American Rescue Plan Act of 2021
Another change to the tax credit is the option receive half of the value on this credit on a monthly basis (starting in July of 2021). In the past, residents had to wait until they filed their taxes to receive the Child Tax credit.
The American Rescue Plan was signed into law by President Biden on March 11, 2021. This latest federal recovery bill has a wide range of programs designed to provide economic relief to residents and businesses impacted by the coronavirus pandemic. This page provides a high-level overview of a few key facets of the bill. As additional guidance is made available, more information will be provided.
Economic Impact Payments
The third round of economic impact payments was included in the American Recovery Plan (ARP). Eligible residents can check the status of their 2021 impact payment by visiting the IRS 'Get My Payment' tool. If you did not receive one of your economic impact payments during 2020, you may be eligible to claim the Recovery Rebate Credit when you file your 2020 taxes.
Child Tax Credit for 2021
The American Rescue Plan Act of 2021 expands the Child Tax Credit for certain households. The US Treasury is currently building a website to help residents calculate how much they can expect to receive under this expansion. Another change to the tax credit is the option to receive half of the value of this credit on a monthly basis (starting in July of 2021). In the past, residents had to wait until they filed their taxes to receive the Child Tax credit. More information on the expanded Child Tax Credit will be available soon.
Pandemic Unemployment Assistance
ARP also reactivates the Pandemic Unemployment Assistance program, which will provide an additional $300 of Federal pandemic unemployment compensation per week from March 14, 2021, through September 6, 2021. You can learn more about the Pandemic Unemployment Assistance program here. ARP also extends Pandemic Unemployment Assistance extends compensation for those that exhaust state benefits from 24 weeks to 53 weeks. Factoring in the extensions from the CARES Act and Consolidated Appropriations Act, some recipients can receive up to 79 weeks of total benefit.
Paycheck Protection Program
ARP injects another $7.25 billion in funding to the Paycheck Protection Program. The Paycheck Protection Program was expanded to include non-profits last year and that expansion is still active. Businesses and non-profits interested in utilizing this program for a first or second draw are encouraged to do so soon; the Paycheck Protection Program will end on March 31, 2021, without Congressional action. Applications need to be completed and submitted to your lender no later than March 22, 2021.
- Paycheck Protection Program page
- SBA Paycheck Protection Program page
- Find a Paycheck Protection Program lender
Economic Injury Disaster Loans
Economic Injury Disaster Loans have received an additional $15 billion in funding, with $5 billion in targeted funds being reserved for the hardest-hit businesses. The SBA will be reaching out to EIDL applicants that already received a partial EIDL advance in the amount of $1,000 - $9,000. The SBA will be utilizing email to reach applicants. All official communications concerning this program will be sent from an official government email ending in "@sba.gov".
Restaurant Revitalization Grants
A new program called the Restaurant Revitalization Fund is included in the American Rescue Plan. The program will be administered by the SBA and is expected to open within the coming weeks. Click here to visit the Restaurant Revitalization Grant page.
Shuttered Venue Operator Grants
Originally part of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, which was signed into law on December 27, 2020, the program is currently slated to open in early April and received an additional two billion in funding from the American Rescue Plan. The program was crafted for live venue operators, theatrical producers, live performing arts organizations, museum operators, and motion picture theater operators.