Refundable Tax Credits

The American Rescue Plan Act of 2021 (ARP) allows small and midsize employers (500 employees or less), and certain governmental employers, to claim refundable tax credits that reimburse them for the cost of providing paid sick and family leave to their employees due to COVID-19, including leave taken by employees to receive or recover from COVID-19 vaccinations. The ARP tax credits are available to eligible employers that pay sick and family leave for leave from April 1, 2021, through September 30, 2021. To claim the credit, eligible employers must report their total paid sick and family leave wages (plus the eligible health plan expenses and collectively bargained contributions and the eligible employer's share of Social Security and Medicare taxes on the paid leave wages) for each quarter on their federal employment tax return, usually Form 941, Employer's Quarterly Federal Tax Return.

Self-employed individuals may claim comparable tax credits on their individual Form 1040, U.S. Individual Income Tax Return.

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PPP Loan Forgiveness

A borrower can apply for forgiveness once all loan proceeds for which the borrower is requesting forgiveness have been used. Borrowers can apply for forgiveness any time up to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred, and borrowers will begin making loan payments to their PPP lender.

To learn more, click here for FAQ’s on PPP Loan Forgiveness.

Forgiveness forms and instructions

Economic Injury Disaster Loan (EIDL)

On Friday, September 10, 2021, the Administrator of the U.S. Small Business Administration announced major enhancements to the COVID EIDL program to better support small businesses impacted by the pandemic. Key changes include the following:

  • Increasing the COVID EIDL Cap. The SBA will lift the COVID EIDL cap from $500,000 to $2 million. Loan funds can be used for any normal operating expenses and working capital, including payroll, purchasing equipment, and paying debt.

  • Implementation of a Deferred Payment Period. The SBA will ensure small business owners will not have to begin COVID EIDL repayment until two years after loan origination so that they can get through the pandemic without having to worry about making ends meet.

  • Establishment of a 30-Day Exclusivity Window. To ensure Main Street businesses have additional time to access these funds, the SBA will implement a 30-day exclusivity window of approving and disbursing funds for loans of $500,000 or less. Approval and disbursement of loans over $500,000 will begin after the 30-day period.

  • Expansion of Eligible Use of Funds. COVID EIDL funds will now be eligible to prepay commercial debt and make payments on federal business debt.

  • Simplification of affiliation requirements. To ease the COVID EIDL application process for small businesses, the SBA has established more simplified affiliation requirements to model those of the Restaurant Revitalization Fund.

More than $150 billion in COVID EIDL funding is still available through the end of the year. Plus, eligible businesses in low-income areas can apply for up to $15,000 in grant funding through the COVID EIDL Targeted Advance and Supplemental Advance programs. Interested businesses can apply for all three programs at once through one streamlined application. Visit www.sba.gov/eidl for more information about all COVID EIDL programs.

Shuttered venue operators grant (SVOG)- No longer available

As of August 20, 2021, SVOG is no longer accepting new applications. The SVOG portal remains open to all active applicants and awardees.

For technical assistance such as a password reset, browser suggestions, or how to use the multi-factor authentication with an app and the QR code, applicants can call 1-800-659-2955 or, for the deaf and hard-of-hearing 1-800-877-8339 and follow the prompts to SVOG assistance. The call center is now open 24/7.

Restaurant Revitalization Fund - No Longer Available

The Restaurant Revitalization Fund (RRF) program will provide restaurants with funding equal to their pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023.

Update (as of 9/2/21): Applications are now closed for the Restaurant Revitalization Fund (RRF).

Individuals and businesses who have received funding through the RRF may use these funds for the following:

  • Business payroll costs (including sick leave)

  • Payments on any business mortgage obligation

  • Business rent payments (this does not include prepayment of rent)

  • Business debt service, both principal and interest (this does not include any prepayment of principal or interest)

  • Business utility payments

  • Business maintenance expenses

  • Construction of outdoor seating

  • Business supplies (including protective equipment and cleaning materials)

  • Business food and beverage expenses (including raw materials)

  • Covered supplier costs

  • Business operating expenses

Sign up to receive email alerts from SBA as additional information about the Restaurant Revitalization Fund becomes available.

For more information, visit sba.gov/restaurants. 

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Funded in part through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, conclusions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA. All MCBL events and services are provided on a nondiscriminatory basis.