Federal Assistance for COVID-19 Impacts

Updated Monday, April 26, 9:15 a.m.

UPDATE: The Shuttered Venue Operators Grant application portal reopened Monday, April 26 - CLICK HERE to view the application portal.

Resources:

• Shuttered Venue Operators Grants Frequently Asked Questions
• Eligibility requirements
• Preliminary application checklist
• Cross program eligibility on SBA coronavirus relief options
• VIDEO TUTORIAL: Shuttered Venue Operators Grant Overview

Those who have suffered the greatest economic loss will be the first applications processed under the following schedule:

On January 20, 2021, SBA updated the proposed plan for issuing Shuttered Venue Operators Grants during the first and second priority periods. To clarify, priority awardees will not need to satisfy the small employer set-aside. During the first 59 days of opening the SVO Grants, SBA will reserve no less than $2 billion of program funding for grants to entities that have no more than 50 employees.

The Shuttered Venue Operators (SVO) Grant program was signed into law on December 27, 2020. The program includes $15 billion in grants to shuttered venues, to be administered by the Small Business Administration’s Office of Disaster Assistance.

Eligible applicants may qualify for SVO Grants equal to 45% of their gross earned revenue, with the maximum amount available for a single grant award of $10 million. $2 billion is reserved for eligible applications with up to 50 full-time employees.

Who can apply? Eligible entities include:

• Live venue operators or promoters
• Theatrical producers
• Live performing arts organization operators
• Relevant museum operators, zoos and aquariums who meet specific criteria
• Motion picture theater operators
• Talent representatives, and
• Each business entity owned by an eligible entity that also meets the eligibility requirements

Other requirements of note:

• Must have been in operation as of Feb. 29, 2020
• Venue or promoter must not have received a PPP loan on or after Dec. 27, 2020

How much will I be awarded? Awards will be either for:

• An eligible entity that was in operation on Jan. 1, 2019, the lesser of an amount equal to 45% of their 2019 gross earned revenue OR $10 Million.
• An eligible entity that began operation after Jan. 1, 2019, the lesser of the average monthly gross revenue for each full month you were in operation during 2019 multiplied by 6 OR $10 Million.

How can I apply? The SBA is in the process of setting up the grant program and is not yet accepting applications. Small businesses (up to 50 employees) who have suffered the greatest economic loss will be the first applications processed under several priority schedules, linked here.

What can I use the funds for? Funds may be used for specific expenses, which include:

• Payroll costs
• Rent payments
• Utility payments
• Scheduled mortgage payments (not including prepayment of principal)
• Scheduled debt payments (not including prepayment of principal) on any indebtedness incurred in the ordinary course of business prior to 02-15-20)
• Worker protection expenditures
• Payments to independent contractors (not to exceed $100K in annual compensation per contractor)
• Other ordinary and necessary business expenses, including maintenance costs
• Administrative costs (incl. fees and licensing)
• State and local taxes and fees
• Operating leases in effect as of 02-15-20
• Insurance payments
• Advertising, production transportation, and capital expenditures related to producing a theatrical or live performing arts production. (May not be primary use of funds.)

Grantees may not use award funds to:

• Buy real estate
• Make payments on loans originated after 02-15-20
• Make investments or loans
• Make contributions or other payments to, or on behalf of, political parties, political committees, or candidates for election
• Any other use prohibited by the Administrator

Information courtesy of the U.S. Small Business Administration

Updated Tuesday, April 19, 2021 - 11:45 a.m.

In the federal COVID-19 relief bill passed in December 2020, $20 billion in additional funding was allocated to the Economic Injury Disaster Advance Grant (EIDL) Program. If eligible, a business or non-profit that submits a viable application could be approved for a loan of up to $2 million. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.

We encourage businesses to contact their banker or finance professional for information on how best to proceed in their own individual situation. Visit the SBA's coronavirus website to learn more about these and other relief options.

NOTE: If you previously applied for an EIDL advance and not receive the full amount you qualified for, you are now eligible to reapply for the difference between what you received and what you qualified for. Applicants should follow these instructions when requesting a reevaluation:

• Send an email to TargetedAdvanceReevaluation@sba.gov
• Use the subject line “Reevaluation Request for [insert your 10-digit application number]”
• In the body of the email, include identifying information for the application such as application number, business name, business address, business owner name(s) and phone number
• Important: Include an explanation and any documentation that addresses the reason for the decline, if available. SBA will contact applicants if additional documentation is required to complete the review.

