COVID-19 Relief Updates: PPP changes and small business grants
This week, the Pace SBDC is bringing you updates on key COVID-19 funding options available for small businesses. See below for information on important changes to the Paycheck Protection Program (PPP), how to prepare yourself for the Shuttered Venue Operators Grant (SVOG) and how to apply for a new private support grant by KKR.
The Biden administration has announced additional program changes to the Small Business Administration’s (SBA) coronavirus relief programs to ensure equity. From February 24 to March 10, 2021, the SBA will only offer Paycheck Protection Program (PPP) loans to businesses and nonprofits with fewer than 20 employees. This will ensure that lenders and community partners have more time to work on the applications of the smallest businesses.
The SBA also announced additional revisions to expand PPP access to more, underserved small businesses. The following changes will be implemented:
Revised PPP funding formula to allow sole proprietors, independent contractors, and self-employed individuals to receive more financial support
Eliminate restrictions on PPP access for small business owners with prior non-fraud felony convictions
Eliminate PPP access restrictions on small business owners who have struggled to make student loan payments by eliminating student loan debt delinquency as a disqualifier to applying for PPP
Ensure access for non-citizen small business owners who are lawful U.S. residents by clarifying that they may use Individual Taxpayer Identification Number (ITIN) to apply for the PPP.
Beginning in early March, Schedule C filers will be able to calculate their maximum PPP loan amount using the gross income on line 7 of IRS Form 1040 Schedule C rather than line 31.
To read more about President Biden's changes to the PPP funding, visit the SBA’s website.
If you have questions about Paycheck Protection Program eligibility or otherwise need assistance, the Pace SBDC team is here to help. Make an appointment for a no-cost, 1:1 advisory session today by emailing sbdc@pace.edu or visiting our website.
The Shuttered Venue Operators Grant (SVOG) offers grants up to 45% of selected small business’ gross earned annual revenue, with the maximum amount of $10 million. To see if you are eligible, please visit the Pace SBDC’s SVOG blogpost for more information.
While the SVOG application platform is not live yet, entities who meet the requirements should prepare to apply by registering for a DUNS number to then register in the System for Award Management (SAM.gov).
Other steps to prepare after registering in SAM:
Gather documents that demonstrate number of employees and monthly revenues to calculate average number of qualifying employees over the prior 12 months
Determine the extent of gross earned revenue loss you experienced between 2019 and 2020.
Compile floor plans, contract copies and other evidence needed to apply for an SVOG
Please review the SBA's FAQ document for guidelines defined to date, including that “if an entity applied and was approved for a PPP loan prior to Dec. 27, 2020, it is eligible to apply for an SVOG.”
KKR has launched Small Business Builders Fund in partnership with Hello Alice to provide COVID-19 recovery grants of up to $10,000 to selected small businesses. To be eligible, a business must have between 5 to 50 employees, less than $7 million in annual revenue, demonstrated need for support, a strong plan for moving forward, and be in good standing with the IRS or local regulatory body. Priority is given to businesses operating in underrepresented groups and/or providing important community services. Deadline for this round is April 7, 2021.
For more information on this program and other private support grants, check out the Pace SBDC’s grants page.
Check out our coronavirus resources page for additional information and contact a Pace SBDC Business Advisor to meet 1:1 and learn more about your business’ relief options.