On March 12th, the third stimulus bill called the American Rescue Plan passed into law. The bill consists of $1.9 trillion to help people and businesses struggling with the pandemic. Here’s what you can expect from the bill for your small business.
Please note: Updates to these programs are likely as details are finalized. As always, Maine SBDC will keep you posted as details unfold. Sign up for our newsletter or follow us on Facebook to get the latest updates.
Paycheck Protection Program Update
An additional $7.25 billion was added to the Paycheck Protection Program (PPP). Remember, if you are a sole proprietor, single-member LLC, or qualified joint venture and you file a Schedule C (and whether or not you have employees), you may now opt to use your Gross Income (Line 7 on your Schedule C) instead of your Net Income to calculate your maximum PPP loan amount.
Deadline for this program is currently March 31, 2021. Congress is considering a deadline extension, and we’ll update as that information becomes official. More details on PPP here.
Shuttered Venue Operators Grant Update
You may now receive both the Shuttered Venue Operators Grant (SVOG) and the PPP loan. The SVOG program also received additional funds with this new stimulus bill. If you intend to apply for SVOG when it is ready in early April, we highly suggest you begin gathering your materials now. More details on SVOG can be found here.
Targeted Economic Injury Disaster Loan Update
The Targeted Economic Injury Disaster Loan (EIDL) Advance received an additional $15 billion in funding as part of the bill, including $5 billion to be allocated for the businesses that have been the hardest hit which includes those with a 50% decrease in revenue and those located in low-income communities. No action is required – SBA will reach out to those that qualify.
NEW! Restaurant Revitalization Fund
This new stimulus allocated $28.6 billion in grants specifically for restaurants and bars. This program will be available through the U.S. Small Business Administration. Official details have not been announced. Like with all federal grants, you should start preparing now by registering for a DUNS number and in the SAM registration system. You must have a DUNS number in order to register in the SAM system. You can also start gathering documentation to help demonstrate your losses.
Unemployed workers will continue receiving an additional $300 in weekly federal Pandemic Unemployment Assistance (PUA) through September 2021. This extension continues to provide benefits to the self-employed.
In addition, the first $10,200 of unemployment benefits will be tax-free.
Direct payments will be made for up to $1,400 per person including dependents based on adjusted gross income (AGI). While this benefit is not tied directly to businesses, it’s an important element to help small businesses and their families.