Resources:

• U.S. Chamber of Commerce Economic Injury Disaster Loan program flyer
• Small Business Administration Economic Injury Disaster Loans webpage

How to Apply

Applicants will be able to apply online, receive additional disaster assistance information and download applications at https://disasterloan.sba.gov/ela. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance.

Loans from the U.S. Small Business Administration are administered through local banks and lenders. The SBA keeps an up-to-date list of available lenders on its website. Click here to visit the SBA site and see if your lender is on the list.

SBA Customer Service Representatives will be available to answer questions about SBA’s Economic Injury Disaster Loan program and explain the application process.

• Eligibility for Economic Injury Disaster Loans is based on the financial impact of the Coronavirus (COVID-19). The interest rate is 3.75 percent for small businesses. The interest rate for private non-profit organizations is 2.75 percent.
• Record-keeping is important right now. You will need to document the financial impact of this disaster on your business.
• SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years and are available to entities without the financial ability to offset the adverse impact without hardship.
• FOR ALL APPLICATIONS THE FOLLOWING ITEMS MUST BE SUBMITTED:
  • Loan application (SBA Form 5), completed and signed (this is electronic/online in the portal)
  • Tax Information Authorization (IRS Form 4506-T), completed and signed by each applicant, each principal owning 20 percent or more of the applicant business, each general partner or managing member; and, for any owner who has more than 50 percent ownership in an affiliate business. Affiliates include, but are not limited to, business parents, subsidiaries, and/or other businesses with common ownership or management
  • Complete copies, including all schedules, of the most recently filed Federal income tax returns for the applicant business; an explanation if not available
  • Personal Financial Statement (SBA Form 413) completed, signed, and dated by the applicant, each principal owning 20 percent or more of the applicant business, and each general partner or managing member
  • Schedule of Liabilities listing all fixed debts (SBA Form 2202 may be used)

All of these forms are available in the Disaster Loan Application Portal. Download the SBA information sheet on this program by clicking here.

Updated Monday, January 11, 2021 - 9:30 a.m.

Click here to view a helpful flowchart from BKD CPAs & Advisors on the Employee Retention Tax Credit.

The Employee Retention Credit under the CARES Act encourages businesses to keep employees on their payroll. The refundable tax credit is 70% of up to $10,000 in qualified wages per employee per calendar quarter in 2021 paid by an eligible employer from December 31, 2020 through June 31, 2021.

Is my company eligible? As of December 2020, employers with 500 or fewer employees are able to claim the ERTC if they experienced either:

1. A full or partial suspension of the operation of their trade or business during this period because of governmental orders limiting commerce, travel or group meetings due to COVID-19, or
2. A decline in gross receipts in a calendar quarter in 2021 where the gross receipts of that calendar quarter are less than 80% of the gross receipts in the same calendar quarter in 2019 (to be eligible based on a decline in gross receipts in 2020 the gross receipts were required to be less than 50%).

Employers that did not exist in 2019 can use the corresponding quarter in 2020 to measure the decline in their gross receipts. In addition, for the first and second calendar quarters in 2021, employers may elect in a manner provided in future IRS guidance to measure the decline in their gross receipts using the immediately preceding calendar quarter (i.e., the fourth calendar quarter of 2020 and first calendar quarter of 2021, respectively) compared to the same calendar quarter in 2019.

Employers who received a First or Second Draw PPP loan are eligible to apply for the ERTC; however, PPP funds and the ERTC can not be used to cover the same expenses.

How much is this tax credit worth? For wages paid after March 12, 2020, and before January 1, 2021, the ERTC can be applied to 50% of qualifying wages up to $10,000, meaning a maximum of $5,000 per employee.

For wages paid after January 1, 2021, and before July 1, 2021, the ERTC can be applied to 70% of qualifying wages of up to $10,000 per quarter, meaning a maximum of $14,000 per employee through June 30.

