This section is based on Main Street Alliance’s Covid-19 Business Resource List 

Background Small Business COVID Relief in American Rescue Plan

On March 10, Congress passed the American Rescue Plan (H.R. 1319) that provides additional relief for small business in mitigating the ongoing COVID-19 pandemic and its effects on the economy. President Biden signed the $1.9 trillion package into law on March 11. The Rescue Plan includes new GRANT programs to heavily impacted industries, improvements to existing programs like the Employee Retention Credit (ERC) and the Families First Coronavirus Response Act (FFCRA), as well as important economic provisions such as another round of direct checks, extended unemployment benefits, and health care support.  

• American Rescue Plan Supporting Small Businesses and Farmers Fact Sheet

• American Rescue Plan Small Business FAQ (pp. 18-19)

 ECONOMIC INJURY DISASTER LOAN (EIDL) PROGRAM

• Provides an additional $15 billion for EIDL Advance program. This grant may be in addition to any EIDL Advance or EIDL targeted grant that entity has received.

  • Beginning 28 days after enactment directs SBA to make any remaining funding available for $5,000 supplemental grants to “severely impacted” small businesses that: 

    • Have suffered a loss of at least 50 percent;

    • Are located in a low-income census tract as defined by section 45D(e) of the Internal Revenue Code; and

    • Have ten employees or fewer.

  • In the event funding remains available after 42 days, the revenue loss threshold is lowered to 30 percent, allowing “substantially impacted” businesses to apply for the $5,000 supplemental grants. 

• EIDL grants are tax exempt.

• Effective immediately, applicants can send a request for reevaluation of a Targeted EIDL Advance application that was declined to the following email address: TargetedAdvanceReevaluation@sba.gov 

Applicants should follow these instructions when requesting a reevaluation:

• Send an email to TargetedAdvanceReevaluation@sba.gov 

• Use the subject line “Reevaluation Request for [insert your 10-digit application number]”

• In the body of the email, include identifying information for the application such as application number, business name, business address, business owner name(s) and phone number

• Important: Include an explanation and any documentation that addresses the reason for the decline, if available. SBA will contact applicants if additional documentation is required to complete the review.

• FOR MORE INFORMATION:

  • SBA COVID-19 EIDL Overview 

  • EIDL Loan FAQ (updated Feb. 4, 2021)

  • Targeted EIDL Advance FAQ (from H.R. 133, updated Feb. 1, 2021)

  • SBA Cross-Program Eligibility
     

RESTAURANT REVITALIZATION FUND 

1. Provides $28.6 billion for a NEW Restaurant Revitalization Fund, modeled on the widely-supported, bipartisan RESTAURANTS Act, which will provide flexible grants through the SBA. To provide comprehensive support to local restaurants, grants from the fund could be used alongside first and second Paycheck Protection Program (PPP) loans, SBA Economic Injury Disaster Loan assistance, and the Employee Retention Tax Credit.

   1. $5 billion of this amount is set aside for businesses with less than $500,000 in 2019 annual revenue for the first 60 days of the program. 

   2. During the initial 21-day period, the administrator will prioritize awarding grants to eligible entities that are owned or controlled by women or Veterans or are socially and economically disadvantaged businesses.

2. Grants are available for up to $10 million per entity, with a limitation of $5 million per physical location (entities are limited to 20 locations).

3. Grants are calculated by subtracting 2020 revenue from 2019 revenue.

4. Grants are tax-exempt.

5. During the first 21 days, applications from restaurants owned and operated controlled by women, veterans, or socially and economically disadvantaged individuals will receive priority.

6. Grants may be used for a wide variety of expenses, including payroll, mortgage, rent, utilities, supplies, food and beverage expenses, paid sick leave, and operational expenses.

• FOR MORE INFORMATION:

  • Sign up for RRF updates here

  • SBA RRF home page

  • Independent Restaurant Coalition (IRC) FAQ

  • IRC Prep Guide
     

 SHUTTERED VENUE OPERATORS GRANT (SVOG) PROGRAM 

1. This new SBA Shuttered Venue Operators Grant SVOG program that was approved in the December relief bill (H.R. 133) now includes a critical fix from the American Rescue Plan that makes entities eligible for SVOG, regardless of whether they have received a second draw PPP loan or a first draw PPP loan issued after December 27, 2020 (deducting the PPP loan amount from the grant amount). However, once an entity applies for SVOG, they can no longer apply for PPP. 

