Commercial provisions in the American Rescue Plan Act of 2021

COBRA healthcare coverage

Section 9501 – Employees have new options for extending COBRA health care coverage. Former unemployed employees can get bonus assistance from April 1, 2021 to September 30, 2021.

Rental assistance to tenants – Indirect assistance to landlords

Section 3201 – Low-income tenants may be eligible for Emergency Rent Assistance benefits from a pool of $ 1.2 billion. Benefits are managed by state and local governments. These amounts are in addition to the assistance provided in December under the 2021 consolidated finance law.

Section 3202 – Emergency Housing Bonds. Low-income tenants, who are at risk of becoming homeless, can receive vouchers from a $ 5 billion pool.

Very Small Businesses – New EIDL Advances (SBA – Disaster Loans for Economic Harm)

Section 5002 – Businesses with fewer than 11 employees that have suffered a 50% loss may be eligible for an EIDL advance of $ 5,000. EIDL advances are not taxable. Chapter 9672.

Restaurants – Direct grants and other PPP loans to restaurants

Section 5003 – Restaurants (includes – “restaurant, food stand, food truck, food cart, caterer, saloon, inn, tavern, bar, lounge, brewery, tasting room, taproom, licensed facility or establishment of a producer liquor drink where the public can taste, taste or buy products, or any other similar place of business’ including restaurants in airport terminals) can benefit from PPP loan aid with a definition more flexible “affiliation” to include employees and receipts from related companies. However, the company cannot have more than 20 locations (as of March 13, 2020).

Direct grants (“Restaurant Revitalization Fund”) to restaurants are also available from the SBA to pay: payroll, mortgage, rent, utilities, maintenance, some building improvements (outdoor seating , walls, floors, terraces, furniture and equipment), supplies, food and drink costs, operating expenses and paid sick leave. Any money not used on time must be returned to the government. Applicants may not have requested other federal pandemic assistance. These grants are not taxable and associated tax deductions are permitted. Act. Second. 9673.

To note – Pennsylvania also offers state-funded grants to restaurants hard hit by the COVID virus. Apps for Allegheny County restaurants will be available on March 15, 2021. Information for others Pennsylvania counties can be found here.

Employee Retention Tax Credit – Employer Payroll Tax Credit

Section 9651 (26 USC § 3134) – Congress expands access to retention credit to “recovery start-ups” (businesses started after February 15, 2020). The retention tax credit is based on the first $ 10,000 of salary. This completes IRS guide published in January and March 2021. Notice 21-20.

© 2021 Strassburger McKenna Gutnick and GefskyReview of national legislation, volume XI, number 70


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