American Rescue Plan   

The American Rescue Plan, a $1.9 trillion relief bill, has been signed into law. Below is an overview of the bill and its key provisions for businesses: 

Small Business Assistance   

Small business assistance includes:   

  • Economic Injury Disaster Loan program: $15 billion   
  • New grant program for bars and restaurants: $28 billion   
  • Paycheck Protection Program: $7.25 billion
  • New eligibility criteria for PPP borrowers and prioritization of minority-owned businesses / businesses in low-income communities

Unemployment Aid   

The bill extends the Pandemic Unemployment Assistance Program and the Pandemic Emergency Unemployment Compensation Program. The bill provides enhanced unemployment assistance payments of $300 per week. These programs are extended through September 6, 2021.   

Emergency Paid Leave   

The bill provides tax credits for employers that voluntarily offer leave under FFCRA through the end of September 2021. Employers cannot discriminate in granting paid sick leave or emergency FMLA to a certain class of employees. If an employer offers paid leave under the FFCRA, it must be offered to all employees. Employers are free, however, to choose to offer paid sick leave but choose not to offer paid emergency FMLA.

Health Insurance   

The bill subsidizes private health insurance premiums for unemployed workers through COBRA. The bill allows individuals eligible for COBRA to maintain their employer-sponsored coverage after losing employment without paying any portion of the premiums through the end of September 2021.   

The bill invests nearly $35 billion in premium subsidy increases for those who buy coverage on the ACA Marketplace. The bill increases the subsidies provided to currently eligible individuals and removes the 400% federal poverty level cap ($51,000 for an individual) on subsidy eligibility.   

RBN is Here to Help 

RBN Insurance Services is here to help employers navigate the details of this bill. Reach out with questions about how this new bill may affect you and your organization.   

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