How Does the American Rescue Plan Help My Small Business?
On March 11, 2021, President Biden signed the American Rescue Plan into law, which includes direct relief payments to millions of Americans, as well as the expansion of small business programs and grants. Read on to learn how the American Rescue Plan can help your small business.
What are the Small Business Relief Details of the American Rescue Plan?
The American Rescue Plan expanded existing emergency business funding, and added several new grant programs to help some of the hardest hit communities and industries:1
- An additional $7.25 billion in funding for the Paycheck Protection Program. However, the March 31, 2021 loan program deadline has not changed. Additional legislation is required to postpone the current PPP loan deadline, though a bipartisan bill to extend the deadline was recently introduced.
- Updates to the Shuttered Venue Operators Grant (SVOG) program, including opening cross-eligibility for qualifying businesses with PPP loans and the grant program. While PPP applications are currently open, the SBA is expected to open SVOG applications in early April 2021 with $15 billion designated for the program.
- $15 billion in additional funding for the Targeted Economic Injury Disaster Loan Advance (EIDL) program, including $5 billion in supplemental advance payments for businesses that were hardest hit. The SBA will reach out to qualified applicants for this program.
- $28.6 billion grant fund targeting qualified hard-hit establishments, titled the Restaurant Revitalization Fund. Grants are available up to $5 million for restaurants and $10 million for restaurant groups. The SBA and/or SBA-approved lenders are not currently accepting applications for this program, but will release details when they become available.
- $100 million in funding to develop a Community Navigator resource program, which aims to help guide and support entrepreneurs from diverse backgrounds.
How Do I Apply for Financial Relief From the American Rescue Plan?
Some of the financial relief programs in the American Rescue Plan are available now, including additional funding through the Paycheck Protection Plan (through March 31, 2021). Qualified small businesses can also apply for an Economic Injury Disaster Loan. PPP and EIDL loans are available from SBA-approved lenders across the country. Additional details regarding American Rescue Plan small business relief programs will be released as more information becomes available.
Can Small Business Owners Qualify for the Stimulus Payment?
The American Rescue Plan includes direct payments of $1,400 to qualifying U.S. citizens or permanent residents, including small business owners, so long as they have a work-eligible Social Security number, are not dependents of another taxpayer and have an adjusted gross income (AGI) – based on the most recent tax return – up to the following:
- $75,000 if filing as an individual, single tax filer or married person filing separately
- $112,500 if filing as head of household
- $150,000 for married couples filing a joint tax return or qualifying widow/widower
American Rescue Plan stimulus payments are reduced for individuals earning an adjusted gross income over the above income thresholds, but less than the income limits listed below. Additionally, taxpayers who earn more than the following adjusted gross income limits are not eligible for direct payment under the American Rescue Plan Act:
- $80,000 if filing as an individual, single tax filer or married person filing separately
- $120,000 for head of household
- $160,000 for married couples filing a joint tax return or qualifying widow/widower
AGI is based on the most recent personal tax return. Stimulus payments are sent automatically to qualified recipients. Read this guide for help with your stimulus payment.
1U.S. Small Business Administration. (2021). American Rescue Plan Act Elevates Small Business Support in Response to COVID-19 Pandemic.