American Rescue Plan Offers New Federal Help For Small Businesses; Flagstaff seminar scheduled for Thursday | Local
SUN DAILY STAFF
Local restaurants that have been hit hard by the COVID crisis have new opportunities for federal assistance. The Greater Flagstaff Chamber of Commerce is hosting a webinar with the Small Business Administration on Thursday April 29 from 10:30 am to 11:15 am.
As part of the US bailout, the Small Business Administration is offering $ 28.6 billion to help restaurants and other eligible businesses keep their doors open across the country.
The Restaurant Revitalization Fund will provide restaurants with funding equal to their loss of revenue from the pandemic of up to $ 10 million per business and no more than $ 5 million per physical location.
Recipients are not required to repay funding as long as funds are used for eligible uses by March 11, 2023.
The new law also expanded the employee retention tax credit.
The previous credit was 50% on $ 10,000 of eligible wages for the entire year (or a maximum of $ 5,000 per employee). The new credit is 70% on $ 10,000 of salary per quarter (or a maximum of $ 14,000 per employee until June 30).
Credit expires January 1, 2022.
Prior to 2021, the employee retention tax credit only applied to an employer that experienced a gross revenue decline of more than 50% in one quarter compared to the same quarter in 2019. For 2021, eligibility is now expanded to include employers who have experienced a drop of more than 20%.