3 Ways the New COVID-19 Relief Bill Impacts Your Business

30-Second summary:

• In addition to providing a new round of stimulus payments, the American Rescue Plan Act contains a host of provisions that will offer financial relief to businesses affected by COVID-19.
• If eligible, businesses stand to benefit most from the extended Employee Retention Credit, the launch of the Restaurant Revitalization Fund and expanded Provider Relief Fund payments.
• Aprio is committed to putting your business in the best-possible position to reap the benefits of these new and extended programs. Schedule a consultation to learn more.

On March 10, 2021, Congress passed the American Rescue Plan Act (the Act) to provide additional relief to Americans amid the ongoing pandemic. Most of the public focus has been on the bill’s individual stimulus payments and extension of unemployment compensation. However, the new law also contains provisions aimed at providing financial relief for businesses, with several new or expanded programs designed for industries hit hardest by COVID-19.

While the stimulus payments to individual taxpayers are automatic, many of the programs aimed toward businesses contain eligibility and application requirements. Here are three changes passed under the Act that could positively affect your business operations.

1. Extension of the Employee Retention Credit through the end of 2021

This extension can double the benefit eligible employers receive for paying qualified wages to employees impacted by the pandemic. With the extension, the Employee Retention Credit (ERC) contains additional application and eligibility requirements you should consider. Visit Aprio’s ERC resource page to determine whether your business qualifies for the extended ERC.

2. The launch of the Restaurant Revitalization Fund

The Act also contains long-awaited relief for small restaurants impacted by the pandemic in the form of the Restaurant Revitalization Fund (RRF). The RRF is administered by the U.S. Small Business Administration (SBA) and offers $28.6 billion in grants for eligible restaurants, $5 billion of which will be set aside for those with 2019 gross receipts of $500,000 or less.

The RRF will go into effect 60 days after President Biden signs the Act into law. To learn more about the RRF, read our latest article on the legislation here. For further clarification and questions, we also encourage you to contact Aprio’s Restaurant, Franchise & Hospitality team to schedule a consultation.

3. Additional Provider Relief Fund payments for rural healthcare providers and suppliers

The Act includes an additional $8.5 billion in Provider Relief Fund (PRF) payments for rural healthcare providers and suppliers to cover extra expenses and lost revenues specifically attributable to the pandemic. Providers and suppliers seeking funds must apply to determine their eligibility, which includes providing documentation of additional expenses and lost revenues due to COVID-19. Aprio’s Provider Relief Consulting team can assist your healthcare organization in determining your eligibility and applying for PRF funding.

The news isn’t all taxpayer-favorable, however…

The Act includes a repeal of the interest allocation rules for U.S. multinational companies, which could impact taxpayers with offshore activities. The prior provision permitted taxpayers with foreign activities to allocate business interest on a worldwide basis, allowing companies to “free up” certain foreign tax credits. The repeal of this election may represent a significant tax hike for certain corporations. For questions on how this may impact your business, please contact Aprio’s International Services team.

The bottom line

The passage of the Act signifies a light at the end of the tunnel for many businesses that have struggled under the weight of the COVID-19 pandemic. At Aprio, we’re committed to putting your business in the best-possible position to reap the benefits of these new and extended programs.

Related resources

• Aprio’s ERC Resource Page
• The American Rescue Plan Act of 2021 Passes, Providing Relief for Restaurants
• Aprio’s Provider Relief Fund Consulting Page