Jun. 06, 2021
Businesses impacted by the coronavirus (COVID-19) pandemic may still be eligible for relief. The Paycheck Protection Program (PPP) ended May 31, 2021, but existing borrowers may be eligible for loan forgiveness, click here to learn more.
Other relief resources include:
Economic Injury Disaster Loan (EIDL): In April, the U.S. Small Business Administration (SBA) increased the maximum amount small businesses and nonprofit organizations can borrow through this program. The loan limit is up to 24 months of economic injury with a maximum loan amount of $500,000. Click here for details.
Employee Retention Tax Credit (ERTC): This is a refundable credit that businesses can claim on qualified wages, including certain health insurance costs. The 2020 employee retention credit gives eligible businesses a refundable tax credit of 50 percent of up to $10,000 in qualified wages paid per employee in 2020 or a credit of up to $5,000 per employee for last year.
The American Rescue Plan Act, signed into law in March 2021, expanded the credit. More businesses may be eligible and the deadline has been extended through December 2021. Businesses that qualify can take the credit for a portion of the wages they pay to some or all their employees, up to $7,000 per employee for each quarter. The maximum credit is $28,000 for an employee for 2021. Click here for details.
To help those in the equipment and event rental industry get a better understanding of the various programs, Ogletree Deakins — a legal firm with an HR focus which partners with the American Rental Association (ARA) — recently offered a webinar to members.
“Legal Considerations Related to the Paycheck Protection Program and the American Rescue Plan Act” focused on the legal and practical considerations related to these incentives, including forgivable loans under the Paycheck Protection Program (PPP), payroll tax incentives encouraging employee retention, funding emergency sick and family leave, and subsiding the continuation of health insurance for former employees.
ARA members can view the one-hour webinar by clicking here.
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