Bergman Update on Relief for Small Businesses
Washington, March 30, 2021
Following today’s enactment of the PPP Extension Act of 2021 -- which Rep. Bergman voted to support -- and other recent regulatory actions, Rep. Bergman shared the following update for First District small businesses:
Paycheck Protection Program
NEW: Small businesses across the First District can apply for a PPP loan through May 31, 2021.
• The Paycheck Protection Program (PPP) continues to provide small businesses with the resources they need to maintain their payroll, hire employees who may have been laid off, and cover applicable overhead – following an infusion of $7.25 billion in additional funding for the PPP.
• On March 30, 2021, the bipartisan Paycheck Protection Program Extension Act of 2021 was signed into law by President Biden and extends the previous March 31, 2021 deadline by two months and provides an additional 30 days for the U.S. Small Business Administration (SBA) to process loans submitted prior to the new May 31, 2021 deadline.
• As of Monday, March 29, 2021, there are approximately 50,000 PPP loans experiencing error code issues.
• As of Sunday, March 28, 2021, there is approximately $72 billion remaining in PPP funding.
o PPP data can be found here.
• Frequently Asked Questions for lenders and borrowers can be found here.
• More information on PPP can be found on the Department of the Treasury’s Assistance for Small Business page here.
o First Draw PPP Loans: If you have not received a PPP loan before, First Draw PPP Loans may be available to you.
o Second Draw PPP Loans: If you have previously received a PPP loan, certain businesses may be eligible for a Second Draw PPP Loan.
o PPP Loan Forgiveness: Borrowers may be eligible for loan forgiveness.
COVID-19 Economic Injury Disaster Loans (EIDL)
NEW: On March 24, 2021, the SBA announced they are increasing the maximum amount small businesses and non-profit organizations can borrow through the 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.
• EIDL provides economic relief to small businesses and nonprofit organizations that are currently experiencing a temporary loss of revenue.
• The SBA is currently accepting new Economic Injury Disaster Loan (EIDL) applications from qualified small businesses, including agricultural businesses, and private nonprofit organizations through December 31, 2021.
• On March 21, 2021, the SBA announced an extension of the deferment periods for all disaster loans, including the COVID-19 Economic Injury Disaster Loan (EIDL) program, until 2022.
o All SBA disaster loans made in calendar year 2020, including EIDL, will have a first payment due date extended from 12-months to 24-months from the date of the note.
o All SBA disaster loans made in calendar year 2021, including EIDL, will have a first payment due date extended from 12-months to 18-months from the date of the note.
Targeted EIDL Advance
• The EIDL Advance Grant changes in the December COVID bill are meant to capture the following small businesses and allow certain entities to come back for another round:
o Small businesses that received an EIDL Advance Grant less than the $10,000 can reapply and may receive the difference between what they received and $10,000.
o Employee size no longer determines the size of the EIDL grant.
o Small businesses that applied after funds were exhausted in the summer.
o 300 or fewer employees.
o Demonstrate a 30 percent economic loss.
o Situated in a LMI (low to moderate income) area, see: Mapping tool
• $15 billion in additional funding for Targeted EIDL advance payments, including $5 billion for Supplemental Targeted EIDL Advance payments for those hardest hit will be available.
• Frequently Asked Questions about Targeted EIDL Advance can be found here.
• The SBA is conducting outreach to applicants who qualify.
Shuttered Venue Operators Grant (SVOG)
NEW: The SBA announced they will begin accepting SVOG Applications on April 8, 2021.
• The Shuttered Venue Operators (SVO) Grant program includes over $16 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 percent of their gross earned revenue.
o The maximum amount available for a single grant award is $10 million.
o $2 billion is reserved for eligible applications with up to 50 full-time employees.
• Businesses may apply for both a PPP loan after December 27, 2020 and the SVOG.
• Frequently Asked Questions about the Shuttered Venue Operators Grant program can be found here.
Restaurant Revitalization Fund
• $28.6 billion will be available for the Restaurant Revitalization Fund for industry-focused grants.
• This program has not yet been launched, but the SBA testified during a Senate Small Business Committee hearing that the agency planned to begin a "phased launch" in April.
SBA Debt Relief
• The SBA is providing debt relief to certain existing and new SBA loan borrowers during the COVID-19 pandemic.