Highlights from the American Rescue Plan

President Biden signed H.R. 1319 – American Rescue Plan Act of 2021 on March 11, 2021.  The bill will provide $1.9 billion in new resources to local communities, states, small businesses, and workers impacted by the COVID-19 pandemic.  Below are key elements of the bill.

  • $1,400 stimulus checks for individuals making up to $75,000 and $2,800 for couples making up to $150,000, plus $1,400 for each dependent.  This funding, added to the $600 approved in December 2020, constitute the $2,000 Economic Recovery Payments President Biden proposed in the American Rescue Plan

    • For Single Taxpayer: Full payment below $75,000; cutoff at $80,000 

    • Taxpayers Filing Head of Household:  Full payment below $112,500; cutoff at $120,000

    • Married, Filing Jointly:  Full payment below $150,000; cutoff at $160,000

  • Adding $300 to weekly unemployment checks

  • Extending Unemployment Insurance and Pandemic Unemployment Assistance benefits from 50 weeks to 74 weeks (March 14 to September 6, 2021)

  • Expansion of the federal Earned Income Tax Credit, including certain elderly and childless adults

  • Increase in qualified family leave wages under the Paid Family Leave Tax Credit from $10,000 to $12,000

  • $350 billion for grants to states, territories, tribal governments, cities, and counties

  • $14.9 billion for the Child Care and Development Block Grant

  • $25 billion for the Restaurant Revitalization Fund to support restaurants that have experienced a revenue loss due to COVID-19, including: a food stand, food truck, food cart, caterer, saloon, inn, tavern, bar, lounge, brewpub, tasting room, taproom, licensed facility or premise of a beverage alcohol producer where the public may taste, sample, or purchase products, or other similar place of business in which the public or patrons assemble for the primary purpose of being served food or drink

  • $15 billion for a targeted cash advance under the SBA Economic Injury Disaster Loan Program

  • $10 billion and reauthorization of the State Small Business Credit Initiative Act of 2010

    • Includes a separate allocations for tribal governments and business enterprises owned and controlled by socially and economically disadvantaged individuals

    • Requires states to provide a plan detailing how minority depository institutions and community development financial institutions will be encouraged to participate in state programs

    • Provide funds to states to carry out a technical assistance plan under which a state will provide legal, accounting, and financial advisory services, either directly or contracted with legal, accounting, and financial advisory firms, with priority given to business enterprises owned and controlled by socially and economically disadvantaged individuals, as well as to very small businesses

  • $7.25 billion for the Paycheck Protection Plan, plus changes to the definition on nonprofit, second draw loans, forgiveness

  • $3 billion Economic Development Administration

  • $1.2 billion for Shuttered Venue Operators, including $500,000 for technical assistance

  • $175 million for the Community Navigator Pilot Program which funds community navigator services provided through nonprofits, which includes the outreach, education, and technical assistance provided by community navigators that target eligible businesses to increase awareness of, and participation in, programs of the Small Business Administration

  • Provides tax exemption for student loan forgiveness previously authorized

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