This article was updated on March 11, 2021.
It will continue to be updated with any changes to Biden’s American Rescue Plan.
On March 10, the House of Representatives approved Biden’s $1.9 Trillion Stimulus. On March 11, Biden signed it into law. But what does this new package include?
- Small business aid
- A new round of stimulus checks
- A boost to the federal unemployment benefits
- Increased child tax credit
- Vaccine distribution, and testing and contact-tracing efforts
- Rental assistance
- Child care
- Aid to schools and universities
Let’s go through all the different parts of the package.
Help for small businesses: more paycheck protection
The president’s goal is to help smaller businesses that weren’t able to access or receive the PPP during the first and second rounds.
The American Rescue Plan includes grants for businesses affected by COVID and financing programs aimed at small businesses.
Payment Protection Program (PPP) loans ($7.25 billion)
Meant to help small businesses that have been affected by the pandemic. The program is still set to expire on March 31, 2021 (although there could be a potential extension to June).
State assistance for small business economies ($10 billion)
Meant to help small business economies recover. It is meant to help the State Small Business Credit Initiative offer low-interest loans and other investments.
Economic Injury Disaster Loan (EIDL) grant program ($15 billion)
Grants for small businesses in underserved areas, especially minority-owned.
Restaurant relief (nearly $29 billion)
Grant program that offers special relief to restaurants.
Shuttered Venue Operators Grants program ($15 billion)
Grants for operators of closed venues, like museums, theaters, concert halls, and other venues.
Additional funding for the SBA ($1.325 billion)
This capital is meant to help the SBA manage programs that have fallen under its purview.
A Third Stimulus Check
The American Rescue Plan includes a third stimulus check of $1,400 (this includes a check per child).
So that people who need it the most actually receive the money, only people making no more than $75,000 or a head of household making no more than $112,500 or a married couple making no more than $150,000 will receive it. These numbers are based on AGI (Adjusted Gross Income).
This also means that citizens above these limits won’t be able to get a partial check by having dependents.
As part of his American Rescue Plan, Biden proposed to extend the unemployment benefits created in the $900 billion COVID-19 relief package from December 2020.
His $1.9 trillion relief package plans to extend the $300 benefits until September 6. This $300 benefit would start after March 14, when the current ones expire.
Child Tax Credit
The bill will increase the child tax credit benefit to $3,000 per child (originally, it was just $2,000). It will also offer a $600 bonus for children under the age of 6.
The American Rescue Plan will also make the child tax credit refundable and authorize periodic payments.
- Vaccine distribution ($7.5 billion)
- Testing and contact-tracing efforts ($48 billion)
- Rental assistance ($22 billion)
- Child care ($39 billion)
- Help for the restaurant industry ($29 billion)
- Help for schools and universities ($160+ billion)
What’s the timeline for this package?
Public officials are tracking to release this package by March.
The reconciliation bill is set to be released by February 22, 2021.
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