How do I receive this credit? This refundable tax credit can be applied against an employer’s portion of payroll taxes, which are reported quarterly.

Eligible employers can report wages and related health insurance costs for each quarter on their quarterly employment tax returns via a Form 941 beginning with the second quarter of 2020. Additionally, if a company’s employment tax deposits do not cover the credit cost, that employer can receive a payment in advance from the IRS by submitting a Form 7200. This means potentially having the ability to get the tax credit back early in the form of a check from the IRS.

Companies that believe they are eligible for the ERTC should talk to their tax preparers and payroll companies immediately to see if they can take advantage of 2020 and 2021 credits. The Internal Revenue Service may also issue further guidance regarding the ERTC, so please contact the IRS if you have questions.

Resources available:

• Frequently Asked Questions about the Employee Retention Tax Credit (ERTC)
• U.S. Chamber of Commerce Coronavirus Employee Retention Tax Credit Guide (as of 1/7/2021)

Information courtesy of the U.S. Chamber of Commerce. 

Updated Thursday, June 3, 2021 1:30 p.m.

Applications for the Paycheck Protection Program are closed. 

Resources:

• SBA Overview of PPP First Draw Loans
• Updated PPP guidance from the U.S. Chamber of Commerce (as of 12/22/2020)
• FAQs for Lender and Borrowers (as of 3/12/21)
• U.S. Chamber of Commerce Guide to PPP Loan Forgiveness
• SBA Loan Forgiveness information (as of 10/13/2020)
• FAQs about PPP Loan Forgiveness (as of 10-13-2020)
• PPP Loan Forgiveness Form 3508 (as of 1/19/21)

Note: As more businesses are taking advantage of the PPP loans, the Missouri Department of Labor and Industrial Relations’ (DOLIR’s) Division of Employment Security (DES) has provided this guidance on payments made to unemployed workers by their employers.

The Paycheck Protection Program (“PPP”) authorizes forgivable loans to small businesses to pay their employees during the COVID-19 crisis. All loan terms will be the same for everyone.

The loan amounts will be fully forgiven as long as:

• At least 60% of the loan proceeds are used to cover payroll costs. The remaining 40% can be used to cover several eligible expenses, including mortgage interest, rent, utility, business operations, supplier costs and more over the covered 8 to 24-week period after the loan is made, chosen by the borrower.
• Employee and compensation levels are maintained.

Payroll costs are capped at $100,000 on an annualized basis for each employee. In order to qualify for maximum loan forgiveness, not more than 40% of the forgiven amount may be for non-payroll costs.

Loan payments will be deferred for 6 months.

When can I apply? With the new funding added to the PPP program on March 11, small businesses and sole proprietorships, independent contractors and self-employed individuals, and most 501c3 organizations can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.

Where can I apply? You can apply through any existing SBA lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating. You can also  use the SBA's Lender Match to connect with a lender or visit www.sba.gov for a map of SBA lenders.

Who can apply? All businesses – including nonprofits, veterans organizations, Tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors – with 500 or fewer employees can apply. Businesses in certain industries can have more than 500 employees if they meet applicable SBA employee-based size standards for those industries (click HERE for additional detail).

For this program, the SBA’s affiliation standards are waived for small businesses (1) in the hotel and food services industries (click HERE for NAICS code 72 to confirm); or (2) that are franchises in the SBA’s Franchise Directory (click HERE to check); or (3) that receive financial assistance from small business investment companies licensed by the SBA. Additional guidance may be released as appropriate.

What do I need to apply? You will need to complete the Paycheck Protection Program loan application and submit the application with the required documentation to an approved lender that is available to process your application by March 31, 2021. Click HERE for the application.

What other documents will I need to include in my application? You will need to provide your lender with payroll documentation. The SBA has provided this guide to help applicants in calculate first draw PPP loan amounts and know what documentation to provide by businesses type.

Do I need to first look for other funds before applying to this program? No. The SBA is waiving the usual requirement that you try to obtain some or all of the loan funds from other sources (i.e., waiving the Credit Elsewhere requirement).

How long will this program last? The program will remain open either through March 31, 2021 or until funding is exhausted, whichever occurs first.

