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Biden's American Rescue Plan:
How does this affect you. Here are a few insights into what to expect in the coming weeks:
- More PPP funding of $7.5 Billion increasing the PPP program level from $806.4 billion to $813.7 billion.
- Employee retention credit will now be allowed in Q3 and Q4, bringing the total credit per employee to $28k.
- An expansion of the child tax credit to give families up to $3,600 per child over a year
Various non-profits listed in Section 501(c) will now be allowed to take PPP.
- Additional Targeted EIDL Advance of $15B for small businesses only received a portion of the expected $10k advance last year for hardest hit small businesses.
- Other eligible entities are now allowed to take PPP second round.
- $25 billion in new funding available for restaurants and other food and drinking establishments
- Additional $1.25 in SBA Shuttered Venue Operators Grant Program.
- Extended credit dates for the FFCRA
- Payments of $1,400 to most individuals, along with the same amount for each dependent.
- Checks start to phase out at $75,000 in income and go to zero for individuals making $100,000
- A $400 per week unemployment supplement through August 29, 2021.
- A $15 per hour federal minimum wage, which the Senate parliamentarian will not allow in the reconciliation bill on the other side of the Capitol
Now don't get too overwhelmed. There is a lot to digest, and navigating the right items to focus on will be essential.
Book a time here, and let's chat.
Miguel A. Palma, CPA, PFS, CGMA
Founder of Palma Financial Services, Inc.
Palma Financial Services, Inc. ("PFS")has helped small business owners minimize income taxes and build wealth since 1998.
PFS has achieved positive results for its clients, but our top clients' successes are not typical. Because past performance is not a predictor of future success, you may have more or less success depending on many factors, including your background, experience, work ethic, client base, and market forces. Additionally, at times we may discuss the law or new and pending legislation. Please know our understanding of it is continuously changing. You cannot and should not rely upon these communications for legal, financial, or accounting advice. For the latest updates, set up a time here.
Note: This is not currently law yet and may be subject to change.