President Biden signed the US $ 1.9 trillion bailout on Thursday. The massive stimulus package was designed to ease financial hardship for millions of Americans during the COVID-19 pandemic, and also to fund a nationwide vaccination plan.
The package includes $ 1,000 billion in direct aid to citizens (many Americans will receive a check for $ 1,400) and $ 415 billion for COVID-19 vaccination programs and tests. It also allocates 440 billion dollars in aid to American companies.
Here are some aspects the historic piece of legislation that could potentially boost your small business:
$ 15 billion to the Economic Disaster Loan Program
This is money targeted for the Small Business Association’s Economic Disaster Emergency (EIDL) loans, a fund created by last year’s CARES Act that ran dry. Of the new funding, $ 5 billion will be distributed in a new round of $ 5,000 grants to smaller (those with less than 10 employees) and hardest hit small businesses.
The Paycheque Protection Program
The Paycheck Protection Program (PPP), which was established in the CARES Act, receives an additional $ 7.25 billion and is currently accepting second-round loan applications (more nonprofits are now eligible).
Extension of the employee retention tax credit
The CARES Act created a refundable payroll tax credit for businesses and nonprofits who retain employees during the COVID-19 crisis, and the US bailout extends that tax credit until until December 31, 2021. The bill also extends eligibility to startups that started after February 15, 2020.
Economic assistance to individuals and families included in the bill – which includes one-off checks, $ 3,000 in tax credits for children aged 6 to 17 and $ 3,600 for children under 6, and over $ 20 billion in emergency rent assistance – will also likely have a positive impact on small retailers. Global aid will allow millions of people to catch up with their financial obligations and put more money into the economy.
Read Sections of the Small Business Association Stimulus Plan here.
(Illustration: Getty Images)
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