Small business assistance available from the American Rescue Plan Act
-On March 11, after weeks of debate, President Biden signed the American Rescue Plan Act of 2021 into law, which among other assistance, provides significant benefits to small businesses and qualifying nonprofits. The business attorneys from Toews Law Group, Inc. have summarized what these benefits mean to small businesses on the California Central Coast.
In addition to providing assistance to state and local governments, and stimulus checks to individuals and families, the Rescue Plan includes an additional $7.25 billion to the Paycheck Protection Program (PPP) and increases in the number of nonprofits that qualify for the program. The most notable provision for small businesses on the Central Coast is the inclusion of $15 billion to provide targeted Economic Injury Disaster Loans (EIDL) funds for qualifying businesses located in low-income communities. To qualify for the new EIDL funds, businesses:
- Must operate in a low-income community
- Have less than 300 employees
- Have lost more than 30-percent of their gross receipts due to COVID-19
A number of small businesses on the Central Coast may be surprised to find they qualify for the new round of EIDL funds because they operate in a low-income community. In the city of San Luis Obispo, for example, businesses located near or around Cal Poly are operating in a low income community. In north San Luis Obispo County, those businesses located in certain areas of Morro Bay, Paso Robles, and certain rural areas surrounding Paso Robles and Atascadero, may qualify for the new targeted EIDL funds. In South San Luis Obispo County, businesses located in Grover Beach fall within the low-income community definition.
Visit the Small Business Administration (SBA) website for information about applying for a PPP loan. The deadline to apply, according to the SBA, is March 31. The San Luis Obispo business attorneys recommend that business managers or owners consult the SBA map to determine if your business is in a low income community. If you’d like to discuss the EIDL funds, or have further question regarding your business, call the business law attorneys at Toews Law Group today.
This information has been prepared by Toews Law Group, Inc for informational purposes only and is not legal advice. The transmission of this information is not intended to create an attorney-client relationship. Contacting us does not create an attorney-client relationship. Consult an attorney for advice regarding your individual situation. Contact information: Toews Law Group, Inc.,1212 Marsh Street, Suite 3, San Luis Obispo, CA 93401, (805) 781-3645