Since the beginning of COVID-19, small business owners have continued to face ongoing hardships. While some problems stem from pandemic fallout, such as staffing issues or low retention rates, others were unforeseen. To combat these challenges, local government officials have made it a priority to help small businesses within their communities.
What Is ARPA?
The American Rescue Plan Act of 2021 (ARPA) was signed into law as a relief package. The main goal of the act was to support business owners and community members by providing:
- State and local aid
- Education
- Rental assistance
- Transit
- Stimulus payments
Fund Eligibility
Not only was the ARPA implemented for the state but also for local governments. ARPA authorizes additional funding totaling $350 billion to be distributed amongst all 50 states. These funds are only eligible to be used for:
- Revenue replacement due to the COVID-19 public health emergency
- COVID-19 expenditures or negative economic impacts which include assistance to small businesses, households, and hard-hit industries and economic recovery
- Premium pay for essential workers
- Investments in water, sewer, and broadband infrastructure
Fund Restrictions
Since the money is split between state and local aid, there are different requirements that were established. The influx of funds is beneficial to the state and local finances. However, it also supports aiding recovery from budgetary, economic, and financial impacts of the pandemic. Funds are available until December 31st, 2024. Each county within the state can make its own use of the funds, along with providing them with specific monetary amounts, and who can apply for them. All states, however, have the following restrictions:
- Funds may not be deposited into any pension fund
- Funding is to be spent by the end of the 2024 calendar year
- Allocation to states cannot be used to directly or indirectly offset tax reductions or delay tax, or tax increase
Why GMS
At GMS, our mission is to see small businesses succeed. When it comes to changing legislation, GMS is the first to ensure that your business will remain compliant. Stay up to date on all the opportunities to support your business’s recovery following COVID-19. Contact GMS today to learn more.