less

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.

3. An extension will be granted for Economic Disaster Loans (EIDL).

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.

4. More aid will be made available for hospitality businesses.

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:

• Payroll costs
• Principal and interest payments on a mortgage, not including any prepayments on principal
• Rent payments, not including prepayments
• Utilities
• Operational expenses
• And more

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.

5. Shuttered venue operators may qualify for grants.

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.

6. Communities will begin a "community navigator" pilot program.

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.

We're Not Out of the Woods Yet

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.