Update on SBA Programs
- Seasonal businesses can pick a 12 week period in 2019 to compare to 2020
- 60% must still go to payroll
- There are some new uses of funds including PPE, sneeze guards and software
- New organizations allowed including 501(c)6, and news groups
- Accommodations and food services can get 3.5x monthly average payroll.
- Other industries remain at 2.5x average monthly payroll.
- Still have head count requirements and safe harbors
Tuesday January 19th banks will be able to take applications:
- A 1st Draw is available to businesses who did not get a PPP loan in 2020.
- A 2nd draw of PPP funding is for businesses must have exhausted their first round funding and show gross receipts reduction of 25% in one quarter of 2020.
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There are different application requirements for the two types. Visit your bank's website for their application and requirements.
EIDL Advance Funding
If a business had PPP and EIDL funding in 2020, and their PPP forgiveness was reduced by their EIDL Advance, this will be reversed. They are still working out the process as to how this will happen.
EIDL Portal - Open until 12/31/21 - No second round is available.
- extended 1/1/21 through 6/30/21
- Now for 70% of wages/employee for 1st $10,000 per employee per quarter
- Must show a 20% reduction from prior year.
SBA Debt Relief - 7a, 504 and Microloans - SBA will extend their loan payment program.
This is a new program that will be direct from the SBA; details are coming soon.
Applies to theaters, movie theaters, concert halls, museums, zoos etc.
Will start with the hardest hit
- 1st round (1st 14 days) for those with only 10% of prior year gross receipts and <50 employees
- 2nd round (2nd 14 days) for those with only 30% of prior year gross receipts and <50 employees
- Future rounds (after 28 days) will allow for higher revenues