   1. If an entity applied and was approved for a PPP loan prior to Dec. 27, 2020, it is eligible to apply for an SVOG.

2. Provides an additional $1.25 billion for the SBA Shuttered Venue Operators Grant Program, including a set aside for technical assistance to help entities apply for grants.   

   • Sign up to receive more information about the portal here.

• FOR MORE INFORMATION: 

  • SBA SVOG FAQ (updated April 8, 2021)

  • Watch video tutorials, including how to register on the System for Award Management (SAM.gov), a federal requirement to receive an SVOG

  • Review a Preliminary Application Checklist to help you gather documents and other information that may be needed (updated March 11, 2021)

  • Check an Eligibility Requirements Chart to help determine qualifications

  • SBA Cross-Program Eligibility
     

CHILD CARE STABILIZATION GRANTS 

1. Provides $24 billion for Child Care Stabilization grants.

   1. Child care providers are eligible for assistance if they are 1) an eligible-provider as defined in the Child Care and Development Block Grant Act, or 2) a licensed, regulated, or registered provider in their state on the date of enactment of American Rescue Plan. 

   2. Providers can be open, or temporarily closed due to COVID-19. 

   3. Subgrants can be used for a variety of expenses, such as personnel expenses; rent, mortgage, and utility payments; cleaning supplies and personal protective equipment; mental health services for children and staff; and other activities to maintain or resume operations of the child care provider. 

   4. States must base subgrant amounts on the child care provider’s stated current operating expenses. A child care provider that receives funds must certify that for the duration of the subgrant, the child care provider will: 

      1. implement policies in line with guidance from State, Tribal, and local authorities, and to the greatest extent possible, guidance from the Centers for Disease Control and Prevention; 

      2. pay no less than the full compensation the provider was paying each employee on the date of submission of the application for the subgrant; and 

      3. provide relief from copayments and tuition payments to families enrolled in the provider’s program, to the greatest extent possible, and prioritize such relief for families struggling to make either type of payment. 

2. Provides additional $15 billion for Child Care Development and Block Grant (CCDBG) on top of $10 billion approved in December relief bill (H.R. 133). 

• FOR MORE INFORMATION:

  • CLASP Fact Sheet, including state-by-state funding estimates 
     

EMPLOYEE RETENTION CREDIT (ERC) 

1. Expands the ERC to (1) allow the hardest hit businesses to count all wages paid as qualifying wages, not just those wages paid to employees that are not providing services and (2) allow certain start-up businesses to be eligible for the credit. 

2. The provision also clarifies that (1) employers that were not in existence in 2019 must use their average number of 2020 employees for purposes of determining the credit wage base and (2) qualified wages do not include wages taken into account as payroll costs under certain Small Business Administration programs.

3. Extends the ERC through December 31, 2021.

• FOR MORE INFORMATION:

  • NEW! IRS ERC Guidance for First and Second Calendar Quarters of 2021 as amended by the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (Relief Act), enacted December 27, 2020.

  • IRS ERC Guidance (including 70 FAQs) as it applies to qualified wages paid after March 12, 2020, and before January 1, 2021.

  • PLEASE NOTE: These FAQs DO NOT reflect the changes made by the American Rescue Plan Act of 2021 (ARP Act), enacted March 11, 2021. 

    • The ARP Act modified and extended the employee retention credit for the third and fourth quarters of 2021.

  • National Law Review ERC Fact Sheet (updated March 23, 2021)
     

FAMILIES FIRST CORONAVIRUS RESPONSE ACT (FFCRA) 

1. Extends the Families First Coronavirus Response Act (FFCRA) tax credits from March 31 to September 30.

2. Increases the total amount of wages an employer can claim the credit in a year from $10,000 to $12,000 per employee. 

3. Eliminates the requirement that the first two weeks of Emergency Family and Medical Leave (EFML) be unpaid. Now, if an employee qualifies for EFML, they are eligible for a full 12 weeks of paid leave (assuming they have not previously used any EFML or other leave under the Family and Medical Leave Act).

