We want to hear from you. President Joe Biden turned up at a minority-owned flooring business in suburban Philadelphia on Tuesday to highlight how his $1.9 trillion coronavirus relief package can help small businesses and to put a face on those who have struggled throughout the pandemic. AP Photo/Matt Slocum. This includes having to stay home to supervise their children while they attended virtual classes. Pew Research has shown 67% of Americans favor raising the wage to $15 an hour. Biden Says White Men Will Be Last in Line for Small Business Relief. 114. January 11, 2021. Cobra – or Continuation of Health Coverage – is a federal law that requires employers to make health insurance available under their corporate health plans to employees for a certain period of time who lose their benefits because of layoffs or reduced hours of employment. President Biden announced on Monday that he would make it easier for certain small business owners with student loans and past felony convictions to access federal financial relief … President Biden announced on Monday that he would make it easier for certain small business owners to access federal financial relief programs enacted in response to the COVID-19 pandemic and recession. "An economy that is fully re-opened and recovers with relative speed will save countless Main Street businesses and jobs, and provide a spark for new entrepreneurs to launch new businesses and hire," said Karen Kerrigan, SBE Council president and CEO, in a statement. ‘All of the stimulus programs contained generous tax incentives that can not only save business owners a … Of all Biden’s tax proposals, the one that would probably directly affect your small business the most is his proposal to create tax credits for small businesses that offer their employees retirement plans. All Rights Reserved. CEO David Reiling praised the Small Business Administration's decision to let community lenders lead the way this round. The credit was initially part of the March 2020 Cares Act and has been extended through 31 December 2021. They also know that leveraging them could provide much needed funds to help them navigate to, and through, the post-pandemic recovery. Biden Visits Small Business in Pennsylvania Touting Relief Bill: "More Help is On the Way" By Spectrum News Staff Nationwide UPDATED 4:37 PM ET Mar. Eliminating the Cap on the Small Business Fund – The President-elect wants to guarantee relief for all businesses and ensure that they will no longer have to compete for resources. We’re telling our clients to amend and file their corporate returns as quickly as possible in order to start the refund process, which takes an average of six weeks. Here are five that every small business owner should be considering. All of these calculations are done on a company’s quarter federal tax returns. The idea is that people don’t lose their health insurance if they lose their jobs, but they do have to pay. WASHINGTON (AP) — President Joe Biden announced changes Monday to target more federal pandemic assistance to the nation’s smallest businesses and ventures owned by women and people of color. Some of my clients are calculating this credit in advance before a hire and then using it as a signing bonus to help them better compete against others seeking talent. In addition, there's lingering uncertainty for small business owners in the new year. The employee retention tax credit is one such tax incentive. Thanks to the stimulus programs, there are now five ways small can save big on their taxes in 2021 … and even get money back. Biden's call for a more than doubling of the current federal minimum wage drew both criticism and praise. Small business confidence dipped in December as Covid-19 cases surged and Main Street awaits the changing of the guard in D.C. The Biden-Harris administration will also make a sustained effort to work with lenders and small business owners to ensure small businesses take maximum advantage of this two-week window. A majority of small business owners support the $1.9 trillion Covid relief package being pursued by President Joe Biden, according to a CNBC survey. "Clearly, specific industries and areas of the nation have been hit harder than others, and initiatives focused on these sectors and communities will bring about a more balanced recovery," Kerrigan said. "The vast majority are going to be sole proprietors and these loans are going to be maybe a couple thousand dollars. At Sunrise Banks in St. Paul, Minnesota, demand for aid has been high from smaller companies since the program opened on Monday. Biden said he is open to ideas to make his $1.9 trillion aid plan "better and cheaper" but added that small businesses must be supported. However, a requirement to more than double some workers' wages will harm struggling businesses and likely slow the recovery," said Matt Haller, IFA senior vice president of government relations and public affairs, in a release. The read is below the NFIB's historical average of 98, as fewer small businesses expect sales to pick up or for the economy to improve in the next six months. But there's a catch. Bigger stimulus checks. This legislation predated the Cares Act in 2020 and required employers to compensate their employees if they had to take time off because they, or their family members, were affected by Covid. They know that these benefits are short-term. My smartest clients are already talking to their tax advisers and getting help. His plan