Update on Tax Credits, RRF & SVOG

Under the American Rescue Plan (ARP), employers are entitled to tax credits for providing paid leave to employees who take time off related to COVID-19 vaccinations. The time off is expanding the sick and family leave credits under the Families First Coronavirus Response Act (FFCRA). The FFCRA required employers with fewer than 500 employees to provide up to 80 hours of sick leave for COVID-19 related illnesses and 10 weeks of paid family leave to employees for caring for a family member due to concerns related to COVID-19 and for caring for a child if the child’s school or place of care has been closed, or the childcare provider is unavailable due to COVID-19 precautions.

The requirement to provide such sick or family leave expired on December 31, 2020. Still, if the employer voluntarily pays the employee for the COVID-19 related sick or family leave, including vaccinations, they can claim those credits through September 30, 2021. It should be noted that wages for which an employer claims the credits for sick and family leave should be excluded from wages used for Payroll Protection Plan loan forgiveness.

The Small Business Administration (SBA) released a sample application for Restaurant Revitalization Fund (RRF) grants, as well as an RRF program guide. The sample application and program guide are available on the RRF landing page in the Supplemental Documents section. At this time, the opening date for grant applications has not been finalized, but applicants can proactively gather the information and documents needed for the application by reviewing the sample.

The Shuttered Venues Operators Grant portal, which was originally opened on April 8th but experienced technical difficulties and was subsequently closed, opened again on Monday, April 26th. The applications will be processed under the following priority schedule: