President Biden came into office on January 21st, promising some drastic changes that are designed to help America succeed. Since Biden came into office, he’s made it clear that his top priority is helping Americans get back on their feet after the COVID-19 pandemic. Part of that plan includes passing a $1.9 trillion relief program. So, what does that mean for you and your business?
Is There a Third Stimulus Check?
The hope is that this new relief package will give another $1400 stimulus payment to American individuals, which could be a huge boost to the economy. The last two stimulus checks increased consumer spending on all levels, and it’s expected to do the same this time around—which could significantly benefit small businesses.
With this budget still in the process of being passed, it’s unknown what the terms and conditions will be or if every American will be getting a check.
Aid for Small Businesses and the PPP Program
The new relief package includes $15 billion to create a brand-new grant program that exists separate from the Paycheck Protection Program. The last two stimulus bills that were passed allowed for businesses to apply for the PPP Program. If you haven’t applied for it since it was originally released last summer, you might be eligible for a second grant as of December 2020.
However, it’s unknown what the tax risks or benefits are to taking the PPP Grants. The loans were considered forgivable as long as 60% of the loan went towards paychecks for workers. Businesses that used the loan for other expenses might have to pay it back.
It’s unknown what kind of aid the newest pandemic relief plan will pass at this time as things are still being heavily negotiated.
It might be passed with the current relief package, or it might not be. Regardless, President Biden has made it perfectly clear where he stands on the current federal minimum wage. His aim is to raise it gradually to $15 an hour to give businesses time to adjust.
A Light at the End of the Tunnel
The $1.9 trillion relief package also includes around $20 billion in support for vaccines and testing. The hope is that launching a national vaccination program will help get more Americans vaccinated as quickly as possible so we can get back to living our lives.
If you need assistance with applying for grants or unemployment, reach out to the team of attorneys at Hoover Slovacek today!