American Rescue Plan Act of 2021 for Businesses

Updated as of 8:00 am on March 19, 2021

Below is a summary of the American Rescue Plan Act of 2021 (H.R. 1319) for businesses. The bill was signed into law on 3/11/2021.

Grants for restaurants and other food businesses (Restaurant Revitalization Grants)
Grants will be available in the near future for restaurants and other food and beverage businesses that are impacted by current economic conditions. These grants will be processed through the Small Business Administration (SBA).

Extension and expansion of the Families First Coronavirus Response Act (FFCRA) Sick/Leave Pay

Extension and adjustments to the Employee Retention Credit (ERC)

Taxation clarification on Restaurant Revitalization Grants or EIDL Advance
HR 1319 clarifies that Restaurant Revitalization Grants and the EIDL Advance are generally excluded from gross income and other tax-related calculations.

Shuttered Venue Operators Grant (SVOG)
HR 1319 includes an additional $1.25 billion for the Shuttered Venue Operators Grant (SVOG) program. It also allows eligible entities that receive a first or second draw PPP loan after December 27, 2020 to receive a grant. Previously, receiving or having open applications for both programs had been prohibited. With the passage of the new law, it is possible for venue operators to receive both a PPP loan and an SVOG, as long as the amount of the SVOG is reduced by the amount of PPP funds approved. SVOG eligibility requirements can be found through the SBA’s website.