The American Rescue Plan Act: What does this new bill mean for your business?
On March 11, 2021, President Biden signed the American Rescue Plan Act into law. This 1.9 trillion dollar COVID relief bill will allocate grants to small businesses in the form of tax credits and new funds. Unlike previous bills passed with the goal to provide aid to the American people, this one has been expanded to specifically include targeted relief for restaurants in the form of grants, additional aid, and an expansion of existing credits such as the Employee Retention Tax Credit.
Known as the Restaurant Revitalization Fund, this $28.6 billion dollar grant program will allow bars and restaurants that have been severely impacted by the pandemic to apply for grants based on lost gross revenue between 2019 and 2020; up to $5 million for restaurants and $10 million for restaurant groups. The bill's language is very inclusive, providing relief to nearly any type of foodservice including, “restaurant, food stand, food truck, food cart, caterer, saloon, inn, tavern, bar, lounge, brewpub, tasting room, taproom, licensed facility or premise of a beverage alcohol producer where the public may taste, sample, or purchase products.”
To apply as a restaurant:
First, create a login.gov user account
Sign up for a DUNS number (this typically takes 1-2 days to process)
Using your login.gov, DUNS number, and standard business info such as your Tax ID Number, register with SAM (it can take up to 2 weeks to get the SAM number.
The American Rescue Plan Act goes beyond helping just restaurants though. It has also supplied an additional $7.25 billion for the Paycheck Protection Program, including to expand eligibility to additional nonprofits and digital news services, allocate additional funds for the Shuttered Venue Operators Grant program (now allows businesses to apply for both a PPP loan after Dec. 27, 2020, and the SVOG), has provided $15 billion additional for Targeted Economic Injury Disaster Loan Advance (EIDL) payments (including a new $5 billion for Supplemental Targeted EIDL Advance payments for those hardest hit), and also a 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.)
This new bill is another dose of hope after a long hard year of adapting to life during a pandemic. Currently, over 10% of the US population has been vaccinated with the COVID-19 vaccine, and President Biden is hoping to open up access to the entire nation by May 1st.
To learn more about the American Rescue Plan Act or the Restaurant Revitalization Fund, visit the links listed below. To learn more about how Frederick Mountain Group can help you and your business grow during the COVID-19 pandemic, visit us at https://www.frederickmtngroup.com/, email us at firstname.lastname@example.org, or give us a call at 307-543-5084 for a free one-hour consultation.
Uschamber.com: “Small Business Update: American Rescue Plan Act”
SBA.gov: “American Rescue Plan Act Elevates Small Business Support in Response to COVID-19 Pandemic”