What can I use these loans for? You should use the proceeds from these loans on your:

• Payroll costs, including benefits;
• Interest on mortgage obligations, incurred before February 15, 2020;
• Rent, under lease agreements in force before February 15, 2020;
• Utilities, for which service began before February 15;
• Supplier goods in which the purchase order was in place prior to loan approval;
• Business operation costs;
• Worker protection expenses; and
• Costs related to property damage or looting due to public disturbances in 2020 that are not covered by insurance or other compensation.

What counts as payroll costs? Payroll costs include:

• Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee);
• Employee benefits including costs for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit;
• State and local taxes assessed on compensation; and
• For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee.

Does the PPP cover paid sick leave? Yes, the PPP covers payroll costs, which include employee benefits such as costs for parental, family, medical, or sick leave. However, it is worth noting that the CARES Act expressly excludes qualified sick and family leave wages for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act (FFCRA) (Public Law 116–127). Learn more about the FFCRA’s Paid Sick Leave Refundable Credit online.

How large can my loan be? Loans can be for up to two months of your average monthly payroll costs from the last year plus an additional 25% of that amount. That amount is subject to a $2 million cap. If you are a seasonal or new business, you will use different applicable time periods for your calculation. Payroll costs will be capped at $100,000 annualized for each employee. Use this guide to calculate your maximum loan amount for first draw PPP loans.

How many loans can I take out under this program? If you have exhausted your first PPP loan, meet certain employee and revenue loss requirements, and did not receive loan forgiveness by December 27, 2020, you could be able to apply for a second loan of up to $2 million. More information is included in the Paycheck Protection Program Loans (Second Draw) section of this webpage.

How much of my loan will be forgiven? First Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:

• Employee and compensation levels are maintained
• The loan proceeds are spent on payroll costs and other eligible expenses; and
• At least 60 percent of the proceeds are spent on payroll costs

When can I request loan forgiveness? A borrower can apply for forgiveness once all loan proceeds for which the borrower is requesting forgiveness have been used. Borrowers can apply for forgiveness any time up to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred, and borrowers will begin making loan payments to their PPP lender.

How can I apply for loan forgiveness?

1. Contact your PPP Lender and complete the correct form:

Your Lender can provide you with either the SBA Form 3508, SBA Form 3508EZ, SBA Form 3508S, or a Lender equivalent.

The 3508EZ and the 3508S are shortened versions of the application for borrowers who meet specific requirements. Your Lender can provide further guidance on how to submit the application.

2. Compile your documentation:

Payroll (provide documentation for all payroll periods that overlapped with the Covered Period or the Alternative Payroll Covered Period):

• Bank account statements or third-party payroll service provider reports documenting the amount of cash compensation paid to employees
• Tax forms (or equivalent third-party payroll service provider reports) for the periods that overlap with the Covered Period or the Alternative Payroll Covered Period:
  • Payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941); and
  • State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state
• Payment receipts, cancelled checks, or account statements documenting the amount of any employer contributions to employee health insurance and retirement plans that the borrower included in the forgiveness amount

Non-payroll (for expenses that were incurred or paid during the covered period and showing that obligations or services existed prior to February 15, 2020):

• Business mortgage interest payments: Copy of lender amortization schedule and receipts verifying payments, or lender account statements
• Business rent or lease payments: Copy of current lease agreement and receipts or cancelled checks verifying eligible payments
• Business utility payments: Copies of invoices and receipts, cancelled checks or account statements

This list of documents required to be submitted to the Lender is not all-inclusive.

3. Submit the forgiveness form and documentation to your PPP Lender.

4. Continue to communicate with your Lender throughout the process.

If SBA undertakes a loan review of your loan, your Lender will notify you of the review and the SBA loan review decision. You have the right to appeal certain SBA loan review decisions. Your Lender is responsible for notifying you of the forgiveness amount paid by SBA and the date on which your first payment will be due, if applicable.

Please Note: Recent legislation has eliminated the original requirement to deduct the amount of EIDL Advance you may have received from your PPP loan forgiveness. Additional guidance and updated forms are forthcoming.

What is my interest rate? 1.00% fixed rate.

Is my loan taxable? The Paycheck Protection Program loan itself is tax-exempt and is not considered taxable income. Business expenses paid for with PPP funds can be written off.

