Summary of Updates from American Rescue Plan Act
The American Rescue Plan Act (ARP Act), signed on March 11, 2021, provides $1.9 trillion in various forms of support to address the pandemic crisis. We will send updates on various aspects of the Act in the coming weeks. While we don’t have many details yet, we do know the ARP Act provides some additional assistance to small businesses and nonprofits.
Here are a few items of interest:
- $7.25 billion in additional PPP funding.
- The deadline to apply for PPP is still March 31, 2021. We’re watching to see if it gets extended but don’t count on it.
- Additional funding for Shuttered Venues Grants, and now allows borrowers to apply for BOTH PPP and Shuttered Venue Grants.
- $15 billion in additional Targeted EIDL funding and $5 billion for Supplemental Targeted EIDL funding for those hardest hit by the pandemic.
- $28.6 billion Restaurant Revitalization Fund to provide grants for restaurants, and
- $10 million for a Community Navigator pilot program to provide grants to eligible organizations supporting efforts to improve access to pandemic assistance programs and resources.
Here are a few of the provisions of the ARP Act affecting Employers:
- Families First Coronavirus Response Act (FFCRA) through September 31, 2021
- Provides a “reset” for Employees for an additional 2 weeks of maximum leave under FFCRA that begins April 1, 2021
- Expands the qualifying reasons for leave to include receiving and recovering from vaccination
- Employee Retention Tax Credit (ERC) is extended for eligible employers through December 31, 2021 using TY2021 measures (i.e., 70% credit on up to $10,000 per employee per quarter)
- NOTE: Three ways to access FFCRA & ERC refundable credit:
- Deferral of Employer Payroll Taxes
- Form 7200 Advance on Credits
- Quarterly Form 941
- Pandemic Unemployment Insurance (UI) Benefits extended through September 6, 2021
- $300/week in additional UI for all UI recipients
- For 2020, UI recipients with a household income of <$150,000 can deduct the first $10,200 from AGI and not incur income taxes on this amount