Question: What is the American Rescue Plan Act (ARPA)?
On March 11, President Joe Biden signed the American Rescue Plan Act 2021 (ARPA), a $1.9 trillion coronavirus rescue package designed to facilitate the United States’ recovery from the devastating economic and health effects of the COVID-19 pandemic. The package provided $350 billion in emergency State and Local Fiscal Recovery Funds (SLFRF) for state and local governments to respond to the COVID-19 emergency and bring back jobs.
Question: How much is Irvine receiving from ARPA?
Irvine is receiving $56 million from ARPA’s State and Local Fiscal Recovery Funds. The City has received the first half of its allocation and will receive the second half next year.
Question: How can ARPA’s State and Local Fiscal Recovery Funds be spent?
ARPA SLFRF funds can be used for the following:
- To respond to the pandemic or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality;
- For premium pay to eligible workers performing essential work (as determined by each recipient government) during the pandemic;
- For the provision of government services to the extent of the reduction in revenue due to the pandemic (relative to revenues collected in the most recent full fiscal year prior to the emergency);
- To make necessary investments in water, sewer, or broadband infrastructure
Question: What help is available for rental assistance?
Emergency Rental Assistance Program: The state and federal governments recently established Round 2 funding for the Emergency Rental Assistance Program. This program provides financial assistance for rent and utilities to income-eligible renters and their landlords who have been impacted by COVID-19. The City of Irvine has joined the State of California COVID-19 Rent Relief program for Round 2.
Please click the following external link to read about the State’s program: https://housing.ca.gov/covid_rr/program_overview.html
You may apply directly to the State of California Rent Relief program on the State of California website by clicking the “Apply Now” button. Please note, your application will be reviewed and processed by the State. Neither the City of Irvine nor Orange County United Way will have access to your application.
For questions on the State program, including eligibility or assistance with the application, please contact the California COVID-19 Rent Relief Call Center at 833-430-2122.
If you need assistance in another language, or if you need help seeing if you’re eligible, filling out an application, or uploading required paperwork, please call 833-687-0967.
Additionally, ARPA has provided funding for the following federal government programs, which may be of assistance:
- Emergency Housing Vouchers: EHV provides 70,000 housing choice vouchers to local Public Housing Authorities (PHAs) in order to assist individuals and families who are: Homeless, At risk of homelessness, Fleeing domestic violence, dating violence, sexual assault, stalking, or human trafficking, or were recently homeless or have a high risk of housing instability. More information about this program can be found at this external link: https://www.hud.gov/ehv Local PHAs can be located by using the HUD’s search at the following external link: https://www.hud.gov/program_offices/public_indian_housing/pha/contacts
- Housing Counseling Funds: This program directly supports the housing counseling services provided by 219 HUD-approved local housing counseling agencies, national and regional organizations, and state housing finance agencies. Information about the program can be found here: https://www.hud.gov/press/press_releases_media_advisories/HUD_No_20_177 and HUD-approved local housing counseling agencies can be located using the HUD’s search at the following external link: https://apps.hud.gov/offices/hsg/sfh/hcc/hcs.cfm
- Fair Housing Initiatives Program: Fair housing organizations and other non-profits that receive funding through the Fair Housing Initiatives Program (FHIP) assist people who believe they have been victims of housing discrimination. FHIP organizations partner with HUD to help people identify government agencies that handle complaints of housing discrimination. More information about this program can be found here: https://www.hud.gov/program_offices/fair_housing_equal_opp/partners/FHIP and HUD’s FHIP organizations can be located using the HUD’s search at the following external link: https://www.hud.gov/program_offices/fair_housing_equal_opp/contact_fhip
Question: What help is available for utility assistance?
Utility assistance is available through the State’s Emergency Rental Assistance Program. This program provides financial assistance for utilities and rent to income-eligible renters and their landlords who have been impacted by COVID-19. Please click the following external link to read about the State’s program: https://housing.ca.gov/covid_rr/program_overview.html
Please note, you may apply directly for this assistance on the State of California website. Your application will be reviewed and processed by the State. Neither the City of Irvine nor Orange County United Way will have access to your application.
For questions on the State program, including eligibility or assistance with the application, please contact the California COVID-19 Rent Relief Call Center at 833-430-2122.
If you need assistance in another language, or if you need help seeing if you’re eligible, filling out an application, or uploading required paperwork, please call 833-687-0967.
Additionally, ARPA has provided funding for the following federal government programs, which may be of assistance:
- Emergency Food and Shelter Program: This program under FEMA supplements and expands ongoing work of local nonprofit and governmental social service organizations to provide shelter, food, and supportive services to individuals and families who are experiencing, or at risk of experiencing, hunger and/or homelessness. The Emergency Food and Shelter Program funds local agencies in the states to provide an array of emergency assistance, including a month of utility assistance to tenants at risk of eviction or homeowners at risk of foreclosure.
- https://www.fema.gov/grants/emergency-food-and-shelter-program
Question: What assistance is available for small businesses?
At the state level, there are several grant opportunities for small businesses:
- California Relief Grant: The Governor signed SB 129 into law, which provides an additional $1.5 billion in small businesses and non-profit grant funding, bringing the total investment in the Small Business COVID-19 Relief Grant Program to $4 billion.
