On March 30, 2021, President Biden signed legislation to extend the application period of the popular Paycheck Protection Program (PPP) through May 31, 2021. This followed a bipartisan 92-7 vote in the U.S. Senate to pass the Paycheck Protection Program Extension Act of 2021.

An eligible employer is allowed a credit against their Medicare payroll taxes for each quarter in an amount equal to 70% of the qualified wages in 2021. The Act extends the Employee Retention Credit (ERC) from June 30, 2021 until December 31, 2021.

When the Small Business Administration (SBA) launched the Paycheck Protection Program (PPP) last year, the program’s stated objective was “to provide a direct incentive for small businesses to keep their workers on the payroll.” However, according to federal officials, the recently issued second round of funding has distributed only a small percentage of the $15 billion set aside for small businesses and low- to moderate-income “first-draw” borrowers.

The Consolidated Appropriations Act (CAA), 2021, signed into law on December 27, 2020, extended the employer tax credits available to employers who voluntarily pay eligible employees sick leave and/or expanded family and medical leave through March 31, 2021. Learn more about the extension in this article.

The State of Michigan announced a new grant program for small businesses who are experiencing ongoing loss from COVID-19 and the Gatherings and Mask Order. Learn more about the Program in this article.