focuses on three specific actions taken with Congress: Grants to more than “1 million of the hardest hit small businesses” $15 billion in flexible grants; Distributed equitably to small businesses In a new provision, the American Rescue Plan now fully subsidizes for the continuation of Cobra benefits for employees from April through September and offers a tax credit for employers who continue to pay for the health insurance premiums on behalf of their laid-off employee. These numbers are likely to increase significantly over the next few months as the economy recovers. Biden noted that small businesses account for nearly half of the U.S. workforce but have suffered revenue losses of 32 percent. A Division of NBCUniversal. Biden promises relief plan oversight, claiming fraud led to small business ‘free-for-all’ under Trump The president promised not to let small business go under with help on the way Credibly , Credibly.com. Next Post: FACT SHEET: Biden-Harris Administration Increases Lending to Small Businesses in Need, Announces Changes to PPP to Further Promote Equitable Access to Relief FACT SHEET: Biden … At Sunrise Banks in St. Paul, Minnesota, demand for aid has been high from smaller companies since the program opened on Monday. But for those employers that do continue to offer these benefits – which now includes time off to get vaccinated or to recover from any effects of vaccinations – the credit is still available and has been extended through September. The International Franchise Association said it was pleased to see vaccine strategy and aid for businesses but said the wage hike could be counterproductive. 16, 2021 PUBLISHED 9:41 AM ET Mar. President Biden's massive coronavirus relief package doesn't extend the Paycheck Protection Program beyond next month, but Mr. Biden moved Monday to … Increased funding for … In some cases, our lowest one today has been $250," Reiling said. Beyond small business aid, Biden’s proposal includes $1,400 direct payments to individuals, a national vaccine strategy and a $15 an hour federal minimum wage. Thanks to the Cares Act – and subsequent stimulus bills which kept this rule in place – companies that lost money those years can, for one time only, carry back those losses for up to five years. Biden's Covid relief means small businesses can save big on taxes in 2021. That's far lower than the two previous coronavirus relief bills that lawmakers have passed. It’s called the work opportunity tax credit and it provides a credit on income taxes due for any employer that hires a veteran, someone off of welfare or – more timely – a worker who has been unemployed more than six months. There is another big benefit for companies that lost money in either 2020, 2019 or 2018. The signing of the American Rescue Act this week means that more than $5tn has been spent on stimulus programs in the US to fight the economic impact of the Covid pandemic. However, all of the stimulus programs contained generous tax incentives that can not only save business owners a significant amount on their taxes in 2021, but also provide additional funding. The aid requests coming in are small but show that micro-businesses and sole proprietors are in need. 2268. The credit is also available to businesses that participate in the paycheck protection program, although wages used for forgiveness cannot be used to calculate the credit. Which means that if a business paid taxes in the past, those losses would reduce what was owed and therefore a company would be due the money back. Lifting mask mandates in Texas has caused conflicts for small businesses | Gene Marks, ‘All of the stimulus programs contained generous tax incentives that can not only save business owners a significant amount on their taxes in 2021, but also provide additional funding.’. Fact check: Biden said he plans to increase COVID-19 small business relief to people of color and women Devon Link, USA TODAY 1/21/2021 White nationalists are using Christian symbols to send a message The aid Biden laid out would be in addition to the current Paycheck Protection Program, which reopened this week with both new fraud protections and an emphasis on serving smaller businesses that may have missed out on aid when the program rolled out last year. Biden targets smallest businesses with exclusive aid window Only businesses with fewer than 20 employees will be able to apply for aid through the massive Paycheck Protection Program. Clearly there are significant tax benefits – many which include cash refunds – for small business owners who choose to take advantage of them. Data is a real-time snapshot *Data is delayed at least 15 minutes. Advertiser Disclosure The following post was … Biden's Big Plans for Small Business in His First 100 Days He wants to plow billions into vaccine production and distribution, and billions more into new aid for small businesses. "Our goal is to ensure small businesses can continue to provide for their communities and their employees. The Biden administration announced Monday plans to deliver “equitable relief” to small businesses impacted by the coronavirus outbreak, with a focus on minority-owned businesses. The National Federation of Independent Business' monthly index fell 5.5 points to 95.9. In the American Rescue Plan Biden unveiled last week, $15 billion in grants will be allocated to small businesses employers, along with $35 billion in low-interest loans. 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