When do I need to start paying interest on my loan? Under the changes to the law signed on June 5, all payments are deferred until (a) whenever the amount of loan forgiveness is remitted to the lender or (b) 10 months after the applicable forgiveness covered period if a borrower does not apply for forgiveness during that 10-month period.

When is my loan due? In five years.

Can I pay my loan earlier than five years? Yes. There are no prepayment penalties or fees.

Do I need to pledge any collateral for these loans? No. No collateral is required.

Do I need to personally guarantee this loan? No. There is no personal guarantee requirement. ***However, if the proceeds are used for fraudulent purposes, the U.S. government will pursue criminal charges against you.***

What do I need to certify? As part of your application, you need to certify in good faith that:

• Current economic uncertainty makes the loan necessary to support your ongoing operations.
• The funds will be used to retain workers and maintain payroll or to make mortgage, lease, and utility payments.
• You have not and will not receive another loan under this program.
• You will provide to the lender documentation that verifies the number of full-time equivalent employees on payroll and the dollar amounts of payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities for the eight weeks after getting this loan.
• Loan forgiveness will be provided for the sum of documented payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities. In order to qualify for maximum loan forgiveness, no more than 40% of the forgiven amount may be for non-payroll costs.
• All the information you provided in your application and in all supporting documents and forms is true and accurate. Knowingly making a false statement to get a loan under this program is punishable by law.
• You acknowledge that the lender will calculate the eligible loan amount using the tax documents you submitted. You affirm that the tax documents are identical to those you submitted to the IRS. And you also understand, acknowledge, and agree that the lender can share the tax information with the SBA’s authorized representatives, including authorized representatives of the SBA Office of Inspector General, for the purpose of compliance with SBA Loan Program Requirements and all SBA reviews.

Information courtesy of the U.S. Treasury Department and the U.S. Small Business Administration

Updated Thursday, June 3, 2021 - 1:30 p.m.

Applications for the Paycheck Protection Program are closed. 

Resources:

• SBA Overview of PPP Second Draw Loans
• FAQs for Lenders and Borrowers (as of 3/12/21)
• Updated PPP guidance from the U.S. Chamber of Commerce (as of 12/22/2020)
• Second Draw Paycheck Protection Program loan application
• U.S. Chamber of Commerce Guide to PPP Loan Forgiveness
• Second Draw PPP Loan forgiveness terms

Entities who have exhausted their first PPP loan, meet certain employee and revenue loss requirements, and did not receive loan forgiveness by December 27, 2020, could be able to apply for a second loan of up to $2 million. The loan amounts will be fully forgiven as long as:

• At least 60% of the loan proceeds are used to cover payroll costs. The remaining 40% can be used to cover several eligible expenses, including mortgage interest, rent, utility, business operations, supplier costs and more over the covered 8 to 24-week period after the loan is made, chosen by the borrower.
• Employee and compensation levels are maintained.

Payroll costs are capped at $100,000 on an annualized basis for each employee. In order to qualify for maximum loan forgiveness, not more than 40% of the forgiven amount may be for non-payroll costs.

Loan payments will be deferred for 6 months.

Who can apply? 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

Entities with significant ties to China are ineligible for a second draw loan.

Where can I apply? Lender Match can help connect you with a lender. You can also view all lenders near you on a map. All Second Draw PPP Loans will have the same terms regardless of lender or borrower. 

If you wish to begin preparing your application, you can download the following PPP borrower application form to see the information that will be requested from you when you apply with a lender. Click HERE for the second draw borrower application.

How large can my loan be? The maximum loan amount is the average monthly payroll costs for the entity during the 12 months prior to the loan or, at the election of the borrower, 2019 multiplied by 2.5 (or 3.5 for employers in the accommodation and food service industry). Seasonal employers utilize average monthly payroll costs for a 12-week period between February 15, 2019 and February 15, 2020.

Use this guide provided by the SBA to calculate revenue reduction and maximum loan amounts, including what documentation to provide.

For this program, the SBA’s affiliation standards are waived for small businesses (1) in the hotel and food services industries (click HERE for NAICS code 72 to confirm); or (2) that are franchises in the SBA’s Franchise Directory (click HERE to check); or (3) that receive financial assistance from small business investment companies licensed by the SBA. Additional guidance may be released as appropriate.

