The House passed the American Rescue Plan Act (ARPA) last Wednesday, and the Act was signed into law at the White House on Thursday March 11. The Act is intended to help the economy in its continued climb from the descent caused due to COVID-19.
How will the ARPA impact families and individuals?
The stimulus checks were probably the most popular topic of discussion as they will directly impact individuals and families who earn less than $75,000 and $150,000, respectively. Other items in the bill that will also help American households include unemployment assistance and tax credits impacting child care, COBRA and sick leave. We believe this cash injection and tax assistance will not only help millions pay bills but also increase spending, thus boosting the economy and markets.
How will the ARPA impact businesses?
Just under $50 billion of the new plan is allocated to help small businesses. $7 billion is earmarked for the Payroll Protection Program. The employee retention credit is extended through 2021 for companies experiencing revenue declines, and SBA loan forgiveness will continue for those applying for loans through September 20, 2021.
This is a massive bill with many aspects and has no shortage of provisions for individuals and businesses at all levels. Naturally, you may have questions about the bill, and how it might affect you or your business. We’d be happy to discuss your situation to develop a strategy.
Matt and Andrew