Posted 1 month ago - by

Paycheck Protection Program Runs Out for Most Businesses – What Programs Are Still Available?

The Small Business Administration (SBA) announced on May 4th that the Paycheck Protection Program (PPP) has run out of money for most businesses. The PPP was originally expected to end on May 31st but after more than a year of operation, the program has reached the limit.

The PPP was created last year at the height of the pandemic to help small businesses recover lost revenue if they continued to keep employees on the payroll through the pandemic. The first round of funds was depleted in just two weeks in April of 2020.

More funds were then added back into the program and approved 7.6 billion in loans worth more than $687 billion between April & August of 2020. Then in January, the Consolidated Appropriations Act of 2021 added an additional $284 billion in funding back into the program. That was then followed by the American Rescue Plan Act of 2021 which then added another $7.25 billion to the PPP.

The remainder of the funds will only be distributed to those applications already in the pipeline and to businesses that are run by women, minorities, and people from underserved communities.

However, other programs are still available through the Small Business Administration to help businesses struggling in a similar way that the PPP did. The Restaurant Revitalization Fund has $28.6 billion in funding for businesses that are in the food and drink industry. The SBA began taking applications for this program on May 3, 2021.

Similarly, the SBA has reopened applications for the Shuttered Venue Operators Grant Program in April of 2021. This program allocated $16 billion for small theatres, live venues, museums, and certain other business types that were forced to close during the pandemic.

Certain businesses were also eligible to receive both the PPP and a grant through the Shuttered Venue Operators Grant Program if certain conditions were met. The SBA clarified that the amount of any subsequently approved grant through the program would be reduced by the amount of the first or second draw a business received through the PPP. However, it won’t be reduced by the PPP amount if the business received the loan in 2020.

The Employee Retention Credit (ERC) also received some extensions and amendments through ARPA back in March and is now available to more businesses than when it was originally introduced. It also includes retroactive changes that allow eligible businesses to receive tax credits today for 2020.

The ERC has also been extended through the end of 2021 for businesses that were either forced to shut down in 2021 or whose revenue is still significantly below 2019 levels on a quarter over quarter basis.  If your company’s revenue for 2021 is less than 80% of the equivalent quarter in 2019, you may qualify for a significant credit.

Is there anything Payroll Systems can help you with as you accommodate rapid legislation changes? Reach out and talk to us about the easy-to-scale solutions you need for your business.

Related Posts

A Comprehensive Guide to HR Compliance Laws You Should Know

Did you know that the US Department of Labor (DOL) administers over 180 federal labor laws These laws cover workplace activities for about 150 million workers in 10 million workplaces It is each...

Read more...

New Employee Onboarding Checklist for the Construction Industry

The onboarding process is the critical first step in getting a new employee situated and ready to work However, in industries much like construction, employees don’t often start their first day at...

Read more...

New Bill Signed by Nevada Governor Now Allows for Cannabis Lounges

The State of Nevada voted in favor of recreational marijuana back in 2016 Since then, there has been a push for allowing spaces in which tourists and residents could legally consume marijuana outside...

Read more...

9 Important Must-Do’s for the New Business Owner in California

So, you have just started a new business, or you been in business while and are now ready to hire your first employee – how exciting! With a new business comes many responsibilities that owners...

Read more...

Los Angeles County Launches New Commuter Tax Benefit for 2021

More and more offices that were fully or partially shut down in 2020 are opening again This is clear If your employees are starting back on their commute for the first time in a year, perhaps a new...

Read more...

Why Talent Pool Management is Important and 5 Ways to Get Started

Every organization has its own unique way of hiring new talent and with competition rising, many have started to look for ways to optimize and expedite their talent acquisition processes One way to...

Read more...

Leave a Reply

Your email address will not be published. Required fields are marked *

This article provides general information and shouldn’t be construed as legal or HR advice. Since employment laws may change over time and can vary by location and industry, please consult a lawyer or HR expert for advice specific to your business. You can also contact Payroll Systems to inquire about our HR support services.