The Biden American Rescue Plan For Small Businesses Extended to May 31, 2021


Published: March 29, 2021

Courtesy of The good and bad in Biden’s giant

finance.yahoo.com

The Senate voted to extend the Biden American Rescue Plan by a margin of 92-7 for the PPP extension A.C.T. of 2021. This extension is unto May 31, 2021. Thus, giving small businesses additional time to apply for these funds through S.B.A. would help them through these pearless times of the pandemic and the closing down of non-essential industries.

President Biden has signaled that he would sign the bill once it hits his desk. Fox News states these programs have saved some 50 million jobs, according to S.B.A. This program has granted some 2.4 million in loans worth some $165 billion since the program has begun. This is about half of the $284 billion projected and earmarked for the program.

The program has currently delivered some $525 billion in forgivable loans to some 5.2 million businesses. Although a novel program for small businesses that have suffered during this pandemic, some experts worry even this time is not long enough. The rules are 60% of the money obtained in this program must be paid on payrolls to receive forgiveness of the loan. The interest rate to get these loans is 1%.

Why is the Super Rich Getting These Funds?

Along with his son-in-law Jared Kushner companies, the Trump organization has profited with dozens of Paycheck Protection Program money to the tune of some $3.65 million; why is that? NBC. News has further found that companies that pay rent to these two companies have received millions of dollars from the program that should go to those who are less fortunate and have suffered during the pandemic. NBC also reported that 15 of those properties self-reported only kept one employee after receiving the P.P.P. money or did not keep any employee, or said how many they did retain.

Amongst the loans was one for  $2,164,543 paid to the Triomphe Restaurant Corp., located in the Trump International Hotel & Tower in New York City. The business reported the cash was not used to keep any jobs. The restaurant then later closed. Why is there so much abuse for funds supposed to go to those businesses to keep their employees working?

Moreso, NBC News reported that two tenants at Trump Towers in New York received more than $100,000 and only kept three jobs. While his son-in-law, who owns the infamous 666 on 5th Ave in New York, has four tenants who total some excess of  $200,000, and they help six jobs among them. NBC has also reported that S.B.A. data has shown more than 100 loans given to organizations with no business names listed or stated no name available. And, yet you find many needy business owners can not get a dime from S.B.A. for the exact cause.

NBC is one of 11 news organizations that sued S.B.A. for this data and found some 300 companies received more than $10 million in loan proceeds even though this type of money was to go to the restaurant, hospitality, or hotel industries. Kyle Herrig,  who is the president of the watchdog group Accountable.US, was said to say in a statement to NBC that this court-ordered announcement of this vital data, while the Trump administration was on its way out the door, this is a scandalous negligence of duty and blatant mishandling of a program that millions of employees and small businesses looked-for to get through this pandemic. Thus, it is a shameful act of greed and abuse of power for an elite group of people whom others would be prosecuted.

The Washington Post has declared that half of the P.P.P. money went to only 5% of the recipients, while 600 companies that were primarily large organizations that included dozens of national chains received the maximum allocation that was allowed was $10 million per organization. Oh, if that money could have gone to those minority organizations, and those that meant to serve or that needed it and turned down, could have received these funds, where would the nation be like then?

April to Begin Restaurant Revitalization Fund Rollout

The Small Business Administration is targeting early April 2021 to start rolling out help to American restaurants, and hospitality industries called The Restaurant Revitalization Fund (R.R.F.). This comment was leaked by a senior Small Business official at a Senate Small Business Committee meeting while testifying. The American Rescue Plan Act, P.L. 117-2, formed the R.R.F. to offer restaurants with grants which would equal to their pandemic-associated income loss, up to $10 million per person, or $5 million per physical location.

Restaurants and bars have been amongst the most challenging hit businesses during the pandemic, and representatives of the Senate Small Business Committee pressed for responses on how quickly this package could be launched. Patrick Kelley, an associate administrator of S.B.A., Capital Access, informed a committee members that the S.B.A. is working on creating a technology solution to implement hundreds of thousands of grants to restaurants, bars, and other qualified suppliers of food drink. He stated that S.B.A. focused like a laser on beginning this program as quickly as possible

Kelley said The S.B.A. seeks to work with the White House Office of Management and Budget (O.M.B.) to construct a program mounted to influence associates such as point-of-sale vendors to provide relevant sales data. The new program could use that data to help computerize parts of the application and grant computation process. Kelly said by designing off of the point-of-sale merchants and posting our private web application, he believes they could reach the most significant market sector fastest.

Kelly said, preferably, the S.B.A. would be in a position in the next seven to 10 days to commence publishing R.R.F. information, such as the guidance and the required certification, relevant to prospective candidates. The program would then proceed to a test phase, in which the program would start receiving applications based on prioritizing instituted in the American Rescue Plan Act. This would set aside some $5 billion for the smallest applicants, which is $500,000 or less in 2019 gross earnings and necessitates that during the first 21 days of the grants, the S.B.A. will rank applications from restaurants owned and operated and controlled by females, veterans, or socially and economically deprived persons.

The grants used to pay the following expenses:

  • Payroll
  • Mortgages
  • Rent
  • Utilities
  • Maintenance expenses for construction of outdoor seating and accommodations for its patrons
  • Suppliers
  • Food and beverage expenses
  • Operational expenses
  • Paid sick leave
  • And any other expense S.B.A. deems is necessary to maintain an eligible status

Conclusion

As we move toward the last week in the month of March 2021, we find ourselves with a new administration that is favorable to the middle class. President Biden has stated several times, America is founded on the middle class. The Biden American Rescue Plan is a welcome life rope for those business organizations that the pandemic has hit the hardest.

The Restaurant Revitalization Fund (R.R.F.) is another program that restauranteurs and the hospitality sectors will benefit from and could put them in a more favorable economic force in the future. The bill focused on the issues that have hampered this industry for over a year.

And remember, if you apply and have been turned down, press this link to go to our website to learn how you can obtain alternative financing for your enterprise.
Donald E. Mitchell, D.B.A., M.B.A., B.B.A.
Small Business Consultant