With the newest COVID-19 stimulus bill passed and signed into law, new aid options are available for businesses. While the final implementation and guidance from the federal SBA has not been released yet, we know now the broad components of what businesses should expect. For most businesses, the new PPP guidance and loans will be the most significant part of the program. We will continue to update this page with more information about the newest stimulus as we get it.
The biggest change to the PPP is an allowance for businesses to acquire a second loan. Essentially, if your business has continued to suffer in the past months, you may apply again. You also may now deduct some expenses related to that were spent installing safety measures at your business.
Additionally, if you never received an PPP loan the first time around, you may find more that the terms are now better for you to submit an application. We strongly recommend applying. If you’re considering applying for a first or second PPP loan, start talking to your lender now. Funds are limited and you should try to get your application in as quickly as possible.
The Department of Small Business Services has a great run-down of what you need to do, as a business, to access these funds expediently, including documents you should start prepping. Check it out here.
For a full, detailed summary of the new PPP changes, check out this summary.
We also strongly recommend signing up for the Department of Small Business Services’ PPP Newsletter, so you get updates as soon as they come out. Register here.
Economic Injury Disaster Loans (EIDL):
Last year there was a lot of issues, confusion, and changing rules in regards to EIDL, and the new stimulus package addresses many of the problems.
- First, the program has been changed to prioritize applicants in lower-income neighborhoods. It will be open to everybody still, and we don’t know exactly how the prioritization will work.
- One of the biggest issues first time around dealt with the $10,000 cash advance grant, which was ultimately dedicated from your total loan amounts, including PPP. This will be resolved in the coming weeks.
- Another issue with the cash grant was applicants not getting the full $10,000. You will be able to reapply and get the remaining amount you are owed. For example, if you only got $1,000 last year, you will be able to apply for the remaining $9,000.
- We recommend applying for EIDL. There is no obligation to take an offer, payments do not start for one year after you receive the loan, and it is low interest with no repayment penalty. We don’t know what the future of aid looks like, nor how much longer COVID-driven losses will affect businesses, so it’s a good idea to keep your options open.
Expanded Employee Retention Tax Credit:
This was part of the initial stimulus package passed in 2020, but you were forced to choose between taking the tax credit or the PPP. However, you may now take both! The eligibility requirements have also been made much less strict. Most NoHo businesses should be eligible to take advantage of this program and the PPP.
You can claim a tax credit of up to $14,000 per employee in 2021, and retroactively claim $5,000 per employee from 2020. The best part is, through the IRS you may be able to receive this tax credit as a cash advance. For more info on the Expanded Employee Retention Tax Credit, click here.
The appropriate federal agencies have yet to release detailed guidance on other components of the new stimulus package. However, the US Chamber of Commerce has put together a nice run-down of what to expect. If you are interested in learning more about any of the below programs, click here.
- Federal Aid for Women and Minority-Owned Businesses: This is part of the new package deal, but no exact details have been released
- Grants for Shuttered Venue Operators: The guidance has not been released yet, but venues will be able to receive $10 million or 45% of 2019 gross revenue, whichever is less
- SBA Loan Debt Forgiveness
- Tuesday, January 12th at 2:00 PM – Set Your Business Up For Success in 2021 from the Manhattan Chamber of Commerce. Register here.
- Tuesday, January 19th at 2:00 PM – Small Business Updated form the US Chamber of Commerce. RSVP Link not yet available.
- Thursday, January 21st at 2:00 PM – Understanding Federal Small Business Grants from the Queens Chamber of Commerce. Register here.