4. Expands the purposes allowed for longer-term paid family leave to match all of the purposes for shorter-term paid sick leave (personal health and family caregiving, in addition to caring for a child whose school or place of care has closed).

5. Allows credits for an employee who is receiving a vaccination, recovering from its side effects, or awaiting the results of a COVID-19 diagnosis or test if either the employee has been exposed to COVID-19 or the employer requested the test or diagnosis.

6. Resets the 10-day/80-hour limit for Paid Sick Leave starting April 1, 2021. This means, if employees have previously exhausted their entitlement to Paid Sick Leave under FFCRA, they now have another 10-days/80-hours for use.

7. Prevents employers from claiming the credit if they make leave available in a manner that discriminates in favor of highly compensated employees, full time employees, or based on employment tenure with the employer.

• FOR MORE INFORMATION:

  • New IRS Fact Sheet (April 21, 2021)

  • IRS FFCRA FAQ (updated January 28, 2021)

  • PLEASE NOTE: These FAQs DO NOT currently reflect the changes made by the American Rescue Plan. The American Rescue Plan Act of 2021, enacted March 11, 2021, amended and extended the tax credits (and the availability of advance payments of the tax credits) for paid sick and family leave for wages paid with respect to the period beginning April 1, 2021, and ending on September 30, 2021. 

  • National Law Review FFCRA Fact Sheet (updated March 23, 2021)

COMMUNITY NAVIGATOR PILOT PROGRAM

1. Establishes the $175 million Community Navigator pilot program to increase awareness of and participation in COVID-19 relief programs for business owners currently lacking access, with priority for businesses owned by socially and economically disadvantaged individuals, women, and veterans.

2. Allows for grants to, or contracts or cooperative agreements with, private nonprofit organizations, SBA resource partners (SBDCs, WBCs, SCORE chapters*), States, Tribes, and units of local government to ensure the delivery of free community navigator services to current or prospective owners of eligible businesses in order to improve access to assistance programs and resources made available because of the COVID–19 pandemic by Federal, State, Tribal, and local entities.

3. Promotes outreach and education of the navigator services and COVID-19 assistance by: 

   1. conducting outreach and education, in the 10 most commonly spoken languages in the United States;

   2. improving SBA’s website to describe such community navigator services and other federal programs; 

   3. implementing an education campaign by advertising in media targeted to current or prospective owners of eligible businesses; and 

   4. establishing a telephone hotline to offer information about Federal programs to assist eligible businesses and offer referral services to resource partners, community navigators, potential lenders and other appropriate experts.

4. Authorizes the pilot program through December 31, 2025.

 SMALL BUSINESS OPPORTUNITY FUND 

1. Provides $10 billion through a reauthorized State Small Business Credit Initiative program created following the Great Recession (to establish or support loan participation programs, venture capital programs, collateral support programs, loan guarantee programs, and capital access programs) to support up to $100 billion in small business financing through state, territorial, and tribal government programs. 

   1. Includes up to $2.5 billion to support business enterprises owned and controlled by socially and economically disadvantaged individuals, including minority-owned businesses.

   2. Provides $500 million for tribal government programs, and $500 million to provide technical assistance to small businesses that need legal, accounting, financial and other kinds of advice in applying for small business support programs. 

   3. Requires states and other jurisdictions to submit a plan on how it would expeditiously deliver funds to help small businesses respond to and recover from the pandemic, and a plan to encourage participation of minority depository institutions (MDIs) and community development financial institutions (CDFIs) in the program.
       

HEALTH CARE 

1. Reduces health care premiums for low- and middle-income families by increasing the Affordable Care Act’s (ACA) premium tax credits for 2021 and 2022.

2. Provides full premium coverage for COBRA continuation coverage for eligible individuals and families from the first of the month after enactment through September 30, 2021.
   - Employers will obtain the subsidy, to be passed along to COBRA enrollees, through a payroll tax credit against employers' quarterly taxes.Background Small Business COVID Relief in American Rescue Plan