Breaking News – SBA Paycheck Protection Program Announce Re-Opening

Paycheck Protection Program will be re-opening for First Draw PPP loans on Monday, January 11th for community financial institutions, such as CDFI’s, and Wednesday January 13th for Second Draw PPP loans. Other lenders will be able to accept applications at some date shortly thereafter.

The U.S. Small Business Administration (SBA), in consultation with the U.S. Treasury Department, announced today that the Paycheck Protection Program (PPP) will re-open the week of January 11 for new borrowers and certain existing PPP borrowers. To promote access to capital, initially only community financial institutions will be able to make First Draw PPP Loans on Monday, January 11, and Second Draw PPP Loans on Wednesday, January 13. The PPP will open to all participating lenders shortly thereafter. Updated PPP guidance outlining Program changes to enhance its effectiveness and accessibility was released on January 6 in accordance with the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act.

This round of the PPP continues to prioritize millions of Americans employed by small businesses by authorizing up to $284 billion toward job retention and certain other expenses through March 31, 2021, and by allowing certain existing PPP borrowers to apply for a Second Draw PPP Loan.

“The historically successful Paycheck Protection Program served as an economic lifeline to millions of small businesses and their employees when they needed it most,” said SBA Administrator Jovita Carranza. “Today’s guidance builds on the success of the program and adapts to the changing needs of small business owners by providing targeted relief and a simpler forgiveness process to ensure their path to recovery.”

“The Paycheck Protection Program has successfully provided 5.2 million loans worth $525 billion to America’s small businesses, supporting more than 51 million jobs,” said Treasury Secretary Steven T. Mnuchin. “This updated guidance enhances the PPP’s targeted relief to small businesses most impacted by COVID-19. We are committed to implementing this round of PPP quickly to continue supporting American small businesses and their workers.”

Key PPP updates include:

PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs;
PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, direct marketing organizations, among other types of organizations;
The PPP provides greater flexibility for seasonal employees;
Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; and
Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.

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.

The new guidance released includes:

PPP Guidance from SBA Administrator Carranza on Accessing Capital for Minority, Underserved, Veteran, and Women-owned Business Concerns;

Interim Final Rule on Paycheck Protection Program as Amended by Economic Aid Act;

Interim Final Rule on Second Draw PPP Loans.

For more information on SBA’s assistance to small businesses, visit sba.gov/ppp or treasury.gov/cares.

Minority, Women-Owned Businesses Get First Bid on New PPP Loans

Community lenders serving minority and women-owned businesses will have exclusive access to a new pot of Paycheck Protection Program loans for at least two days when the next round of money becomes available, according to new rules from the Small Businesses Administration.

The guidance, released late Wednesday, says the SBA will put its focus on ensuring that under-served businesses can tap the latest round of funding, including matching loan inquiries to small lenders, dedicating hours to assisting small PPP participants and getting more community development financial institutions to sign up as PPP lenders.

The guidance seeks to address several criticisms of the first rounds of PPP funding: largely that small, vulnerable businesses were unable to get assistance because larger business claimed the funds before small firms could get to it. The program had previously encouraged banks to give priority to big loans over small ones.

Click HERE to read the full article

Restaurant Recovery Fund

Restaurants can apply to the Restaurant Recovery Fund starting Monday, January 11, 2021.

To be eligible a restaurant must:

Be full-service restaurants (NAICS code 722511), or establishments engaged in providing food services and meals prepared on-premises to patrons who traditionally order and are served while seated (i.e., waiter/waitress service), including on-premises food and drinking establishments licensed through the State Liquor Authority (SLA). Establishments providing take out or grab and go food services due to COVID-19 restrictions are also eligible.
Franchises are not eligible;
Have no more than $3 million in 2019 revenue;
Be located in New York State;
Have been in operation on or before March 1, 2019;
Certify and demonstrate that they have experienced financial hardship due to COVID-19
Agree to comply with all applicable New York State and local reopening guidance and
COVID-19 health and safety policies, including the New York Forward reopening guidance and Cluster Action Initiative guidance, as well as SLA and DOH regulations.

The online grant portal may close temporarily should the number of applications exceed funding availability. If grant funding remains available due to the exclusion of ineligible applications, the online grant portal will be reopened following an announcement by the Empire State Development.

To apply, applicants will need the following required documents:

Current Government-issued photo ID for every owner of 20% or more
2019 Federal Business Tax Returns
2020 Year-to-Date Income Statement
Copy of SLA License
List and proof of eligible reimbursable COVID-19 response related expenses incurred since 9/1/2020 (If a capital expense please include receipts for equipment, labor and/or construction)

The application process opens on Monday January 11 2021

Eligibility, & Application Information Apply Here

New Legislators’ Town Hall

As we continue to deal with the COVID-19 crisis, we will begin 2021 in “virtual mode,” and we will be turning our longstanding premier network event, the 2021 Legislators’ Reception, to a New Legislators’ Town Hall.

DATE: Thursday, January 28

TIME: 2:00 to 3:00 pm

This event will be the first in a series of new legislator forums.

This January there will be a lot of new faces in the State Legislature, with fourteen newly elected Senators and thirty new Assembly members, and we are working to introduce The Business Council to these new legislators.

This is a great opportunity to speak with the individuals responsible for helping New York State recover from the coronavirus pandemic. These new lawmakers will make decisions on how to best address the state’s multiple billion dollar budget deficit and how to help businesses as they attempt to recover from a turbulent 2020.

Biden Taps Isabel Guzman to Lead Small Business Administration

President-elect Joe Biden has chosen Isabel Guzman, a California economic development official, to lead the Small Business Administration, according to people familiar with the matter.

Ms. Guzman was a senior official at the SBA during the Obama administration, serving as deputy chief of staff. In 2019, she became the director of California’s Office of the Small Business Advocate, where she helped implement a grant program for businesses affected by the pandemic.

If confirmed, Ms. Guzman would lead an agency that is best known for its loan programs to provide small firms with capital and has more recently helped businesses affected by the pandemic. Many of the agency’s loan programs rely on partnerships with banks and other financial institutions, which issue the loans and receive an SBA guarantee.

Click HERE to read the full article