After a marathon voting session over the weekend, the Senate passed a massive $1.9 trillion stimulus package–dubbed the American Rescue Plan Act. The legislation means another $50 billion in aid for small business through the Paycheck Protection Program, as well as grants for bars and restaurants and shuttered venues. No Republicans voted to approve the measure.
The Senate bill, which awaits final approval by the House and President Joe Biden, does not boost the federal minimum wage, which now stands at $7.25 an hour and hasn’t been lifted since 2009. The House voted in late February to raise the minimum rate to $15 an hour by 2025. It’s unclear whether some House Democrats will contest the bill absent the minimum wage provision, or agree to move ahead and raise the issue later. Lawmakers generally want to pass legislation by March 14–the date enhanced federal unemployment benefits are due to expire.
Either way, here’s what’s currently in the offing for small business:
$7.25 billion for the PPP: More money; but not more time. The forgivable loan program aimed at small businesses was not extended past its current end date of March 31 despite widespread calls from the business community for more time. A coalition of businesses led by the U.S. Chamber of Commerce sent a letter to lawmakers this week, urging them to extend the PPP through year-end. The Senate bill does add $7.25 billion to the program, which kicked off again in mid-January with $284.5 billion. Some larger nonprofits