How long will this program last? The program will remain open either through March 31, 2021 or until funding is exhausted, whichever occurs first.

What can I use these loans for? You should use the proceeds from these loans on your:

• Payroll costs, including benefits;
• Interest on mortgage obligations, incurred before February 15, 2020;
• Rent, under lease agreements in force before February 15, 2020;
• Utilities, for which service began before February 15;
• Supplier goods in which the purchase order was in place prior to loan approval;
• Business operation costs;
• Worker protection expenses; and
• Costs related to property damage or looting due to public disturbances in 2020 that are not covered by insurance or other compensation.

What counts as payroll costs? Payroll costs include:

• Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee);
• Employee benefits including costs for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit;
• State and local taxes assessed on compensation; and
• For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee.

Does the PPP cover paid sick leave? Yes, the PPP covers payroll costs, which include employee benefits such as costs for parental, family, medical, or sick leave. However, it is worth noting that the CARES Act expressly excludes qualified sick and family leave wages for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act (FFCRA) (Public Law 116–127). Learn more about the FFCRA’s Paid Sick Leave Refundable Credit online.

How much of my loan will be forgiven? You will owe money when your loan is due if you use the loan amount for anything other than payroll costs or eligible expenses outlined above over the chosen covered period after getting the loan. In order to qualify for maximum loan forgiveness, no more than 40% of the forgiven amount may be for non-payroll costs.

You will also owe money if you do not maintain your staff and payroll. Like original PPP loans, the amount of loan forgiveness can be reduced if the borrower has (1) reduced the number of employees or (2) employee salaries by more than 25%. However, the same safe harbors that apply to original PPP loans apply to Second Draw loans. Learn more about these Safe Harbors in our Guide for PPP Loan Forgiveness.

The amount of loan that can be forgiven is the lesser of:

1. Costs incurred or expenditures made between the date of the origination of the loan and ending on a date of your choosing that is between 8 and 24 weeks after origination for: (a) payroll costs, (b) qualifying mortgage interest or rent obligations, (c) covered utility costs, (d) covered operations costs, (e) covered property damage, (f) covered supplier costs, and (g) covered worker protection expenditures; or
2. Payroll costs for the same period divided by 0.60 (this serves as a cap on the total loan forgiveness to ensure that at least 60% of the total amount forgiven is for payroll costs).

Set-Asides: $25 billion is set aside for employers with 10 or fewer employees or for loans less than $250,000 for entities located in a low-income neighborhood.

How can I apply for loan forgiveness?

1. Contact your PPP Lender and complete the correct form:

Your Lender can provide you with either the SBA Form 3508, SBA Form 3508EZ, SBA Form 3508S, or a Lender equivalent.

The 3508EZ and the 3508S are shortened versions of the application for borrowers who meet specific requirements. Your Lender can provide further guidance on how to submit the application.

2. Compile your documentation:

Payroll (provide documentation for all payroll periods that overlapped with the Covered Period or the Alternative Payroll Covered Period):

• Bank account statements or third-party payroll service provider reports documenting the amount of cash compensation paid to employees
• Tax forms (or equivalent third-party payroll service provider reports) for the periods that overlap with the Covered Period or the Alternative Payroll Covered Period:
  • Payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941); and
  • State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state
• Payment receipts, cancelled checks, or account statements documenting the amount of any employer contributions to employee health insurance and retirement plans that the borrower included in the forgiveness amount

Non-payroll (for expenses that were incurred or paid during the covered period and showing that obligations or services existed prior to February 15, 2020):

• Business mortgage interest payments: Copy of lender amortization schedule and receipts verifying payments, or lender account statements
• Business rent or lease payments: Copy of current lease agreement and receipts or cancelled checks verifying eligible payments
• Business utility payments: Copies of invoices and receipts, cancelled checks or account statements

This list of documents required to be submitted to the Lender is not all-inclusive.

