Have questions about the alphabet soup of pandemic-related government relief programs in the CARES Act?
There’s the EIDL, the EIDL grants, the PPP, the second- round PPP, and PPP forgiveness, and new SBA guidance about these programs is coming out all the time. Want to know about the Employee Retention Tax Credit, the Shuttered Vendor Operations Grant (not yet open, but coming), as well as additional provisions about the SBA 7(a) and other loans? For all of this, Florida SBDC at FIU has you covered.
On Growbiz we brought you a rundown of major changes in the new round of PPP forgivebale loans. You can read that post here.
Florida Florida SBDC at FIU also held a webinar on this topic this week. Consultants went through all the changes and new guidelines you need to know about the PPP, as well as the EIDL and other relief programs included in CARES Act funding. In addition, they answered a number of questions.
You can view it here:
Here are a few other highlights and tips given:
- For PPP loan forgiveness, make sure you have all your documentation in order. The form is simpler but you need to be organized and complete. Florida sbdc at FIU will be doing a follow-up webinar specifically on PPP loan forgiveness.
- Any SBA loan at any time can be randomly audited. Be sure you are using the proceeds appropriately.
- The EIDL (Economic Injury Disaster Loan) Program) has reopened, and goes until Dec 31, 2021 or until capital runs out. Terms are 3.75% for a 30 year term. This is a loan, not a grant.
- The targeted EIDL advance –up to $10,000 grants for businesses in low-income areas – is back. You must have documentation to show you had 30% reduction in revenues because of the pandemic. Other criteria apply. The SBA is also following up with people who applied last year and did not get the full $10,000.
- For the PPP, the deadline is March 31 or when funding runs out. Terms for loan forgiveness have been expanded, and expenses that would count toward forgiveness now include Covid safety expenses, group insurance and more.
- For the so-called second-draw PPP, loans will be for up to a maximum of $s million, not $10 million. It might make the process easier to go to the same lender you worked with for your previous PPP loan.
- With all these new options, small businesses need to sit down and make an assessment on what is right for their business. Create a game plan. Talk to your SBDC consultant or other trusted advisors.