What the American Rescue Plan of 2021 Means for Small Businesses
President Biden recently signed the latest coronavirus recovery package known as the American Rescue Plan of 2021, into law. The new bill contains a number of provisions intended to help small businesses, especially restaurants and minority-owned businesses. What does this mean for you? (See the Bill)
Tax Credits
Employers who voluntarily offer FFCRA leave are eligible for the tax credit through September 30, 2021. Additionally, employees are eligible to use FFCRA leave for obtaining their COVID-19 vaccination and recovering from illness or injury related to the vaccination. (See it in the Bill)
COBRA Insurance Premiums Covered
Beginning on April 1 until September 30, 100% of COBRA insurance premiums will be covered by the federal government for employees who lost their jobs due to the pandemic. (See it in the Bill)
Unemployment Expansion Extended
Pandemic Unemployment Assistance and Pandemic Emergency Unemployment Compensation were extended through September 6. Additionally, the federal Pandemic Unemployment Compensation program that provides an additional $300 per week was also extended through September 6. (See it in the Bill)
More Grant Money for Restaurants, Venue Operators and Minority-Owned Businesses Through EIDL
A $28.6 billion grant program was created for restaurants and bars that have lost revenue due to the pandemic. (See it in the Bill)
Money to Help States Assist Their Small Business Economies
Through the State Small Business Credit Initiative, the legislation allocates $10 billion for state governments to help leverage private capital and make low-interest loans and other investments to help their small business economies recover. (See it in the Bill)
Round 2 of Forgivable PPP Loans
Employers who previously participated in the Paycheck Protection Program may be eligible for a second PPP Loan. (See it in the Bill)
Affordable Care Act Subsidies Extended
Subsidies for individuals purchasing health insurance on the Affordable Care Act exchange are covered through 2022. (See it in the Bill)
Bailey Cummins, PHR, is a member of the HRinDemand team, a human resources company in Reno, NV, offering expert guidance and easy-to-use tools to help small businesses with employment regulations, compliance, employee relations, and company growth.
Sources:
Ogletree Deakins. (2021, March 12). American Rescue Plan Act Signed: Details on the Latest COVID-19 Relief Package. https://ogletree.com/insights/american-rescue-plan-act-signed-details-on-the-latest-covid-19-relief-package/
Society for Human Resource Management. (2021, March 11). Biden Signs Stimulus Bill with 100% COBRA Subsidy Through September. https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/stimulus-bill-provides-cobra-subsidy-through-september.aspx
Society for Human Resource Management. (2021, March 11). President Biden Signs $1.9 Trillion COVID-19 Relief Bill. https://www.shrm.org/ResourcesAndTools/legal-and-compliance/employment-law/Pages/Congress-Sends-COVID-19-Economic-Relief-Bill-to-Biden.aspx
Society for Human Resource Management. (2021, March 15). How the New COVID-19 Relief Package Impacts Employers. https://www.shrm.org/resourcesandtools/legal-and-compliance/employment-law/pages/how-the-new-covid-19-relief-package-impacts-employers.aspx