3. Submit the forgiveness form and documentation to your PPP Lender.

4. Continue to communicate with your Lender throughout the process.

If SBA undertakes a loan review of your loan, your Lender will notify you of the review and the SBA loan review decision. You have the right to appeal certain SBA loan review decisions. Your Lender is responsible for notifying you of the forgiveness amount paid by SBA and the date on which your first payment will be due, if applicable.

What is my interest rate? 1.00% fixed rate.

Is my loan taxable? The Paycheck Protection Program loan itself is tax-exempt and is not considered taxable income. Business expenses paid for with PPP funds can be written off.

When do I need to start paying interest on my loan? Under the changes to the law signed on June 5, all payments are deferred until (a) whenever the amount of loan forgiveness is remitted to the lender or (b) 10 months after the applicable forgiveness covered period if a borrower does not apply for forgiveness during that 10-month period.

When is my loan due? In five years.

Can I pay my loan earlier than five years? Yes. There are no prepayment penalties or fees.

Do I need to pledge any collateral for these loans? No. No collateral is required.

Do I need to personally guarantee this loan? No. There is no personal guarantee requirement. ***However, if the proceeds are used for fraudulent purposes, the U.S. government will pursue criminal charges against you.***

What do I need to certify? As part of your application, you need to certify in good faith that:

• Current economic uncertainty makes the loan necessary to support your ongoing operations.
• The funds will be used to retain workers and maintain payroll or to make mortgage, lease, and utility payments.
• You have not and will not receive another loan under this program.
• You will provide to the lender documentation that verifies the number of full-time equivalent employees on payroll and the dollar amounts of payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities for the eight weeks after getting this loan.
• Loan forgiveness will be provided for the sum of documented payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities. In order to qualify for maximum loan forgiveness, no more than 40% of the forgiven amount may be for non-payroll costs.
• All the information you provided in your application and in all supporting documents and forms is true and accurate. Knowingly making a false statement to get a loan under this program is punishable by law.
• You acknowledge that the lender will calculate the eligible loan amount using the tax documents you submitted. You affirm that the tax documents are identical to those you submitted to the IRS. And you also understand, acknowledge, and agree that the lender can share the tax information with the SBA’s authorized representatives, including authorized representatives of the SBA Office of Inspector General, for the purpose of compliance with SBA Loan Program Requirements and all SBA reviews.

Information courtesy of the U.S. Treasury Department

Updated Thursday, June 3, 2021 - 1:30 p.m.

Applications for the Restaurant Revitalization Fund are closed.

The American Rescue Plan Act of 2021, signed into law March 11, 2021, created a new grant program, the Restaurant Revitalization Fund (RRF), to provide restaurants with funding equal to their pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023.

Resources:

• U.S. Small Business Administration Restaurant Revitalization Fund (RRF) Information
  • Program Guide (as of 4/17/21)
  • Sample Application (SBA Form 3172)
• National Restaurant Association Restaurant Revitalization Fund FAQ sheet
• The National Law Review Restaurant Revitalization Fund Overview (as of 3/15/21)
• U.S. Chamber of Commerce guide to applying for the Restaurant Revitalization Fund (3/24/21)

Who is eligible? Eligible entities include restaurants, food stands, food trucks, caterers, saloons, inns, taverns, bars, lounges, brewpubs, tasting rooms, taprooms, licensed facilities or premises of a beverage alcohol producer where the public may taste, sample, or purchase products, or other similar place of business in which the public or patrons assemble for the primary purpose of being served food or drink. Entities must not own more than 20 units and can not be a publicly traded company, as of March 13, 2020.

What if I have already utilized other SBA COVID-19 relief options? The SBA has several relief options for organizations, including programs like the Paycheck Protection Program, Shuttered Venue Operators Grant, Economic Injury Disaster Loans, and more. Read more here about different cross-program eligibility considerations related to each program and how that may impact your organization.

When can I apply? The official application launch date of the RRF will be announced shortly. Ahead of the application launch and over the next two weeks, the SBA will establish a seven-day pilot period for the RRF application portal and conduct extensive outreach and training on how to apply, application requirements and where to apply. Participants in this pilot will be randomly selected from existing PPP borrowers in priority groups for RRF and will not receive funds until the application portal is open to the public.  

