What is in the American Rescue Plan Act for Small Businesses

Lindsey KingMarch 17, 2021Uncategorized

March 17, 2021

If you have been waiting for the scoop on the American Rescue Plan Act, the wait is over! And if you’ve been waiting for a scoop of mint chip at your local custard place, today is also your day. Now I’m hungry, and slightly distracted. But I will focus because you need to know what ARPA contains for small business owners more than I need to know how far I would have to run to work off that scoop.

ARPA includes an additional $7.25 billion in funding for the Paycheck Protection Program. Unfortunately it failed to extend the application deadline past March 31, so if you want to apply for a first or second draw, now is the time. Many large banks have already stopped accepting applications as it takes several days for the SBA to approve applications.

If you didn’t get a chance to apply, there might be other avenues of funding available to you that don’t have looming deadlines. The law also includes $10 billion in funding for the State Small Business Credit Initiative. I will be watching to see if Wisconsin receives any of this and what they do with the funds.

You might also still be able to receive an Economic Injury Disaster Loan, and ARPA is making EIDL grants available to eligible small businesses in low income communities. If you need a refresher on EIDL, click here.

ARPA also extended the Employee Retention Tax credit for eligible employers who continue to pay wages during COVID related closures or who experience reduced revenue through December 31, 2021. I suggest you talk to your tax professional about this one.

Finally, ARPA also extended many of the FFCRA provisions, and I am going to dig deeper into that later. And now I might need to go dig into a banana split, because I am still thinking about ice cream. If you have any questions about how any of this relates to your business, feel free to send me a message. If you want to discuss your favorite ice cream toppings, let’s do that on Facebook or Instagram! Make sure you follow me for all of these delicious discussions as well as the latest small business news.

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