Help Is Here: PPP & EIDL Grant/Loan For Businesses

The Small Business Association (​SBA) is currently offering Payroll Protection Program (PPP) loans until May 31, 2021. If the PPP funds are used as intended, it is 100% forgivable. 
 
The SBA is also accepting applications for the Economic Injury Disaster Loan (EIDL), with rates of 3.75% for businesses fixed; 2.75% for nonprofits (fixed); 30-years term and no prepayment penalties or fees.
 
Let’s Talk PPP:
DO NOT wait until the last minute to apply. Most lenders will stop accepting applications a few weeks out, if not already. Apply now! It’s a good idea to get your business professional involved in the application process. Here’re some additional details provided by the SBA that you should be aware of:
 
First Draw - Loan details
PPP is a loan designed to provide a direct incentive for small businesses to keep their workers on payroll. First Draw PPP loans can be used to help fund payroll costs, including benefits, and may also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.
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SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses.

• PPP loans have an interest rate of 1%.
• Loans issued prior to June 5, 2020, have a maturity of two years. Loans issued after June 5, 2020, have a maturity of five years.
• Loan payments will be deferred for borrowers who apply for loan forgiveness until SBA remits the borrower's loan forgiveness amount to the lender. If a borrower does not apply for loan forgiveness, payments are deferred 10 months after the end of the covered period for the borrower’s loan forgiveness (between 8 and 24 weeks).
• No collateral or personal guarantees are required.
• Neither the government nor lenders will charge small businesses any fees.

Who May Qualify (PPP)
The following entities affected by COVID-19 may be eligible:

• Sole proprietors, independent contractors, and self-employed persons
• Any small business concern that meets SBA’s size standards (either the industry size standard or the alternative size standard)
• Any business, 501(c)(3) non-profit organization, 501(c)(19) veterans organization, or tribal business concern (sec. 31(b)(2)(C) of the Small Business Act) with the greater of:
  • 500 employees, or
  • That meets the SBA industry size standard if more than 500
• Any business with a NAICS code that begins with 72 (Accommodations and Food Services) that has more than one physical location and employs less than 500 per location

 
Second Draw - Loan Details
PPP now allows certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP loan with the same general loan terms as their First Draw PPP loan. 

Second Draw PPP loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.
Maximum loan amount and increased assistance for accommodation and food services businesses.

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; and
• Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

For assistance applying for your PPP or EIDL grant/loan, please contact us at (786) 715-6781.