Business Update on American Rescue Plan

Business Update on American Rescue Plan-March 22, 2021
Posted on 03/23/2021
Rescue Plan

FEDERAL RESOURCES 

American Rescue Plan
All funding programs below will be administered by the Small Business Administration (SBA).





Economic Injury Disaster Loans (EIDL)

Click here for more information

  • +$15 billion
  • For businesses who did not receive the full amount or received no loan at all in 2020
  • As of March 11 – SBA announced extended deferment periods for all disaster loans, including Covid-19 EIDL program until 2022

Restaurant Revitalization Fund (RRF) – COMING SOON!

  • $28.6 billion total available funding
  • Tax-free Federal Grant. Eligible expenses include:
    • Payroll
    • Principal or interest on mortgage obligations
    • Rent
    • Utilities
    • Maintenance
    • Supplies
    • Food and beverage inventory
    • Operational expenses
    • Paid sick leave

Grants equal the amount of pandemic-related revenue loss for period from 2/15/20-12/31/20 IF:

  • Applicant is not a publicly traded company
  • Has no more than 20 locations as of 3/13/20
  • Good faith certification that the uncertainty of current economic conditions makes it necessary to request the grant to support ongoing operations
  • Applicant has not applied or received a “Shuttered Venue Operators” grant

Shuttered Venue Operators Grant (SVOG)

  •  Opening on/around April 8, 2021
  • +$1.25 billion in funding
  • Tax-free Federal Grant
  • Information webinar on March 30th from 2:30-4:00 pm ET – Register Here

PREPARE for the Application by:

  • Reviewing the Shuttered Venue Operators Grant Preliminary Application Checklist
  • Preparing 2019 and 2020 financial statements, including month-by-month breakdown of revenues
  • Calculate the average number of employees that business had 3/1/19-2/29/20

Eligible Businesses must be defined as:

  • Live venue operator/promoter
  • Theatrical producer
  • Live performing arts organization operator
  • “Relevant” museum operator
  • Motion picture theater operator
  • Talent representative under the Economic Aid Act
  • Business is not a publicly traded company
  • Business must have been fully operational on 2/29/20
  • Experienced reduction in gross earned revenue at least 25% during one quarter in 2020 vs 2019
  • Recipient intends to resume its respective operations
  • Business can apply for both PPP and SVOG grants
  • Click here for an FAQ

Payroll Protection Program (PPP) Click here for more information

  • +$7.25 billion in funding
  • Expansion of eligibility to include 501(c) and larger non profits
  • Fewer than 300 employees
  • Does not receive more than 15% of its receipts from lobbying activities
  • Lobbying activities must not compromise more than 15% total activities
  • Cost of lobbying activities for most recent tax year ending prior to 2/15/20 must not exceed $1 million
  • 501(c)(3) organizations that employ no more than 500 employees per physical location are now eligible for first draw PPP loans
  • Internet-only news or periodical publishers, or organizations that are majority owned or controlled by such:
  • Fewer than 500 employees per physical locations or meet NAICS size standard
  • Certify in good faith that proceeds of the loan will be used to support expenses at the component of the business concern or organization that supports local or regional news. 

LOAN FORGIVENESS
For applications received after 3/10/21: Expanded criteria to include payments made for premiums on behalf of individuals who qualify for COBRA health insurance continuation coverage.

NEW: Community Navigator Pilot Program - Click here for more information

  • $100 million
  • Eligible organizations include those supporting efforts to improve access to Covid-19 pandemic assistance programs and resources, as well as create a telephone hotline.

STATE RESOURCES

 CA Small Business Covid-19 Relief Grant ProgramClick here for more information

  • Grants available for up to $25,000
  • Not a first come first serve grant
  • Applicants who submitted their application all necessary documentation in the first round do not need to reapply
  • Qualified applicants will be automatically rolled over into the next funding round for consideration
  • Eligible organizations include those supporting efforts to improve access to Covid-19 pandemic assistance programs and resources, as well as create a telephone hotline.

Round 4: March 16-23

  • Only open for non-profit culture institutions that did not receive funding in rounds 1, 2, and 3.
  • Must complete new application even if previously applied

Round 5: March 25-31

  • Includes applicants that have been waitlisted for rounds 1, 2, and 3 and new applicants that have not applied for any rounds.
  • No need to reapply

Round 6: TBD