The American Rescue Plan: What’s in it for small businesses

The American Rescue Plan Act of 2021 was signed by President Biden on March 11, and small business owners should be aware: You may stand to benefit from its provisions.

According to CNN, the Act authorizes another $7.25 billion for the Paycheck Protection Program, the popular program that offered forgivable loans to small businesses and other organizations that may have been hurt or had to temporarily close their doors due to the pandemic. But be advised that as in previous iterations, the loans will only be forgiven if at least 60 percent of the money is used to support payroll expenses, with the remainder going to mortgage interest, rent, utilities, protective equipment, or certain other business expenses.

Restaurants have been singled out for particular support in the Act, with $25 billion allocated specifically to provide grants of up to $10 million per entity, or up to $5 million per physical location if the restaurant is a chain, according to Small Business Trends. Restaurants owned by women, veterans, and socially/economically disadvantaged individuals will be given priority.

Other grants may also be available for struggling performing arts producers, operators, and promoters. The Save Our Stages Act, signed by former President Donald Trump in Dec. 2020, will offer $15 billion grants, starting in April. According to National Public Radio, the grants will be available not just to music venues, but small movie theaters, museums, live theater venues, and even unconventional venues like zoos and aquariums.

For more information on Small Business Administration grants, guidelines and other resources, visit sba.gov.