Stimulus Checks for Small Business Owners: Grants, Tax Breaks, and Payroll Relief

Published April 2, 2025 · Updated April 2, 2025

Small businesses are facing a tough time in 2025. Inflation, labor shortages, and supply chain issues are all weighing them down. But here’s the good news: there’s over $50 billion in untapped grants, tax breaks, and payroll relief available to help you out. Whether you’re a café owner struggling to keep up with rising coffee costs or a contractor dealing with material price hikes, this guide will show you how to use Stimulus checks as Small Business owner to reduce your tax bill, and protect your payroll without getting bogged down in paperwork.

Also read, How Inflation is effecting stimulus checks and is eating into your funds and savings.

Federal Grants: How to get Free Money that You Don’t Have to Repay

1. Restaurant Revitalization Fund (RRF) Relaunch

After spending a whopping $28.6 billion in 2021, Congress decided to give the Restaurant Revitalization Fund (RRF) a second chance with an extra $10 billion for 2024. This fresh cash is meant to help businesses that are still trying to bounce back from the pandemic’s tough times.

You may be eligible if you own Restaurants, food trucks, bakeries, or a bar with 2020–2023 revenue losses.
The Grant can Range from $10k–$5 million (based on pandemic losses).

2. State-Specific Small Business Boosters

The California state offers Small Business COVID-19 Relief Grant offers up to $25k for businesses in disadvantaged zip codes.
The state of Texas provides Texas Enterprise Fund for hiring + expansion the average sum is around $50k.

Small business owners from New York that were affected by COVID-19, Capital Costs Tax Credit reimburses 50% of PPE/ventilation upgrades.

Tax Breaks: Slash Your 2024 IRS Bill Legally

1. Employee Retention Credit (ERC) Extended

Don’t let those rumors fool you! The Employee Retention Credit (ERC) is still here and ready to help. If you meet the eligibility criteria, you could be in for a sweet treat, with up to $26,000 per employee on the table!

If your business faced a revenue drop more than 20% in 2023 vs. 2022.

You kept staff during COVID shutdowns (even if partially).

2. 100% Bonus Depreciation

In 2025, businesses can write off a whopping 100% of equipment and vehicle purchases thanks to this awesome IRS rule called Section 168(k). It’s like a golden ticket that lets you take full advantage of bonus depreciation for eligible assets.

3. R&D Tax Credit for Small Businesses

If you’ve created a new product like an app, or process, you might be able to get up to $250,000 in credits. These credits can help you pay for research and development, which is a huge deal for innovation.

Payroll Relief: Keep Your Team Without Going Broke

1. Work Opportunity Tax Credit (WOTC)

If you have Hired veterans, ex-felons, or SNAP recipients in your small business? You can be eligible to get $2,400–$9,600 per hire in tax credits.

You can claim these tax credits by submitting IRS Form 8850 within 28 days of hiring.

2. State Unemployment Tax (SUTA) Reduction

You can lower your State Unemployment Tax Act (SUTA) rate by avoiding layoffs, as states like Florida reward stable employers with rate cuts of up to 30%. Additionally, in states like Ohio, Pennsylvania, and Illinois, making voluntary contributions by prepaying 2025 taxes can lead to immediate savings.

3. Health Insurance Subsidies

The SHOP Marketplace offers a fantastic 50% discount to businesses that provide health insurance to their low-income employees. This incentive helps small businesses save on healthcare costs while supporting their employees..

3 Costly Mistakes That Sink Your Applications

How to Apply for ERC in 2025?

Missing Deadlines: ERC and RRF have strict windows remember to set calendar alerts.
Underreporting Revenue Losses: Use bank/POS statements, not just tax returns.

Ignoring Local Grants: 70% of city/county grants go unclaimed annually.

FAQs:

Q: Can I get both ERC and PPP forgiveness?
A: Yes! But ERC can’t cover wages paid with PPP funds.

Q: Do freelancers qualify for small business grants?
A: Only if registered as an LLC or corporation (sole proprietors often excluded).
Q: How to prove COVID impact for grants?

A: Compare 2019–2023 bank statements or use Google Analytics traffic dips.
Q: What if I owe back taxes?
A: Many grants (like RRF) still allow applications—use funds to negotiate IRS payment plans.

The Scam Alert: Grant Fraud on the Rise

Fraudsters prey are more than often found feeding on desperate owners with:

Phony “Grant Processing Fees”: Legitimate programs and Government funds never charge any fee upfront.
Fake SBA Emails: Always remember to verify URLs, official sites use .gov, not .com.

Conclusion

2024’s stimulus programs are a small business owner’s secret weapon—but only if you act fast! By layering grants, exploiting tax breaks, and leveraging payroll relief, you can outlast inflation, retain your team, and reclaim profitability. Keep in mind that 70% of government grants and funds go unclaimed, so this article helps you keep track of any advantages you can take of these grants to gain Stimulus checks for your Small Businesses.