How the American Rescue Plan Can Benefit Your Small Business

On March 11, 2021, the American Rescue Plan Act advanced emergency COVID-19 relief programs and assistance for individuals and small businesses across the country. These benefits include another round of direct payments for millions of Americans and their families, as well as expanded small business aid and grants. Learn how the American Rescue Plan Act can help your small business through the pandemic.

What Programs in the American Rescue Plan Benefit My Small Business?

The American Rescue Plan Act expanded several existing programs and introduced other small business grants to help struggling companies across the country, including:

• An additional $7.25 billion for the Paycheck Protection Program (PPP), though the Act did not change the current loan deadline of March 31, 2021. A bipartisan bill was recently introduced to postpone the application and processing date.
• Updates to the Shuttered Venue Operators Grant (SVOG) program, which include eligibility for borrowers with PPP loans and the SVOG.
• $15 billion in additional funding for Targeted Economic Injury Disaster Loan Advance (EIDL) payments, which includes $5 billion in payments for the hardest-hit businesses
• $28.6 billion to establish the Restaurant Revitalization Fund, which aims to help qualified establishments that have been affected by the pandemic. This includes grants of up to $5 million for restaurants and $10 million for restaurant groups.
• $100 million to develop a Community Navigator program, which is meant to support underserved business communities and improve access to COVID-19 relief programs.¹

How Do I Apply for American Rescue Plan Small Business Relief?

While some of the relief programs and grants have not yet opened, eligible small businesses can pursue the PPP and/or EIDL programs through SBA-approved lenders across the country. The current deadline for PPP loans is March 31, 2021, while EIDL applications close on December 31, 2021.

Some of the programs introduced in the American Rescue Plan Act have not yet opened, such as the Shuttered Venue Operators Grant and the Restaurant Revitalization Fund. The SBA will announce more details for both relief programs as they become available, though exact dates and application requirements are not currently available.

Do Small Business Owners Qualify for the Economic Stimulus Payment?

The American Rescue Plan also includes direct stimulus payments of up to $1,400 to millions of Americans. Small business owners can qualify for the payment, so long as they are U.S. citizens or residents and were not claimed as a dependent of another taxpayer. They must also have a valid Social Security number and an adjusted gross income (AGI) of no more than the following:

• $150,000 if married and filing a joint tax return, or a qualifying widow/widower
• $112,500 if filing as head of household
• $75,000 if filing as an individual, a married person filing separately or a single tax filer

Payments are reduced for individuals with AGIs exceeding the above income thresholds but less than the income limits listed below:

• $160,000 if married and filing a joint tax return, or a qualifying widow/widower
• $120,000 if filing as head of household
• $80,000 if filing as an individual, a married person filing separately or a single tax filer

Stimulus payments are not available for taxpayers with AGIs exceeding the above income limits.

Note: AGI is based on your most recent personal tax return. Payments are sent automatically to eligible individuals. For help with your payment, read this IRS resource guide.

References

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