Small business have suffered the most due to the economic slowdown propagated by the COVID-19 pandemic last year. Small businesses and the entire startup culture faced a stiff challenge of standing up to reduced revenue. This tense time continues to rage on.
Arizona ranked among the top 10 states where small businesses were worst hit in a WalletHub report. Many small businesses had to make some hard decisions due to a constantly diminishing flow of money that were ill-disposed for their employees. A part of that was giving up employee health insurance coverage.
The new federal law passed in March, American Rescue Plan Act (ARPA), brings some hope with its promising relief fund package. It aims to empower Americans in matters of healthcare. The Federal plan grants Arizona almost $1.4 billion of the $1.9 trillion ARPA relief funds to be assigned to all American States.
Additionally, the cities with the state are receiving a $1 billion relief fund. It would mean that Arizona households from the lower economic class will receive quite a few benefits from the state. Most importantly, one will not have to spend too much on health insurance. As an employer, you can get affordable medical insurance for your employees.
How does ARPA Impact Small Businesses?
Paid Leave
If you are an employer with less than 500 employees, you get Federal tax credits through the Families First Coronavirus Response Act (FFCRA). But under this same act, you have to pay paid leave for a maximum of 80 hours or two weeks of Emergency Paid Sick Leave.
The ARPR act promises to extend the credits to avoid hurting the businesses when employees cannot make it due to COVID-related emergencies. So the employers are now not bound to offer paid leave for COVID-19, but if they do so voluntarily, they get the extended credits. It is valid till September 30th, 2021.
Additional Funds for Small Business under Several Programs
Small companies, businesses, or the self-employed workforce can get some monetary relief in several ways. Check whether you qualify for these loans or not:
- Small Business Administration (SBA)
- Paycheck Protection Program
- Shuttered Venue Operators Grant Program.
The state can grant up to $8 billion worth of loans to eligible small businesses through these programs. You will also need a team of consultants who can help your employees understand their needs. Then, suggest to them the best affordable medical insurance that will be worth the cost.
To save you some time, you can directly look for the insurance plans under Cigna and Oscar merge, as they fulfill most of the mentioned benefits. They are yet to launch in Arizona from 1st July. You can apply through the Special Enrolment Window.