Keeping YOU informed!
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It is our goal to share accurate and timely information with our members during this time as you all work to push forward in your businesses. With that in mind, here are a few updates on the Phase 4 COVID relief legislation that was passed by Congress in late December. The Paycheck Protect Program and EIDL program officially reopened Monday, 1/11/2021, with some changes and additions. We have outlined those below for you. Unfortunately, many other pieces of the legislation are still being finalized so programs are not yet open for applications, but we expect more details shortly.
Paycheck Protection Program
SBA Presentation Here
The PPP is being released with a phased in approach for applications of $284 Billion in PPP forgivable loans. The program will first be open to “Community Financial Institutions” (CFIs) that serve women and minority owned businesses. The program will open to all lenders a few days after – but the SBA has not specified a date.
The goal of restarting the program is to provide additional assistance to small businesses that may need it in the continuing midst of the COVID-19 pandemic. The First Draw program opened Monday (1/11/2021). The Second Draw program is set to open Wednesday (1/13/2021). If you are interested in this program, check with your lender if you received a PPP loan previously to determine when they may be accepting applications.
First Draw PPP Program Maximum loan is $10,000,000. Interest rate 1% Payback 5 years.
This is only available for those businesses who have NOT received a PPP loan already. Form 2483 – Paycheck Protection Program Borrower Application Form
Second Draw PPP Program (last day to apply is 3-31-2021) Maximum loan is $2,000,000 Interest rate 1% Payback 5 years.
This loan is available for those that received a PPP loan already and have already spent all of it or will have spent it prior to receiving a second loan. Form 2483-SD – PPP Second Draw Borrower Application Form. Review the application to see the certifications that must sign off on.
More information as well as a list of participating lenders can be found on the Treasury’s website here: https://home.treasury.gov/policy-issues/cares/assistance-for-small-businesses
Economic Injury Disaster Loan Program
The EIDL portal through the SBA is officially reopened. These low-interest loans can be used on a variety of business-related expenses. Learn more and apply here: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-disaster-loans
The CARES Act Provides Assistance to Small Businesses