- Round 9 of the California Small Business COVID-19 Relief Grant will open on September 9, 2021, and the application window will close September 30, 2021. This program will support small businesses and nonprofits impacted by COVID-19 and the related health and safety restrictions.
- Eligible grant award: $5,000 - $25,000
- Note: Applicants not selected to move forward in the review process in Rounds 1, 2, 3, 5, 6, or 7 do not need to re-apply and will be automatically moved into Round 9. New applicants will need to apply at https://careliefgrant.com/
- Cal Competes Tax Credit: Augments the existing Cal Competes Tax Credit by $110 million on a one-time basis. Provides tax credits that support small business hiring and the hiring of homeless individuals. Specifically expands the eligible factors of the Cal Competes program:
- Increased hiring tax credits to Small Businesses (most likely via the SBA’s definition of 300 or less employees)
- Increased hiring tax credits to any business hiring homeless or displaced individuals.
- Note: in most cases, only full-time employees are eligible for Tax Credit calculations.
- https://business.ca.gov/california-competes-tax-credit/
- Cal Competes Grant Program: Includes $120 million to create the Cal Competes Grant Program. The specifics of the program will be developed prior to the program opening for applications. Current guidance indicates that it will be a companion to the existing Cal Competes Tax Credit, providing grant funds to small businesses that hire new employees, re-hire employees lost during COVID-19, or hire homeless individuals.
At the federal level, there are several programs in place to assist businesses:
- Economic Injury Disaster Loan: In response to COVID-19, small business owners, including agricultural businesses, and nonprofit organizations in all U.S. states, Washington D.C., and territories can apply for the COVID-19 Economic Injury Disaster Loans.
- https://www.sba.gov/funding-programs/loans/covid-19-relief-options/eidl/covid-19-eidl#section-header-6
- SBA Debt Relief Program: This program offers debt relief to existing SBA loan borrowers whose business have been impacted by COVID-19.
- https://www.sba.gov/funding-programs/loans/covid-19-relief-options/sba-debt-relief
- Employee Retention Tax Credit: Allows businesses to offset their current payroll tax liabilities by up to $7,000 per employee per quarter.
- https://home.treasury.gov/policy-issues/coronavirus/assistance-for-small-businesses/small-business-tax-credit-programs
- Paid Leave Tax Credit: ARPA extends through September 2021 the availability of Paid Leave Credits for small and midsize businesses that offer paid leave to employees who may take leave due to illness, quarantine, or caregiving. Businesses can take dollar-for-dollar tax credits equal to wages of up to $5,000 if they offer paid leave to employees who are sick or quarantining.
- https://home.treasury.gov/policy-issues/coronavirus/assistance-for-small-businesses/small-business-tax-credit-programs
Question: What help is available for child care assistance?
Federally, there are tax credits available to help with child care:
- Child Tax Credit: Increases the amount of the Child Tax Credit from $2,000 to $3,000 for tax year 2021 for children at the age of 17 or younger. The credit is increased to $3,600 for children who are under age 6 at the close of tax year 2021. Individuals eligible for a 2021 Child Tax Credit will receive advance payments of the individual’s credit, which the IRS and the Bureau of the Fiscal Service will make through periodic payments from July 1, to December 31, 2021.
- https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021
- Child and Dependent Care Tax Credit: The Child and Dependent Care Tax Credit (CDCTC) was temporarily expanded to help partially offset working families’ child care expenses. ARPA made the credit refundable for 2021, increased the cap on expenses, and increased the credit rate for many low- and moderate-income taxpayers, and declined for high-income taxpayers.
- https://www.irs.gov/forms-pubs/about-publication-503
Question: How is ARPA supporting Irvine schools?
- The $1.9 trillion American Rescue Plan Act (ARPA) will send $15.3 billion in assistance to California’s K-12 schools. Irvine Unified School District (IUSD) is expected to receive $18.2 million and Tustin Unified School District is expected to receive $22.9 million. The funding must be used on COVID-related learning and school reopening expenses. Please use the following external links to view both unified school districts’ Safe Return to In-Person Instruction and Continuity of Services Plans:
- IUSD’s Safe Return to In-Person Instruction and Continuity of Service Plan
- TUSD – Safe Return to In-Person Instruction and Continuity of Service Plan
- EdSource: School District COVID-19 Relief Database
Question: What help is available for nonprofits?
- Federally, the below programs can assist nonprofits:
- Economic Injury Disaster Loan: In response to COVID-19, small business owners, including agricultural businesses, and nonprofit organizations in all U.S. states, Washington D.C., and territories can apply for the COVID-19 Economic Injury Disaster Loans.
- https://www.sba.gov/funding-programs/loans/covid-19-relief-options/eidl/covid-19-eidl#section-header-6
- Emergency Food and Shelter Program: This program under FEMA supplements and expands ongoing work of local nonprofit and governmental social service organizations to provide shelter, food, and supportive services to individuals and families who are experiencing, or at risk of experiencing, hunger and/or homelessness.
- https://www.fema.gov/grants/emergency-food-and-shelter-program