Relief for Small Businesses in 2021

If you’re a small-business owner, you may be wondering how the financial climate may change now that President Joe Biden has taken office. While 2020 was particularly grim for many small businesses due to the COVID-19 pandemic and the monumental economic fallout that is the result of ongoing quarantine, small-business owners (and others) have hope for 2021. Learn more from the small-business accountants at RockRidge Financial.

Small-Business Challenges

In a Q4 2020 poll taken by the U.S. Chamber of Commerce, almost three-quarters of small businesses across the U.S. said they needed assistance in order to continue to operate.

Your small business may have received some funding from the Paycheck Protection Program in 2020 in order to help your company stay open during the pandemic. And while it may have done just that, small-business owners are only too aware of how quickly that money runs out.

Additionally, many small-business owners did not qualify for PPP, due to varying factors. Will the new year bring new relief for small businesses?

Aid for Small Businesses in 2021

USA Today reported this week that Biden plans to boost aid to small businesses in 2021, giving preference to those run by women and people of color. In a speech, Biden specifically mentioned targeting low-income communities.

Part of Biden’s economic recovery plan includes $15 billion earmarked for small businesses. As of now, that proposed $15 billion is grant money — money that small businesses would not have to pay back. Beyond this assistance, Biden plans to free up $175 billion for loans for small businesses.

Historically, religious small businesses such as church-based schools, religious bookstores, etc., have been barred from applying for or receiving government assistance due to the separation of church and state. But in the final hours of the Trump presidency, an exception was made in an attempt to make these businesses eligible. It is unclear what will happen now with this proposed change under a Biden administration. Our small-business accountants will be watching this development closely.

Small Business Financial Advisors

Part of the difficulty in managing your small business — and your life — during a pandemic as well as a change in administration is the uncertainty that accompanies it. No one can say for sure at this point exactly when aid will be available, who will be eligible to apply for and receive it and when Americans might expect business to return to normal.

At RockRidge Financial, we offer small-business accounting services to help you weather the storm. If you are confused about how to apply for federal aid or if you need help strategizing to find ways to stay afloat until your federal aid comes in, call our small-business accountants today. We’re here to help and support you through good times and bad — you can count on us.