What Biden's $1.9 Trillion Covid Relief Plan Means For Small Businesses

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

After weeks of debate, consternation and bipartisan compromise, the latest COVID-19 relief plan has finally passed through both chambers of Congress and is now on track to finally reach President Biden’s desk in the coming days. The $1.9 trillion package has been months in the making, and many small businesses who have sought funding from Credibly and other small business lenders are gradually running out of capital to weather what remains of the global health crisis.

The new package, titled the American Rescue Plan Act of 2021, is coming just as the benefits of the previous package, passed late in December of last year, are set to expire. In that time, small business owners have eagerly awaited the new stimulus package, with an MSNBC survey revealing that 63% of business owners approve of the measures in the bill as their confidence for what the future may hold continues to diminish.

In addition to stimulus checks that will be given to Americans making less than $80,000 annually, $160,000 for couples, as well as a $300 boost in unemployment benefits through early September, the revised bill includes several programs aimed specifically at helping struggling small businesses rebound from a year of shutdowns and other privations imposed as a result of the COVID-19 pandemic.

$22B In PPP And Emergency Loans

Among the aspects of this latest package to return from previous stimulus bills is renewed funding for forgivable loan programs, including $15 billion in targeted Emergency Injury Disaster Loans (EIDL) and $7 billion for the Paycheck Protection Program.

See also: How to Invest Your $1,400 Stimulus Check

EIDL eligibility remains unchanged from previous iterations. The new funds allow for businesses with fewer than 300 employees that have lost 30% or more of their revenue between March 2, 2020, and December 31, 2021, to apply for a loan of $1,000 per employee up to $10,000. Additionally, the Small Business Administration is also empowered to provide an additional $5,000 to businesses with fewer than 10 employees that have lost between 30% to 50% of their revenue in that same period.

Also receiving additional funding is the PPP, which has already supplied more than $662 billion to small businesses over the past 12 months and still has $284 billion of available funds. The American Rescue Plan Act adds an additional $7.25 billion to that but retains the application deadline of March 31, 2021.

Additionally, PPP eligibility has been modified, first to include online businesses with at least one physical location and fewer than 500 employees as well as larger not-for-profit entities, 501(c)(3) with fewer than 500 employees and 501(c)(6) with fewer than 300. The bill also narrows eligibility for larger companies, primarily by targeting lobbying activities in excess of $1 million or 15% of a companies activities.

$26B For Restaurants and Venues

Among the newer measures of the American Rescue Plan Act are several programs aimed specifically at those businesses most impacted by the pandemic, namely restaurants, bars and entertainment venues.

The largest of these is a $25 billion grant program designed specifically for restaurant owners. Eligible restaurants with 20 locations or fewer will be eligible for grants equal to the difference between their 2019 and 2020 revenues, up to $10 million per company and $5 million per physical location. Like the PPP loans, funds can be spent on payroll, property or supplies as well as benefits programs up to $100,000 per year.

And, while not new, the Shuttered Venues Operators program will receive an additional 1.25 billion. Venues who apply will be eligible for up to 45% of their gross earned revenue up to a maximum of $10 million.

Importantly, applicants to the Shuttered Venues Operators program cannot have received PPP loans after 2020 and must primarily be a liver performance venue Additionally, restaurants that apply for relief through the Restaurants Act and have received PPP loans may have that amount subtracted from the eligible grant total.

$175M For A Community Navigator Program

Finally, the package also earmarks $175 million for a pilot program that is aimed at increasing awareness and participation in COVID-19 relief programs, specifically for underfunded or disadvantaged communities that may not have access to the information or resources needed to successfully apply and utilize stimulus funds.

For as many businesses that have been able to take advantage of the relief measures so far enacted, hundreds more may still be struggling, unaware of the myriad economic relief they both need and deserve to continue to serve their communities.

And for those small business owners who may still be struggling, Credibly remains dedicated to working directly with enterprises of all shapes and sizes to provide fast, straightforward financing for whatever your business needs might be.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

Posted In: CrediblyGovernmentNews

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.