2021 Small Business Relief Resources
New financial resources are available for small businesses as a result of the latest federal stimulus bill.
On Sunday, December 27, 2020 the President signed HR 133, the Consolidated Appropriations Act, 2021. This Act provides a roughly $900 billion spending package to bolster the U.S. economy amid the continued spread of COVID-19.
As part of an end-of-year pandemic relief package, Congress has passed several changes to the Paycheck Protection Program (PPP) and created a “Second Draw” PPP for small businesses who have exhausted their initial loan. Other changes impact eligibility for initial PPP loans, the loan forgiveness process, and the tax treatment of PPP loans.
Congress has also made changes to other programs – including Economic Injury Disaster Loans (EIDL Program), the Employee Retention Tax Credit, a Venue Grant program, and SBA loan programs –that will benefit small businesses.
(Source: US Chamber of Commerce Guide to Small Business COVID-19 Emergency Loans)
Paycheck Protection Program (PPP)
· $284 billion designated for 2nd round PPP funding.
· Eligibility includes businesses and nonprofits with fewer than 300 employees, that have exhausted their first PPP loan, and have seen a reduction in revenue of 25% in a single quarter of 2020 compared to the same quarter in 2019.
· Application deadline is March 31, 2021.
· Contact your bank/lender to apply or apply through the Indy Chamber here.
Employee Retention Tax Credit
· The prior ERTC credit was 50% on $10,000 in qualified wages for the whole year (or a maximum of $5,000 per employee). The new credit is 70% on $10,000 in wages per quarter (or a maximum $14,000 per employee through June 30th). Employers can now also receive both the Employee Retention Tax Credit and a PPP loan, just not to cover the same payroll expenses.
· Credit expires June 30, 2021
· Contact your tax preparer and payroll company for documentation guidance.
Grants for Shuttered Venues
· $15 billion grant program for eligible live venue operators or promoters, theatrical producers, live performing arts organization operators, museum operators, motion picture theatre operators, or talent representatives that have experienced at least a 25% drop in revenue.
· Grants must be used for specified expenses such as payroll costs, rent, utilities, and personal protective equipment and may not be combined with PPP loan
· Deadline to apply is not yet announced
· Apply through the SBA
Helpful Resources to Learn More:
· READ: US Chamber Small Business Update: The Latest Stimulus Details and Changes to PPP
· WATCH & READ: the US Chamber Jan 5 webinar Small Business Update: New Stimulus for Small Business
· READ: US Chamber of Commerce Guide to Small Business COVID-19 Emergency Loans
· REGISTER: for the next Small Business Update - January 19 at 2pm.