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American rescue plan can save our businesses

Posted by: George Swift on Tuesday, March 16, 2021

From the 3-16-2021 American Press, Page B1

Congress passed and President Biden signed the $1.9 trillion act known as The American Rescue Plan. Regardless of your political or philosophical beliefs about the size of the bill or the items contained in the plan, Southwest Louisiana will benefit tremendously from this legislation.

We urge every businesses owner and especially every restaurant owner to check out the benefits.

The impact of this legislation is huge with funds for vaccines, schools and universities, healthcare, housing, rental assistance, homelessness and much more.

Here are a few highlights:

State and Local Aid

The bill contains a total of $350 billion for the Coronavirus Relief fund — direct aid to states, counties, and cities. There is a total of $130.2 billion for counties and cities, divided evenly. Allocations will be determined based on population.

Child Tax Credit

The bill expands the 2021 child tax credit to $3,000 annually per child aged 6-17 and $3,600 for children under 6 and makes the credit fully refundable in 2021. According to some observers this could cut child poverty in half.

Unemployment

The extension of Federal Pandemic Unemployment Compensation (FPUC) benefits provides $300 per week in supplemental unemployment aid through Sept. 6, 2021.

Direct Payments to Individuals

Individuals will receive $1,400 per person, bringing the total relief to $2,000 per person. (In December, Congress enacted a COVID relief package that provided a direct payment of $600 per person.) Under the bill, single filers with incomes up to $75,000, head of household filers with incomes up to $112,500 and joint filers with incomes up to $150,000 will receive the full payment of $1,400. The payment phases out with individuals earning $80,000 and the limit for couples is $160,000.

Paycheck Protection Program

The bill includes $7.25 billion in additional lending authority for PPP and expands eligibility to include 501(c) nonprofits of all sizes and types, except for 501(c)4 lobbying organizations.

Restaurant Revitalization Fund

The bill increases the funding allocation for a new program at the SBA to offer assistance to restaurants and bars impacted by the pandemic from $25 billion to $28.66 billion. Five billion of those funds are set aside for smaller establishments with less than $500,000 in 2019 annual revenue. During the first three weeks, applications from restaurants owned and operated by women, veterans, and

Socially and economically disadvantaged individuals will receive priority consideration.

Economic Injury Disaster

Loans (EIDL)

The bill provides $15 billion for targeted EIDL advances to help those entities who applied for relief in 2020 but did not receive the full $10,000 grant.

Our area has been hit harder than any in the nation.

In addition to Covid impact, two major hurricanes and the ice storm devastated our homes and businesses. Even though this legislation is for Covid relief, these funds can save many of our businesses and restaurants. Even though none of our Louisiana Congressmen and Senators voted for this bill, Louisianans are eligible for the benefits and we urge all businesses especially restaurants to act quickly. Talk to your accountant and local banker to determine the path best for you. Our Alliance and McNeese Economist Dan Groft estimates our fiveparish region will receive between $300 and $350 million in funds for individuals and families. This will spur spending at high levels and can save our families and businesses from financial ruin.

For details on the legislation visit allianceswla.org.

 

 

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