President Biden signed the $1.9 trillion American Rescue Plan into law Thursday. The massive stimulus package was designed to alleviate the financial struggles of millions of Americans during the COVID-19 pandemic, and also to fund a nationwide vaccination plan.

The package includes $1 trillion in direct aid to citizens (many Americans will receive a $1,400 check) and $415 billion for COVID-19 vaccine programs and testing. It also earmarks $440 billion in aid to U.S. businesses.

Here are a few aspects of the landmark piece of legislation that could potentially buoy your small business:

$15 billion to the Economic Injury Disaster Loan Program

This is targeted money for the Small Business Association’s economic injury disaster loans (EIDL) emergency advance grants, a fund that was established by last year’s CARES Act that had run dry. Out of the new funding, $5 billion will be distributed in a new round of $5,000 grants to the smallest (those with fewer than 10 employees) and most severely impacted small businesses.

The Paycheck Protection Program

The Paycheck Protection Program (PPP), which was established in the CARES Act, is getting another $7.25 billion in funds, and is currently taking applications for second-round loans (more nonprofit organizations are now eligible).

Extension of the Employee Retention Tax Credit

The CARES Act created a refundable payroll tax credit for businesses and nonprofits that retain their employees during the COVID-19 crisis, and the American Rescue Plan extends that tax credit through December 31, 2021. The bill also expands eligibility to startups that began after February 15, 2020.

Economic Health

The economic aid to individuals and families packed into the bill—which includes the one-time checks, $3,000 tax credits for children ages 6 to 17 and $3,600 for children under age 6, and more than $20 billion going to emergency rental assistance—will also likely impact small retailers positively. The comprehensive assistance will allow millions to catch up on financial obligations and funnel more money into the economy.

Read the Small Business Association’s sections of the stimulus plan here.

(Illustration: Getty Images)

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