Details of the Stimulus Package for Small Businesses
In broad strokes, the American Rescue Plan allocates significant funding for various different efforts working toward supporting struggling businesses in the US. The total funding that is earmarked for businesses totals up to a whopping $50 billion. A large part of this is the $7.25 billion infusion of funding to the Paycheck Protection Program, that would allow for small businesses to take out a completely forgivable loan.
The caveat for these loans to be forgiven would be how the business owner uses those funds. If over 60% of the money is spent maintaining their current payroll with the rest of it going toward various expenses, including mortgage or rent, PPE, or utilities (along with other smaller business expenses), the loan will be 100% forgiven. Eligibility would expand under the newest version of the stimulus package as well.
An additional $10 billion will also be added to the State Small Business Credit Initiative allowing for state governments to provide low interest loans and other investments to help struggling small businesses in the states.
For businesses in industries that are particularly struggling, the stimulus package contains focused relief that was also portioned out in order to stave off financial ruin. More specifically, this includes industries that have suffered as a direct result of government placed regulations in order to limit the spread of the virus. For small and mid-sized restaurants, a relief program that offers grants has been created with about $25 billion in funding.
This is also the case for venues and other public spaces which have remained closed due to government restrictions. Businesses within this industry will have access to an additional $15 billion, which has been added to the Shuttered Venue Operators Grant Program.
The extensive, new funding to the many different programs designed for small business owners comes as a sign of the oncoming economic recovery over the year. Keeping small businesses open and operating will be a major point of focus as the US economy begins to rebound from the pandemic.
About the Author
Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.