This week’s edition of the small business news round-up is all about Biden’s American Rescue Plan, what is in it for your small business? Find out here…
Let’s begin with a statement from the SBA on the American rescue plan small business …
Upon President Biden signing the American Rescue Plan Act of 2021 into law, the U.S. Small Business Administration’s Senior Advisor Michael Roth stated:
“The American Rescue Plan Act enables the SBA to continue to lift up the cornerstones of our communities; the mom-and-pop businesses and nonprofits that provide essential services for our everyday lives, hire from within neighborhoods, and more. Our nation’s more than 30 million small businesses are the economic engine of this country and, in alignment with the Biden-Harris Administration’s focus on equitable treatment, the SBA will work tirelessly to ensure eligible borrowers will get access to this critical economic relief”
… and the US Chamber…
One of the most significant recent developments in the American Rescue Plan is the creation of the Restaurant Revitalization Fund (RRF). This new $28.6 billion grant program will specifically target hard-hit restaurants and bars, with restaurants able to apply for grants based on lost gross revenue between 2019 and 2020. The maximum grant size will be $5 million for restaurants and $10 million for restaurant groups. Those not eligible for the grants include any state- or local-government-owned entities or owners who own more than 20 restaurants. However, most franchise operators will be eligible.
Thanks to the stimulus programs, there are now five ways small can save big on their taxes in 2021 … and even get money back…
The signing of the American Rescue Act this week means that more than $5tn has been spent on stimulus programs in the US to fight the economic impact of the Covid pandemic. A significant amount of this money has been earmarked towards funding small businesses, such as the paycheck protection program and the economic injury disaster loan program. However, all of the stimulus programs contained generous tax incentives that can not only save business owners a significant amount on their taxes in 2021 but also provide additional funding. Here are five that every small business owner should be considering.
Speaking of the stimulus package, what is really in it for small businesses? …
The $1.9 trillion American Rescue Plan Act that President Joe Biden signed into law on Thursday contains a number of provisions intended to help small businesses, especially restaurants. It authorizes another $7.25 billion for the Paycheck Protection Program, which offers forgivable loans to small businesses and other organizations hurt by the pandemic. The loans will only be forgiven, however, if at least 60% of the money is used to support payroll expenses and the remainder goes to mortgage interest, rent, utilities, personal protective equipment or certain other business expenses.
More on what Biden’s relief plan mean for your small business…
After weeks of debate, consternation and bipartisan compromise, the latest COVID-19 relief plan has finally passed through both chambers of Congress and is now on track to finally reach President Biden’s desk in the coming days. The $1.9 trillion packages has been months in the making, and many small businesses who have sought funding from Credibly and other small business lenders are gradually running out of capital to weather what remains of the global health crisis.
The new package, titled the American Rescue Plan Act of 2021, is coming just as the benefits of the previous package, passed late in December of last year, are set to expire. In that time, small business owners have eagerly awaited the new stimulus package, with an MSNBC survey revealing that 63% of business owners approve of the measures in the bill as their confidence for what the future may hold continues to diminish.
Small business owners report new software adopted last year in response to COVID-19 increased productivity (47%), improved engagement with customers (45%) and increased sales (45%), according to data gathered by SCORE and Software Advice. Nearly half of small business owners (45%) surveyed expect to increase their 2021 investment in technology.
A sad COVID-19 tale…
For a lot of Americans, getting back to normal is not possible, since the pandemic robbed them of loved ones and livelihoods. We know from data that this pandemic has hurt some portions of society more than others. It’s struck low-wage workers and small businesses more than the rich and corporate America, and trillions in relief spending by the federal government hasn’t filled every gap. One person who the pandemic hurt is Heather Stouffer, who closed her small business manufacturing frozen foods this month. I talked to Heather (full disclosure: She lives in my neighborhood and is a friend) about her experience and the difficult decision to close Mom Made Foods, the business she’d built over more than a decade.
Hope is almost here for the restaurant industry…
The Small Business Administration will likely open up Restaurant Revitalization Fund grant applications within ‘weeks, not months’ (restaurant hospitality)
The Small Business Administration will likely open up the Restaurant Revitalization Fund grant applications “within weeks, not months,” of President Biden signing the stimulus package into law, Rep. Earl Blumenauer (D- Or.) said in a press conference with the Independent Restaurant Coalition Wednesday morning. The U.S. House of Representatives passed the $1.9 trillion American Rescue Plan Wednesday and Biden is expected to sign the bill by Friday afternoon. Blumenauer and Senate Majority Leader Chuck Schumer (D- N.Y.) held the press conference with members of the Independent Restaurant Coalition and high-profile restaurant owners Wednesday morning to discuss how the Restaurant Revitalization Fund will impact small restaurants and bars around the country.
40% of Small Business Owners Are Having Trouble Filling Job Openings. Here’s Why. (Foundation for Economic Education)
A whopping 40 percent of small business owners were unable to fill job openings last month—a seven-point increase from January. This finding comes from a new report by the NFIB (a small business advocacy group). The inability to fill jobs comes in spite of the fact that 25 percent of small businesses increased compensation during the same time period, the report finds.
Employers are feeling the crunch, with 24 percent claiming labor quality as their top business problem. Another 51 percent reported few or no qualified applicants for the positions they sought to fill, a statistic made all the more troubling as economists predict millions of new jobs by the end of the year.
Google plans to scrap third-party cookies by 2022..
Google has announced plans to stop using tracking cookies on its Chrome browser by 2022, replacing them with a group profiling system in a move the company says will plot “a course towards a more privacy-friendly web.”
The change is significant. Chrome commands some two-thirds of the web browser market. Third-party tracking cookies, meanwhile, underpin much of the targeted advertising industry. And, while Mozilla’s Firefox and Apple’s Safari have already stopped supporting third-party cookies, Google is the first firm to produce replacement advertising support.