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“Make America Funded Again” – What the new Stimulus Package means for Small Business

Among the many thousands of pages of the new Stimulus Package that was finalized on December 28, 2020, here are the key takeaways which could affect you as a business leader as well as your employees and their families:

  • $1200 for couples making up to $150,000 per year
  • $600 for individuals making up to $75,000 per year
  • $600 in addition for each child dependent
  • $300/week of UI (Unemployment Insurance) is also available for all workers receiving unemployment benefits, through March 14, 2021.
  • $284 billion for further 1st and 2nd forgivable PPP loans, under the same (and partially more favorable) conditions
  • $82 billion in relief to private and public schools, including institutions of higher education
  • $45 billion in relief to transit agencies, airlines, airports, state DOTs, motorcoach industry, and our beloved Amtrak.
  • $26 billion funding for food banks and senior nutrition programs, as well as direct payments to farmers and ranchers suffering losses.
  • $25 billion in rental assistance for families impacted by COVID and struggling to make rent
  • $20 billion to BARDA for procurement of vaccines and therapeutics
  • $15 billion dedicated to fund live venues, independent movie theaters, and cultural institutions
  • $10 billion in funds to child care sector
  • $9 billion to CDC and states for vaccine distribution
  • $7 billion for broadband expansion
  • $3.5 billion for SBA debt relief payments
  • $3 billion for a national emergency stockpile of vaccines
  • and a partridge in a pear tree (a good summary of all this and more can be found here)

Communicate, communicate, communicate!

First, eligible employees can receive funding to help them through the effects of the pandemic. This should help productivity and engagement with respect to your business goals. 

Second, your business may be eligible for new PPP money – also known as the PPP Second Draw.

Third, school and childcare institutions should be able to abate your employees’ costs, if needed. Encourage your employees to speak with the institutions about relief.

Finally, relief comes in many forms. Vaccines will likely become widely available in Q1. Food banks are getting stocked up with government help, as well as many private donors. Your employees can find relief in these and other forms of help.

Apply these changes for the New Stimulus Package

The ERTC (Employee Retention Tax Credit) was also extended and expanded. For qualified wages paid after March 12, 2020, and before July 1, 2021, the legislation extends availability of the credit to the first two quarters of 2021. And effective Jan. 1, 2021, the credit amount increased to 70% of qualified wages, which includes now the cost to continue providing health benefits.

Eligibility for ERTC is for businesses, effective Jan. 1, 2021, whose operations are either fully or partially suspended by a COVID-19 lockdown order, or for a quarter in 2021, if gross receipts are less than 80% of gross receipts for the same quarter in 2019. Previously, this was if gross receipts totaled less than 50% for the same quarter in the prior year.

Suitless is here to assist you in understanding your eligibility for these credits, and leading you to the right partners. Speak with your CPA about ERTC eligibility and applicability, and your banker about PPP2 loans for your small business. 

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