On March 11, 2021, President Biden signed the American Rescue Plan Act of 2021 into law. The Act offers $1.9 trillion dollars in a relief package designed to help Americans recover from the pandemic. The following funds are allotted to small business recovery, targeting the most hard-hit industries as designated by NAICS codes through ongoing and new aid programs:
- An additional $7.25 billion is being allotted for the Paycheck Protection Program, including expanded eligibility to more nonprofits—those employing 500 or fewer per physical location— and digital news services; The Program will also offer less stringent access standards for not only nonprofit entities and digital media companies, but sole proprietors, independent contractors, and self-employed individuals.
- Additional funds allocated for the Shuttered Venue Operators Grant program.
- Additional $15 billion for Targeted Economic Injury Disaster Loan Advance (EIDL); payments, including $5 billion for Supplemental Targeted EIDL Advance payments for those industries that have been hardest hit;
- The Targeted EIDL Advance will be prioritized for businesses that suffered a revenue loss of greater than 50 percent, operate in low-income census tract areas, and employ 10 or fewer people.
- $28.6 billion for the Restaurant Revitalization Fund for industry-focused grants;
- $5 billion of the RRF will be allocated to restaurants whose gross receipts in 2019 were less than $500,000. The first 21 days of the program are aimed to prioritize small businesses owned by women, veterans, or socially and economically disadvantaged individuals.
- Public companies, government-managed businesses, entities, and affiliates that have more than 20 locations, AND entities that have applied for a Shuttered Venue Operator Grant do not qualify for the Restaurant Revitalization Fund.
- Grant amounts will not exceed a restaurant’s pandemic-related revenue loss (as measured by the difference between 2020 and 2019 gross receipts) of up to $10 million with a limit of $5 million per physical location.
- Grant amounts may be used to cover payroll costs, mortgage payments, rent, utilities, maintenance expenses, operational expenses, paid sick leave, and supplies. Grant amounts received from the Restaurant Revitalization Fund won’t be treated as taxable income, and expenditures paid with such grant amounts will still be deductible.
- $100 million to establish a Community Navigator pilot program; grants for eligible organizations supporting efforts to improve access to COVID–19 pandemic assistance programs and resources.
Senior Advisor of the U.S. Small Business Administration (SBA), Michael Roth, hailed the Act as funding that will “enable the SBA to continue to lift up the cornerstones of our communities; the mom-and-pop businesses and nonprofits that provide essential services for our everyday lives, hire from within neighborhoods, and more. Our nation’s more than 30 million small businesses are the economic engine of this country and...the SBA will work tirelessly to ensure eligible borrowers will get access to this critical economic relief.”
Are you interested in knowing more about the grants and aid available to you and whether your business is eligible for additional funding? Loan Mantra wants to keep you in the know even though we are not participating in all of these programs. Stay tuned as we continue to keep you updated and remember to update your Loan Mantra portal so you’re ready for the next steps to grow your business!