COVID Economic Relief on the Way with Second Stimulus Package |
Congress passed a $900 Billion economic relief package on Monday, December 21, 2020. The bill combines coronavirus-fighting funds with financial relief for individuals and businesses.
President Trump, however, has not signed the bill and is requesting that lawmakers boost the bill's $600 stimulus checks to $2,000 per person.
The Stimulus Package as Congress agreed upon includes restarting the Paycheck Protection Program (PPP) while doing away with the restriction that left more than $100 billion unspent over the summer.
Businesses that are still struggling may be able to get another round of help — but they’ll have to meet stricter criteria. For example, only companies with 300 or fewer employees will be eligible for second loans, down from a limit of 500 in the program’s first iteration.
Also, loans will be capped at $2 million instead of the previous limit of $10 million.
The stimulus package also gives the SBA $50 million to conduct audits and take other efforts to tackle fraud in the program.
We await to see what amendments will be made, if any. For now, we have summarized the key provisions of the bill Congress negotiated.
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$500 Million in Grants for California Small Businesses |
AmPac is excited to partner with Lendistry, the administrator of the grant program.
Details about the program are forthcoming. Stay tuned!
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Two Immigrant-Owned Businesses...
One SBA 504 Solution
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At first glance, a crawfish distributor and a fencing company may not seem like your average “business partners”, but when a 175,000 square foot industrial warehouse went up for sale in Montclair, CA, the SBA 504 loan program offered both businesses the opportunity to work together and grow in ways they never imagined.
The crawfish distribution company receives shipments of crawfish from China and Egypt and keep them at their warehouses in Atlanta, New Jersey, Houston, and California, where they package and prepare for sale throughout the U.S.
The latter business is a supply and transport company for imported gardening supplies. With warehouses in Georgia and Tennessee, they work to sell their products for wholesale to industrial customers throughout the U.S.
These two immigrant-owned businesses worked in partnership with AmPac Business Capital and Bank Five Nine to secure a SBA 504 loan to help them purchase a facility they both could benefit from. However, this creative financing solution did not come without a few challenges, including:
- Clearance of legal permanent resident status
- Recent assumption/merger with varying ownership
- Technical assistance support for professional financial statements
- Establishment and documentation of down payment resources
- Appraisal shortfall
As a result of the project, the owners were able to jointly move their business operations into the warehouse and consolidate their west coast operations, creating 15+ new jobs in the midst of a global pandemic throughout the process. Today, the two businesses continue to solidify and build their businesses within their community and the broader United States.
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AmPac Welcomes Two New Members to the Team |
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ANA RUBALCABA
Vice President Grant Administrator
Ana Rubalcaba brings extensive experience and a diverse background to her role as VP Grant Administrator, including several years as a banking VP and as a community development specialist, CRA officer, and an underwriter.
She is passionate about strengthening communities and utilizing grants for community reinvestment. She is well connected in the community as she has developed and organized countless community events.
Ana has also serves on a variety of boards including Community Career Development, Inc., East Los Angeles College, and Asian Rehabilitation Services Inc, to name a few.
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RICHARD PALLAY, JR
Senior Vice President Community Lending
With nearly a decade of experience facilitating economic development initiatives for a wide range of public and private organizations, Richard Pallay brings a wealth of expertise that will allow AmPac clients to achieve their entrepreneurial goals. As the newly appointed Senior Vice President of Community Lending, the New York native is tasked with expanding the existing team of superstars to further the impact of non-traditional lending to small business owners throughout the Inland Empire.
“It’s an absolute honor to join AmPac’s current successes in connecting Inland Empire entrepreneurs to financial resources to help them thrive,” said Pallay.
As an alumnus from Pasadena City College and Pace University, Pallay has worked for the financial giant Wells Fargo, the City of Los Angeles, and Opus Bank, to name a few. In several pivotal roles, he has facilitated more than $60 million dollars in loan submissions. This infusion of capital not only allows businesses to operate, but it stimulates employment opportunities in communities that need support the most.
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Financing Programs and Resources |
Pacific Coast Regional (PCR) Disaster Microloan for People of Color:
$50K, 3% fixed 7 year term disaster relief loan focused on black and latino small businesses
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Black New Venture Competition:
Virtually pitch for $175K (non-dilutive) in total prize money.
Application deadline Jan 2, 2021
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Black Ambition:
Prizes up to $1M to fund bold ideas and companies led by Black and Latinx entrepreneurs
Application deadline Feb 18, 2021
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Merry Christmas from Our AmPac Family to Yours! |
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AmPac Business Capital | ampac.com |
909-915-1706
Making Access to Business Capital
as Easy As ABC
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