Get updates on the government assistance programs and available aid for small business owners.
Latest update: A third round of relief is available. Read below.
Finally, some good news for small business owners. You’ve been hit especially hard during the pandemic, but more aid is available to help keep you afloat. The new American Rescue Plan (ARP) Act includes $48 billion in new small business support. This much-needed lifeline includes:
Need help understanding how the new relief bill might benefit you? Our Block Advisors small business certified tax pros can help you make sense of it all.
PPP extended loan period and additional funding
The PPP Extension Act of 2021 gives small business owners more time to apply for these valuable loans. You now have until May 31, 2021, to submit your application and take advantage of the additional $7.25 billion in funding from the ARP Act. Note that some lenders may have deadlines prior to May 31.
PPP second draw loans. If you previously received a PPP loan, you have a second chance at funding with the renewed program. New loans are available if:
PPP first draw loans. If you have not previously received PPP funding, you are also eligible to apply. Loans of up to $2 million are available for businesses with less than 500 employees*, sole proprietors, independent contractors and eligible self-employed individuals.
New Economic Injury Disaster Loan program measures for those hardest hit
The Economic Injury Disaster Loan Program (EIDL) was intended to get money quickly to small business owners to alleviate cash flow issues caused by the pandemic. The ARP Act will ensure money is quickly distributed to the hardest-hit by:
How you can secure new funding
Loan applications can be submitted with banks and approved financial lenders. Even if you applied before and were denied, this new bill includes new funding so try again. This new round of funding also has set-asides for community lenders to assist hard-to-reach communities and unbanked or underbanked small businesses.
How will all this impact your 2020 taxes?
We know this information is complicated, but you don’t have to go it alone. Block Advisors small business certified tax pros are here to help.
Our small business tax professional certification is awarded by Block Advisors, a part of H&R Block, based upon successful completion of proprietary training. Our Block Advisors small business services are available at participating Block Advisors and H&R Block offices nationwide.
PPP loan applications can be submitted with banks and approved financial lenders. Other SBA loan applications can be submitted directly to the SBA. Check out SBA.gov for more information. Even if you applied before and were denied, this new bill includes new funding so try again.
Yes, receiving aid may impact your 2020 tax filing. For example, money received from your forgivable PPP loan will not be included in your gross income at the federal level, but you’ll want to check with your state to determine if the forgiven loan is taxable on your state return. In addition, recent legislation provides for the ability to deduct business expenses paid with forgiven PPP loans and other COVID-related loans and grants.
To fully understand your eligibility for tax credits and deductions, we recommend speaking with one of our Block Advisor Small Business Certified Tax Pros to help you make sense of it all.
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