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How Can the New Stimulus Relief Bill Protect an Illinois Business?

Posted on in DuPage County Business Law Attorney

b2ap3_thumbnail_stimulus.jpgThere is no denying that the spread of COVID-19 caused a health and economic crisis throughout the United States. Fortunately, the United States House of Representatives recently passed a $1.9 trillion COVID-19 relief package, which contains $1,400 stimulus checks for individuals (who make up to $75,00 annual gross income), unemployment benefits extension, and billions of dollars in federal aid to help small businesses and non-profit companies. President Biden is expected to sign the bill, and Democrats consider the American Rescue Plan Act of 2021 not just a bill to combat the financial downturn caused by the coronavirus pandemic but also an anti-poverty measure in general.

Financial Assistance for Business Owners

With several brands of vaccines being administered across the country and certain restrictions lifted, the economy has shown signs of rebounding. However, millions of Americans are still unemployed. The American Rescue Plan Act will provide $350 billion to cities and states and $130 billion to schools to aid in reopening them. In addition, the stimulus bill will devote billions more to a national vaccination program, expanded COVID-19 testing, food stamps, and rental assistance, to name a few. As more and more people are vaccinated, non-essential businesses that were temporarily shut down may be allowed to open their doors for customers again. This can include salons, casinos, bars, restaurants, movie theaters, concert venues, as well as other small businesses.

The Act also includes several provisions for small business owners. It allocates an additional $7.25 billion for forgivable loans in the Paycheck Protection Program (PPP). Additionally, it provides grants targeted to small businesses in those areas of the economy that have been hit the hardest by coronavirus-related shutdowns. Specifically, the bill will provide the following in financial relief funds:

  • $15 billion for Economic Injury Disaster Loan (EIDL) advance payments.
  • $25 billion for bars, restaurants, and other eligible establishments that offer food and drink.
  • $1.25 billion for shuttered venue operators.
  • $175 million to create a pilot program to increase awareness of and participation in COVID-19 relief programs for business owners, with a focus on businesses owned by economically disadvantaged individuals, women, and veterans.

The bill also allocates $15 billion in grant money to the struggling airline industry, with most of it going to eligible air carriers and a small percentage for contractors. Another $8 billion will go to airports.

Contact a DuPage County Business Law Attorney

The impact of the coronavirus pandemic has left many businesses struggling to stay afloat. If you are a business owner in Illinois, it is important to understand how the latest stimulus relief package may affect your company. A distinguished Wheaton, IL business lawyer who has a firm grasp of business law can help you understand the best strategies for making your business succeed. At Stock, Carlson & Duff LLC, each of our attorneys has 40 years of experience representing clients throughout DuPage, Kane, Cook, and Lake Counties a range of business-related legal issues. To schedule a private consultation, call our office today at 630-665-2500.


Sources:

https://www.cnbc.com/2021/03/08/1400-stimulus-checks-who-is-eligible-how-soon-they-could-arrive.html

https://www.washingtonpost.com/us-policy/2021/03/09/biden-stimulus-house-passage/

https://www.journalofaccountancy.com/news/2021/feb/house-passes-stimulus-bill-small-business-relief.html

https://www.ilga.gov/legislation/ilcs/fulltext.asp?DocName=003005000K45-45

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