Congress — the House and Senate — passed the latest COVID relief bill. The package has assistance specifically for small businesses, with restaurants getting much-needed help. There is direct help to small businesses through additional funding for programs like the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loans. Indirect relief through stimulus checks and unemployment checks as well as vaccine production and distribution will also help small businesses by boosting the buying power of consumers and keeping them healthy while preparing the economy to open back up. And there’s more. Let’s take a look.
What’s In The Bill For Small Business
With President Biden’s signature, the latest coronavirus relief bill includes the following provision which should help small businesses:
- Help for Restaurants: Restaurants can get grants — not loans — to cover losses suffered during the pandemic crisis. The amounts are up to $10 million per business and up to $5 million per location. The bill allocates nearly $30 billion for this help, $5 billion of which is earmarked for the smallest restaurants, grossing less than $500,000 per year.
- Paycheck Protection Program: The program which helps businesses cover payroll and other basic costs now has an additional $7.25 billion to offer in the form of forgivable loans. The one caution you need to know that, as of now, the program is still set to expire on March 31st. Any loan not approved by the 31st will not get funding. That’s a problem, given the log-jam of applications already at the SBA.
- Stimulus and Unemployment Payments: Small businesses benefit indirectly from additional money in the pockets of their customers. The stimulus bill has another round of checks coming for most Americans — up to $1400 for each person making less than $75,000 (individual)/$150,000 (household). The IRS will use your 2020 tax return to determine eligibility. If you haven’t filed for 2020, they will look at your 2019 return. Additionally, $300 per week in federal assistance for the unemployed should help boost some of that spending power as well.
- State Small Business Lending: There is $10 billion for the State Small Business Credit Initiative, a program that helps states lend money to the smallest businesses.
- Economic Injury Disaster Loans: This program, which gives a loan advance on an SBA loan and is not repaid, gets $15 billion. The target for these is small and minority-owned businesses. Learn more about the EIDL program.
- Shuttered Venue Operators Grants: Venues, such as theaters, museums, concert halls, etc. get $15 billion for grants to help these “shuttered” (closed) businesses.
Get Help For Your Business
There’s a lot in this latest coronavirus relief bill that can help your small business. Schedule a free consultation with our office. We will walk you through the options and help you understand how your business can utilize these programs to help your business survive and thrive during and beyond this pandemic crisis.