Sarasota & Manatee Small Businesses - The PPP Program Has Re-Opened
While more details are expected in the coming weeks, there is now some clarity on a number of important programs. The U.S. Chamber of Commerce has an overview available on its website that you may find helpful. We urge you to connect with the financial professionals who serve your business to learn more about eligibility, applications, and processes for accessing one or more of the small business assistance programs.
The PPP Program Re-Opens
The Small Business Administration has announced that the Paycheck Protection Program (PPP) is reopening for eligible new borrowers and certain potential "second draw” PPP borrowers. This round of PPP continues to support small business employment through job retention funding.
- Only community financial institutions are able to make First Draw PPP Loans beginning on Monday, January 11, and Second Draw PPP Loans on Wednesday, January 13. The PPP will open to all participating lenders shortly thereafter (likely next week – we encourage you to check with your bank/financial institution).
- Other updates for the PPP include:
- Covered loan period can be set to any length between 8 and 24 weeks;
- Loans can cover additional expenses, including operations, property damage costs, supplier costs, and worker protection;
- Eligibility expanded to include 501(c)(6), housing cooperatives, direct marketing organizations, and other types of organizations; and
- Greater flexibility for seasonal employees.
- For more information, including eligibility, application and terms, please use this link.
Employee Retention Tax Credit Expansion
The Employee Retention Tax Credit program has been significantly expanded through the new legislation (beginning on January 1, 2021 and expiring on June 30, 2021). The new credit is 70% on $10,000 in wages per quarter (or a maximum $14,000 per employee through June 30th) for employers who meet eligibility requirements (which have been expanded). Employers can now also receive both the Employee Retention Tax Credit and a PPP loan, just not to cover the same payroll expenses. We encourage you to talk with your organization’s tax professional and monitor the IRS website for coming updates and information on how to claim the credit.
Economic Injury Disaster Loan (EIDL) and Grants
EIDL is a working capital loan to help small businesses meet their ordinary and necessary financial obligations that cannot be met as a result of COVID-19. The new legislation will re-open the $10,000 grant portion of the program for specific, eligible employers. For more information visit the SBA online and note that new information is expected to be released in the coming days.