Small Business-related provisions under the ARPA
What Covid Relief is still available for Small Businesses in 2021?
The two best avenues for small business Covid relief in 2021 are the (1) Second PPP Loan and (2) 2021 Employee Retention Credit for all 4 quarters of 2021.
The deadline for the second PPP loan is currently March 31, 2021 so borrowers are urged to move quickly to file an application. Some banks have already stopped accepting applications. Congress could extend the deadline.
For all quarters of 2021, employers who qualify, including PPP recipients, can claim an employee retention credit of 70% of qualified wages paid for the first $10,000 per employee per quarter. The credit is available in 2021 to employers whose (1) operations are fully or partially suspended due to a COVID-19-related shut-down order, or (2) the gross receipts of such employer for the calendar quarter are less than 80 percent of the gross receipts of such employer for the same calendar quarter in 2019.
