Help for Small Businesses

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Help for Small Businesses

The American Rescue Plan, a new law recently signed by President Biden, includes significant new funding to help your small business get through this difficult time. Below please find some tips to get the help you need.

The federal legislation provides new funding through grants to states to assist small businesses in responding to and recovering from the economic effects of the COVID–19 pandemic. The legislation is focused on businesses owned by socially and economically disadvantaged individuals and individuals of color. For more information, please visit the CT Department of Economic and Community Development.

The new law increases funding for the Paycheck Protection Program (PPP) and provides new opportunities for qualifying nonprofit businesses to participate. The PPP offers loans backed by the federal government to encourage small businesses to retain employees during the economic downturn caused by the pandemic. For more information, please visit the U.S. Small Business Administration.

The federal legislation includes new funding for $5,000 Economic Injury Disaster Loans (EIDL) to businesses with 10 or fewer employees that have been disproportionately affected by the pandemic. For more information, please visit the COVID-19 Economic Injury Disaster Loan.

The new federal legislation provides more than $28 billion for grants to restaurants with significant losses caused by the pandemic. To learn more about the eligibility criteria, please see this National Restaurant Association Policy Brief. Information about how to apply for grants will be made available at COVID-19 relief options.

The new federal law provides tax credits to employers operating in trades that have been temporarily shut down or limited by the pandemic with a credit for wages paid through Jan. 1, 2022.  For more information, please view the Guidance on the Employee Retention Credit.

The federal legislation provides additional funds, grants of up to $10 million, to small businesses disproportionately affected by the pandemic, with a focus on businesses with 50 or fewer employees. For more information, please visit the Shuttered Venue Operators Grant.

The new law extends tax credits available to employers for qualified paid sick leave taken by employees for pandemic-related reasons through 2022. For more information, please view the IRS press release.