Following the pilot, the application portal will be opened to the public. For the first 21 days that the program is open, the SBA will prioritize reviewing applications from small businesses owned by women, veterans, and socially and economically disadvantaged individuals. Following the 21-day period, all eligible applicants are encouraged to submit applications. 

Where can I apply? Applicants can apply through SBA-recognized Point of Sale Restaurant Partners or directly via SBA in a forthcoming online application portal.

What do I need to apply? Registration with SAM.gov is not required. DUNS or CAGE identifiers are also not required.

If you would like to prepare your application, view the sample application form. You will be able to complete this form online. Please do not submit RRF forms to SBA at this time.

Additional documentation required:

• Verification for Tax Information: IRS Form 4506-T, completed and signed by Applicant. Completion of this form digitally on the SBA platform will satisfy this requirement.
• Gross Receipts Documentation: Any of the following documents demonstrating gross receipts and, if applicable, eligible expenses
  • Business tax returns (IRS Form 1120 or IRS 1120-S)
  • IRS Forms 1040 Schedule C; IRS Forms 1040 Schedule F
  • For a partnership: partnership’s IRS Form 1065 (including K-1s)
  • Bank statements
  • Externally or internally prepared financial statements such as Income Statements or Profit and Loss Statements
  • Point of sale report(s), including IRS Form 1099-K

For applicants that are a brewpub, tasting room, taproom, brewery, winery, distillery, or bakery:

• Documents evidencing that onsite sales to the public comprise at least 33.00% of gross receipts for 2019, which may include Tax and Trade Bureau (TTB) Forms 5130.9 or TTB. For businesses who opened in 2020, the Applicant’s original business model should have contemplated at least 33.00% of gross receipts in onsite sales to the public.

For applicants that are an inn:

• Documents evidencing that onsite sales of food and beverage to the public comprise at least 33.00% of gross receipts for 2019. For businesses who opened in 2020, the Applicant’s original business model should have contemplated at least 33.00% of gross receipts in onsite sales to the public.

How much funding can I expect to receive? The SBA may provide a total grant amount of up to $5 million per location, not to exceed $10 million total for the applicant and any affiliated businesses. The minimum award is $1,000. The amount of the grant must not exceed the "pandemic-related" revenue loss of the applicant, which generally means the applicant's 2019 gross receipts minus its 2020 gross receipts. Grants will be based on a modified formula for applicants that were not in operation for all of 2019 or who opened for business after January 1, 2020. More specifics on payment calculations are outlined below:

Calculation 1: for applicants in operation prior to or on January 1, 2019:

• 2019 gross receipts minus 2020 gross receipts minus PPP loan amounts

Calculation 2: for applicants that began operations partially through 2019:

• (Average 2019 monthly gross receipts x 12) minus 2020 gross receipts minus PPP loan amounts

Calculation 3: for applicants that began operations on or between January 1, 2020 and March 10, 2021 and applicants not yet opened but have incurred eligible expenses:

• Amount spent on eligible expenses between February 15, 2020 and March 11,2021 minus 2020 gross receipts minus PPP loan amounts

For those entities who began operations partially through 2019, you may elect (at your own discretion) to use either calculation 2 or calculation 3.

For the purposes of this program, gross receipts does not include:

• Amounts received from Paycheck Protection Program (PPP) loans (First Draw or Second Draw)
• Amounts received from Economic Injury Disaster Loans (EIDL)
• Advances on EIDL (EIDL Advance and Targeted EIDL Advance)
• State and local grants (via CARES Act or otherwise)
• SBA Section 1112 payments

What can I use these funds for? Grant funds can be used to cover eligible expenses incurred from February 15, 2020 to December 31, 2021, or a date determined by the SBA. Eligible expenses include:

• Business payroll costs (including sick leave)
• Payments on any business mortgage obligation
• Business rent payments (note: this does not include prepayment of rent)
• Business debt service (both principal and interest; note: this does not include any prepayment of principal or interest)
• Business utility payments
• Business maintenance expenses
• Construction of outdoor seating
• Business supplies (including protective equipment and cleaning materials)
• Business food and beverage expenses (including raw materials)
• Covered supplier costs
• Business operating expenses

Do I have pay this funding back? Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023 and the business does not permanently close before the end of the covered period.

Information courtesy of the U.S. Small Business Administration