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In the wake of unprecedented economic challenges caused by the COVID-19 pandemic, the United States government implemented the American Rescue Plan Act (ARPA) to provide crucial financial assistance to individuals and businesses. Among the beneficiaries of this comprehensive relief package are sole proprietors, 1099 contractors, freelancers, single-member LLCs, gig workers, and other self-employed individuals. This blog delves into how the ARPA aims to support and uplift this vital segment of the workforce through various funding allocations.

Signed into law by President Joe Biden on March 11, 2021, the American Rescue Plan Act is a $1.9 trillion economic stimulus package aimed at addressing the multifaceted impacts of the COVID-19 pandemic. While notable aspects of the ARPA include direct stimulus payments to individuals, funding for vaccine distribution, and support for state and local governments, it also earmarks significant resources specifically targeted at assisting self-employed workers and small businesses.

One of the key provisions of the ARPA is the allocation of funds to support self-employed individuals who may have faced financial hardships due to the pandemic. These funds are designed to provide much-needed relief and assistance in navigating the economic uncertainties brought about by widespread lockdowns, business closures, and reduced consumer spending.

The American Rescue Plan Act represents a collaborative effort by the U.S. government to provide comprehensive relief to individuals and businesses grappling with the economic fallout of the COVID-19 pandemic. For self-employed workers, including sole proprietors, freelancers, gig workers, and single-member LLCs, the ARPA offers a lifeline through expanded access to financial assistance programs, enhanced unemployment benefits, and targeted funding initiatives. By supporting and empowering these vital contributors to the economy, the ARPA aims to foster economic recovery and resilience in the face of unprecedented challenges.

The Self-Employed Tax Credit (SETC) can qualify a gig worker for up to $32,000 and can be recieved in as little as 15 days. The deadline falls in April 2025 to claim funds. Watch a 2 minute video to see details on how you can apply and claim tax credits owed to your business.