Pandemic Relief Programs
There are a couple of pandemic relief programs that you need to be aware of. You may have received emails from the SBA or your funding bank making you aware of these programs already. You may not qualify for either but please make sure to review the details to confirm.
Targeted EIDL Advance
This program started on February 1 and there is a ticking clock. This is an add-on to the original EDIL Advance program that so many of you received. Remember originally it was supposed to be a $10,000 grant and then they changed it to be $1,000 for each employee? This new part seems to be a way to make it the whole $10,000. So if you had received $2,000 last year you could potentially get the other $8,000. If you got $8,000 you would get $2,000. If you qualify. The first thing to check is if you’re eligible.
This is the language from the attached form:
Who is eligible for the new Targeted EIDL Advance? Businesses that have 300 or fewer employees, are located in federally identified low-income communities and can demonstrate a reduction in revenue of more than 30 percent during an 8- week period beginning on March 2, 2020 or later. This includes small business entities normally eligible for the SBA EIDL program, including non-farm businesses and corporations, sole proprietors, independent contractors, and private nonprofit organizations. If you believe your business/organization is eligible then please read over the entire form HERE.
PPP Round 2
Who may qualify?
A borrower is generally eligible for a Second Draw PPP Loan if the borrower: previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses; has no more than 300 employees; can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020. If you believe you qualify you should read HERE from the SBA and check with your funding bank.
Because the Small Business Administration (SBA) is still accepting new PPP applications from qualified lenders, the processing of all forgiveness applications from earlier rounds of funding has been temporarily paused. We expect it to resume later in March, and we will inform you as soon as things change.
The deadline for forgiveness on the initial round of loans is August 2021, so there is plenty of time to file. If you have already submitted your forgiveness application, there's no need to do anything at this time.