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

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.

 

References

1U.S. Small Business Administration. (2021). American Rescue Plan Act Elevates Small Business Support in Response to COVID-19 Pandemic.

Bonnie P

Bonnie is a Chicago transplant who's committed to seeing the world on a dime. As an avid news junkie with a fascination with finance, she loves to help others do more with less.

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