Updates on SBA’s PPP, EIDL, and Shuttered Venue Operators Grant programs

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Paycheck Protection Program deadline extended 

The Paycheck Protection Program (PPP) is a loan designed to provide a direct incentive for small businesses to keep their workers on payroll. Borrowers may be eligible for PPP loan forgiveness.

SBA is currently offering PPP loans until May 31, 2021. President Biden announced program changes to make access to PPP loans more equitable.

1. Find a lender:

2. Identify a loan:

  • First Draw PPP loans: If you have not received a PPP loan before, First Draw PPP loans are available to you.
  • Second Draw PPP loans: If you have previously received a PPP loan, certain businesses are eligible for a Second Draw PPP loan.

Source: https://www.sba.gov/funding-programs/loans/covid-19-relief-options/paycheck-protection-program

PPP Forgiveness Update 

Guidance & Forms: PPP Loan Forgiveness (sba.gov)

  • Interim Final Rules on Forgiveness
  • Forgiveness Forms and Instructions
  • Frequently Asked Questions on Forgiveness

SBA will no longer deduct EIDL Advances from forgiveness payments remitted to PPP lenders.

For Borrowers with a PPP of $150,000 or Less, Streamlined Forgiveness  Application Now Available-Form 3508S

Note:  Borrowers should work with their PPP lenders on forgiveness.

Source: https://www.sba.gov/funding-programs/loans/covid-19-relief-options/paycheck-protection-program/ppp-loan-forgiveness

COVID-19 Economic Injury Disaster Loan (EIDL) program limits increased

The U.S. Small Business Administration is increasing the maximum amount small businesses and non-profit organizations can borrow through its COVID-19 Economic Injury Disaster Loan (EIDL) program. Starting the week of April 6, 2021, the SBA is raising the loan limit for the COVID-19 EIDL program from 6-months of economic injury with a maximum loan amount of $150,000 to up to 24-months of economic injury with a maximum loan amount of $500,000.

“More than 3.7 million businesses employing more than 20 million people have found financial relief through SBA’s Economic Injury Disaster Loans, which provide low-interest emergency working capital to help save their businesses. However, the pandemic has lasted longer than expected, and they need larger loans. Many have called on SBA to remove the $150,000 cap. We are here to help our small businesses and that is why I’m proud to more than triple the amount of funding they can access,” said SBA Administrator Isabella Casillas Guzman.

Source: https://www.sba.gov/article/2021/mar/24/sba-increase-lending-limit-covid-19-economic-injury-disaster-loans

 

SVOG Application Portal Opens on April 8

The Shuttered Venue Operators (SVO) Grant program was established by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, signed into law on December 27, 2020. The program includes $15 billion in grants to shuttered venues, to be administered by the SBA’s Office of Disaster Assistance.

Eligible applicants may qualify for SVO Grants equal to 45% of their gross earned revenue, with the maximum amount available for a single grant award of $10 million. $2 billion is reserved for eligible applications with up to 50 full-time employees.

Guidance: Shuttered Venue Operators Grant (sba.gov)

Video Tutorials:

Find additional information about COVID Relief Programs at https://www.artsactionfund.org/COVID19Resources