On March 11, 2021, President Biden signed H.R. 1319, the American Rescue Plan Act (ARPA). This $1.9 trillion stimulus bill includes $50 billion in initiatives designed to help small businesses through loans, grants, and other programs.
ARPA Modifies the Paycheck Protection Program
The American Rescue Plan Act provides additional relief for the nation’s small businesses and hard-hit industries for programs the SBA is currently administering and adds new efforts, including:
- $7.25 billion additional for the Paycheck Protection Program, including to expand eligibility to additional nonprofits and digital news services
- $1.25 billion added to the SBA’s Shuttered Venue Operators Grant (SVOG) program. Entities eligible to apply include live venue operators or promoters, theatrical producers, live performing arts organization operators, museum operators, motion picture theater operators, and talent representatives. SVOG grants are equal to 45 percent of the applicant’s gross revenue in 2019 with a $10 million maximum. Eligible applicants can receive both the SVOG grant and a PPP loan.
- $15 billion additional for Targeted Economic Injury Disaster Loan Advance (EIDL) payments. To be eligible, the applicant must be located in a low-income community and have suffered a loss due to COVID-19.
- $10 billion allocated for entities with 300 or fewer employees that have suffered an economic loss of more than 30%, and that applied for a Targeted EIDL Advance previously, but did not receive the full amount to which they were entitled ($1,000 per employee up to $10,000). In addition, $5 billion is allocated to provide grants of $5,000 to eligible entities that have suffered an economic loss of more than 50% and have no more than 10 employees.
- NEW: $28.6 billion for the Restaurant Revitalization Fund for industry-focused grants, Entities eligible to receive an RRF grant include a restaurant, food cart, caterer, bar, lounge, brewpub, tasting room, or other similar place of business in which the public or patrons assemble for the primary purpose of being served food or drink. Eligible businesses must not operate more than 20 locations. The grants may be used for certain eligible expenses including payroll, mortgage, rent, utilities, supplies, paid sick leave, maintenance expenses, food and beverage expenses, and operational expenses.
- NEW: $100 million to establish a Community Navigator pilot program; grants will go to eligible organizations supporting efforts to improve access to COVID–19 pandemic assistance programs and resources.
- $175 million allocated to establish a 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. This includes $100 million in grants to be awarded to organizations to help small businesses take advantage of the available relief programs and $75 million for outreach and education programs.
APRA Expands Categories of Nonprofits Eligible for PPP
ARPA also expands the categories of nonprofits eligible for the PPP. It creates a new category called “additional covered nonprofit entity”, which includes nonprofits listed in Sec. 501(c) of the Internal Revenue Code other than those listed in Secs. 501(c)(3), (c)(4), (c)(6), or (c)(19). To be eligible, the additional covered nonprofit must not employ more than 300 people and must meet certain limits on its lobbying activities. ARPA also grants eligibility to certain larger nonprofit organizations that employ not more than 500 employees per physical location.
Trust the Professionals at Goldin Group
At Goldin Group LLC, we can help small businesses with PPP loans, ARPA grants and loans, taxes, and all other accounting needs. We understand that as a business owner or non-profit manager, keeping up with accounting and taxes is time-consuming and can even be overwhelming. We work with nonprofits and businesses, offering a one-stop-shop for financial services. If you are a nonprofit looking to outsource your accounting or if you need help managing any aspect of your nonprofit’s finances, we would love to hear from you! Call us at (301) 913-0008 or email firstname.lastname@example.org to make an appointment.