NASE News

American Rescue Plan

Biden Administration Advances Ambitious $1.9 Trillion Covid Relief Package

The Biden Administration has announced an expansive relief package covering every aspect of the American economy in an effort to continue to fight the Covid pandemic. The package includes a continued emphasis on small business relief.

Small Business Highlights include:

Amendments to the Paycheck Protection Program:

 - Eligibility of Certain Organizations
  ~  Non-profit organizations are eligible to receive a covered loan if the organization employs no more than 500 employees per physical location.

  ~  Non-profit entities are eligible for a covered loan if the non-profit entity does not receive more than 15% of its receipts from lobbying activities and if the cost of lobbying activities did not exceed $1,000,000 during the most recent tax year that ended prior to February 15th, 2020 and if the non-profit entity employs no more than 300 employees.

Eligibility for 2nd draw loans
 - 
Eligibility of Internet Publishing Organizations
  ~  Internet-only periodical publishers engaged in the collection and distribution of local or regional and national news and information will be eligible for a covered loan for the continued provided news, information, content and emergency information if the organization employs no more than 500 employees, or the size standard established by the Administrator for the North American Industry Classification code and that the organization makes good faith efforts to ensure that the loan will be used to support local or regional news.

 - Second Draw Loans
  ~  Changing PPP funding from $806.4B to $813.7B
  ~  Any money not otherwise appropriate by the Treasury for fiscal year 2021 will be appropriated to the Small Business Administrator, and $7.25B will remain available.

Support for Restaurants
 - There will be $25B appropriated to the Restaurant Revitalization Fund (in addition to amounts otherwise made available). Of the appropriated funds, $5B will be made available to eligible entities with gross receipts of no more than $500,000 and $20B will be made available to the SBA Administrator to award grants in an equitable manner to eligible entities of different sizes based on annual gross receipts.

Community Navigator Pilot Program
 - The Community Navigator Program refers to outreach, education and technical services provided to community navigators that target eligible businesses to increase awareness of programs of the SBA.
  ~  Community Navigators refers to a community organization, a community financial organization of the SBA or any other private non-profit organization engaged in the delivery of community navigator services. Eligible businesses include: small business concerns owned and controlled by women, veterans, and socially and economically disadvantaged small businesses.

  ~  In addition to amounts otherwise made available, there will be $100M appropriated for the Community Navigator Program by the Treasury.

Shuttered Venue Operators
 - There will be $1.25M to be used for the Economic Aid to Hard Hit Small Businesses, Nonprofits and Venues Act, of which $500,000 will be used to provide technical assistance to assist applicants access the System for Award Management or to assist applicants with alternative grant applications.

Direct Appropriations
 - $840M has been appropriated to the Small Business Administrator for Administrative expenses including to prevent, prepare for and respond to the COVID-19 pandemic, domestically and internationally.

 - $460M will be appropriated to carry out the disaster loan program, of which $70M will be used for the cost of loans and $390M will be used for administrative costs to carry out the program.

Courtesy of NASE.org
https://www.nase.org/about-us/nase_news/2021/02/26/american-rescue-plan