Update: Friday March, 12 7 AM ET
President Joe Biden signed the American Rescue Plan into law on Thursday, March 11. Biden was originally slated to sign the bill on Friday, March 12, but the bill arrived at the White House late Wednesday and he decided to proceed Thursday.

Congress has passed a new $1.9 trillion economic stimulus plan that, among many other provisions, provides more Paycheck Protection Program money, as well as grants and loans for businesses affected by economic fallout from the coronavirus pandemic.

The Senate approved the plan over the weekend of March 6, and the House approved it Wednesday, March 10. Congress’ lower chamber had previously approved an earlier version of the legislation, but had to revote since the Senate made some modifications. The legislation passed along party lines in both chambers, with Republicans against it and Democrats leveraging their slim majorities (and a process called reconciliation) to pass the plan. President Joe Biden signed the bill into law on Thursday, March 11.

Changes the Senate made to the legislation included eliminating language that would have set the United States on course to having a mandated $15 per hour federal minimum wage. States can set their own minimums, but they cannot be lower than the federal minimum.

While advocates, including Biden, say increasing the wage is essential to bring hardworking people out of poverty, some business leaders and politicians have argued it could dampen hiring and hurt small businesses.

What the American Rescue Plan does include is $7.25 billion in additional funds for the Paycheck Protection Program (PPP), a federal initiative that allows businesses to receive low-interest loans – completely forgivable if certain parameters are met – to pay for payroll and other costs.

Major movement this week in DC on the PRO Act & a new stimulus plan. What’s it mean for the #promproducts industry? Answers in this 2-minute vid. @ASI_MBell @Tim_Andrews_ASI @asicentral @Melissa_ASI pic.twitter.com/mnobBzqcCH

— Chris Ruvo (@ChrisR_ASI) March 12, 2021

Businesses in the promotional products industry and other markets will have until March 31 to apply for any additional PPP funding. The infusion of more than $7 billion in additional funds brings the current round of PPP, which launched around the turn of the year, to about $292 billion. PPP first started in spring of 2020 amid the initial wave of COVID. The total funding to have been made available through the program will now be about $951 billion.

Promotional firms relied on PPP in 2020 to help them through periods when business had effectively disappeared amid COVID-driven shutdowns and related factors. Demand for PPP has continued to be strong in promo in 2021.

In another important development for businesses in promo and beyond, the American Rescue Plan extends the Employee Retention Credit, established under the COVID-driven CARES Act of 2020, through the end of 2021. This is a tax credit aimed at encouraging businesses to keep employees on their payrolls.

Inc. explained: “Businesses can claim the refundable credit equal to as much as $7,000 per employee per quarter during the last half of the year. So, including the existing provision, which is similarly apportioned, employers this year would qualify for up to $28,000 per employee. And if they applied for 2020, the total amount available is $33,000 per employee.”

Meanwhile, the American Rescue Plan establishes $28.6 billion in grants for food service businesses, including bars, restaurants and caterers – good news for promo distributors who partner with clients in this sector. Food service businesses can receive grants equal to the difference between their gross receipts in 2019 and gross receipts in 2020.

Businesses with fewer than 20 locations will be eligible for grants of up to $5 million per location, to a total of $10 million. With societal reopening expected to increase in the months ahead, food service businesses could be keen to put some of this money toward marketing – something with which promo pros can definitely help.

Similarly, the rescue plan establishes another $1.25 billion in available grants for “shuttered venue operators,” which include movie theaters, museums and other institutions that rely on people congregating in their spaces for live events/entertainment.

Eligible applicants may qualify for grants equal to 45% of their gross earned revenue, with the maximum amount available for a single grant award of $10 million. The shuttered venue operator grant program was established at the end of 2020, but has had a delayed start. Still, once it gets fully underway, it appears there’ll be more than $16 billion available in funding, meaning distributors who work with these clients could be in a good position to put the dollars to work marketing to draw patrons back in.

Additionally, the stimulus plan establishes $15 billion for Economic Injury Disaster Loan (EIDL) Advance Grants. The Targeted EIDL Advance provides businesses located in low-income communities with funds to ensure small business continuity, adaptation and resiliency. Small businesses in low-income communities that have been most affected by the pandemic will be eligible for grants of up to $10,000 each. The Small Business Administration (SBA) must provide $5,000 grants to each eligible company, while funds last. Further details on eligibility and more are here.