If you own a business that has been affected by the COVID-19 pandemic, you may have received help from the government – or you may not. But in either case, you may be interested in new support opportunities.
President Biden signed a law extending the Paycheck Protection Program (PPP) application deadline from March 31 to May 31, 2021. So if you haven’t received a P3 loan yet – or even if you have it, and you are eligible for a “second draw” loan – you have another chance.
As you may be aware, a PPP loan can be fully canceled, including interest, if the loan proceeds are used for qualifying expenses such as staff costs (including benefits), mortgage interest, rent, utilities, operating expenses, property damage, supplier costs. and labor protection expenditure.
The recently enacted American Rescue Plan Act (ARP) also strengthens the PPP, providing $ 7.25 billion in additional aid and expanding eligibility for certain nonprofits and local digital news services. And other recent changes to the P3 program were designed specifically to help small businesses.
In addition to these PPP benefits, ARP includes other components that can help business owners, including the following:
- Economic disaster loan (EIDL) – The ARP allocated $ 15 billion to the Small Business Administration (SBA) to provide additional EIDL advances of $ 10,000 to qualifying businesses.
- Sick and family leave tax credit – The ARP extends the tax credit for sick leave and family leave until September 30, 2021, increases the salary covered by the credit to $ 12,000 per worker (from $ 10,000) and extends the number of days covered for self-employed to 60 (from 50).
- Subsidy program for closed site operators – ARP is adding $ 1.25 billion to this program, which covers live theater operators or promoters, theater producers, operators of performing arts organizations, theater operators and qualified museums, zoos and aquariums. Businesses can now apply for a PPP loan and a Shuttered Venue grant.
- Restaurant Revitalization Fund – Catering establishments have been particularly affected by the pandemic. To help the industry recover, ARP created the $ 28.6 billion Restaurant Revitalization Fund, which provides direct grants to restaurants and other eligible food operations.
To learn more about PPP loans, as well as the other programs mentioned above, visit the Small Business Administrations Coronavirus Control website at www.sba.gov/coronavirusrelief.
You can also contact your tax advisor to discuss other aspects of ARP that could affect you, such as employee retention credit. The ARP extended this tax credit until the end of 2021 and broadened it to include ârecovery start-upsâ that started operations after February 15, 2020 and have annual gross receipts of 1 million dollars or less.
Running a business is never easy – and for many business owners this past year has truly posed an existential threat. Hopefully, as widespread immunizations help bring the pandemic under control, we’ll soon see a return to more normal times. Until that day arrives, you may find that the latest relief measures can help keep you moving forward.
Biography of local resident John-Paul:
Hello, my name is John-Paul Tancona and I am a financial advisor at Edward Jones. I have over 19 years of experience in this sector, working with institutional and individual investors.
John Paul I graduated from Villanova University in 2000 and immediately began my years journey in the world of finance. My first 13 years were spent working in high profile wealth management companies covering large institutional investors. Recently, I joined Edward Jones and focused on educating and empowering individual investors so that they can achieve all of their financial goals.
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