What You Need to Know About the American Rescue Plan Act
With the continual release of new information regarding stimulus packages and aid for small businesses, it can be difficult to sift through all that information to find out what resources are most relevant for you and your business.
Choice is dedicated to providing our business customers with all the important information they need to know, and the new American Rescue Plan Act offers several programs that may be able to provide your business with additional financial support during the COVID-19 pandemic.
The American Rescue Plan Act provides additional relief for small businesses and particularly hard-hit industries by administering funds to the SBA’s current programs and to new efforts described below. The act also includes an additional $7.25 billion designated for the PPP.
Shuttered Venue Operators Grant
The American Rescue Plan Act allocated additional funds for the Shuttered Venue Operators (SVO) grant, which provides financial assistance to eligible entertainment venues. The program includes $15 billion in grants for shuttered venues. Eligible applicants may qualify for SVO grants equal to 45% of their gross earned revenue, with $10 million being the maximum amount for a single grant. Businesses can now apply for both a PPP loan and SVO grant.
Eligible entities include:
- Live venue operators or promoters
- Theatrical producers
- Live performing arts organization operators
- Relevant museum operators, zoos, and aquariums who meet specific criteria
- Motion picture theater operators
- Talent representatives, and
- Each business entity owned by an eligible entity that also meets the eligibility requirements
Other requirements:
- Must have been in operation as of February 29, 2020
- Venue or promoter who received a PPP loan on or after December 27, 2020 will have the SVOG reduced by the PPP loan amount
Targeted Economic Injury Disaster Loan Advance
The act also distributed an additional $15 billion to Targeted Economic Injury Disaster Loan Advance (EIDL) payments. The Targeted EIDL Advance provides advance funds up to $10,000 for businesses in low-income communities
Eligible entities:
- Are located in a low-income community
- Can demonstrate more than 30% reduction in revenue during an 8-week period beginning March 2, 2020
An additional $5 billion was allocated for Supplemental Targeted EIDL Advance payments for the hardest-hit businesses.
Restaurant Revitalization Fund
The American Rescue Plan Act established a $28.6 billion Restaurant Revitalization Fund for industry-focused grants. Through the Restaurant Revitalization Fund, an eligible business may receive a tax-free federal grant equal to its pandemic-related revenue loss.
Eligible entities:
- Own or operate 20 or fewer establishments
- Are a place of business in which the public or patrons assemble for the primary purpose of being served food or drink
- Are not publicly-traded companies
- Have not applied for or received a Shuttered Venue Operators grant
Community Navigator Pilot Program
The American Rescue Plan Act also utilized $100 million to establish a Community Navigator pilot program that will distribute grants to organizations actively improving access to COVID-19 pandemic assistance programs and resources.
Choice Bank is here to help our business customers. More information on our COVID-19 aid resources is available at https://bankwithchoice.com/covid-19/#loan-programs.
Learn more about the SBA’s relief efforts at https://www.sba.gov/funding-programs/loans/covid-19-relief-options.
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