WASHINGTON, DC – Today U.S. Representatives Eric Swalwell (D-CA) and John Katko (R-NY) acted to help small businesses reeling from COVID-19’s economic fallout by reintroducing the Main Street Revival Act, which would allow certain small businesses to defer payment on their first year of payroll taxes.
The Main Street Revival Act would let certain small businesses defer paying payroll taxes during their first year in operation to free up money during that critical launch period. The deferred taxes would then be paid in installments over the next four years of operation. The option is limited to businesses expecting to hire no more than 25 people in their first year, and located in Historically Underutilized Business Zones, known as HUB Zones, as identified by the Small Business Administration.
“Small businesses are at the heart of our economy, and as we work to solve this public health crisis, we must also be looking out for those who keep our communities up and running,” said Swalwell. “The Main Street Revival Act helps new small business owners build a strong foundation for the future and alleviates a significant source of financial stress, while freeing up cash that can be critical in the first year. As businesses begin to navigate new health and safety protocols, this cash could be a necessary lifeline for many.”
“Today, I’m pleased to partner with Congressman Swalwell to introduce the Main Street Revival Act,” said Katko. “This bipartisan bill would allow small businesses opening in Historically Underutilized Business (HUB) Zones to defer payments on their first year of employment taxes over the course of a four year period. By providing new businesses with flexibility during this uncertain time, our bipartisan legislation will create jobs and work to revitalize distressed communities.”
Congressman Swalwell has long championed this issue, introducing the Main Street Revival Act as his first bill during his first term in Congress.
Small businesses are struggling to get back on their feet following the disruptions caused by the coronavirus. As businesses begin to navigate this new normal, the Main Street Revival Act would encourage entrepreneurs to continue to grow their businesses, and would allow for investment into underdeveloped communities. The CARES Act enacted earlier this year also enables businesses to defer payroll taxes for a limited period; the Main Street Revival Act utilizes this concept and makes it permanent for a small business’s first year if it is located in a HUB Zone. This assistance for small businesses has strong bipartisan support, and it is necessary now more than ever.
To read the full text of the bill, click here.
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