PPP Loans Re-Open on January 11, 2021

On December 27, 2020, the Federal government enacted the Coronavirus Response and Relief Supplemental Appropriations Act (the “CRRSA”) to supplement the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) that was passed in March 2020. Similar to the CARES Act, the CRRSA provides a wide spectrum of relief measures for individuals and businesses negatively impacted by the COVID-19 pandemic. Sections of the CRRSA which may be of interest to our Neighbors include:

  • Approved $284.45 billion in additional funding for a second round of Paycheck Protection Program (PPP) for small businesses.
  • Adding $20 billion for grants under the SBA’s EIDL program.
  • Authorizing $2 billion for other SBA funding
  • Providing certain tax benefits and relief for individuals

Please see the overviews our team has compiled on the PPP Loan Re-Opening and COVID-19 Relief 2.0: What You Need to Know, for more information.

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Paycheck Protection Program (PPP) Updates

The U.S. Small Business Administration (SBA), in consultation with the U.S. Department of the Treasury, has announced that the Paycheck Protection Program 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.

Key PPP updates include

  • PPP borrowers can set their PPP loans 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.

Click here to read more from the U.S. Small Business Administration.

In addition, to the information above and the resources listed below, visit our Re-Opening Resources page for more helpful information.

  • The deadline to apply for a COVID-19 Economic Injury Disaster Loan has been extended to December 31, 2021. If you are a small businesses, nonprofit organization of any size, or a U.S. agricultural business with 500 or fewer employees that have suffered substantial economic injury as a result of the Coronavirus (COVID-19) pandemic, you can apply for the COVID-19 EIDL. Apply online or click here for more information.
  • On October 30, 2020, the Federal Reserve Board announced it has adjusted terms of the Main Street Lending Program to better target support to smaller business. In particular, the minimum loan size for three Main Street facilities available to for-profit and non-profit borrowers has been reduced from $250,000 to $100,000 and the fees have been adjusted to encourage the provision of these smaller loans. The Board and Department of the Treasury also issued a new frequently asked question clarifying that Paycheck Protection Program loans of up to $2 million may be excluded for purposes of determining the maximum loan size under the Main Street Lending Program, if certain requirements are met, which should also help smaller businesses access Main Street loans. For more information, read the press release here

State Resources

Click here for COVID-19 information listed by state, including available financial resources and state-by-state mandates and closures.

Financial Resources for Restaurants

  • Rally for Restaurants Gift Card Sales: Rally for Restaurants is a grassroots initiative from restaurant technology providers, public and private companies, restaurant owners and workersPaste, and people everywhere coming together to support the restaurant community in their time of need.
  • Restaurant Worker Relief: The Restaurant Opportunities Centers United has compiled a list of national and local relief resources for restaurant workers.

Check out the following for more relief options:

| State Resources | For Restaurants | For Women-Owned Businesses | Additional Financial Assistance

For Women-Owned Businesses

Additional Financial Assistance

  • Many banks and creditors are now offering relief programs to small business owners affected by COVID-19. Check out Forbes' List of Banks Offering Relief to Customers Affected By Coronavirus (COVID-19) and creditor websites such as American Express Financial Hardship and American Express Working Capital.
  • Hello Alice: Offering $10,000 grants being distributed immediately to small business owners impacted by coronavirus, as part of their mission to ensure Business for All. In addition to funding, grant recipients will receive ongoing support from the Hello Alice community.
  • Honeycomb: Helps deliver the working capital that businesses need by offering 45-day payment free periods, 6-month interest-only periods and reducing posting, success and investor fees.
  • Kiva: Offering 0% interest loans, expanding loan eligibility for more businesses in the US, increasing their maximum loan threshold from $10,000 to $15,000 and extending their grace period to up to 6 months for new borrowers.
  • Mainvest: Crowdfunding platform MainVest announced its new Main Street Initiative: a $2,000, zero-interest, 120 day loan for restaurants or other brick and mortars affected by the shutdown. Launch a capital raise on Mainvest and you may be eligible for the zero-interest $2,000 loan.
  • Opportunity Fund: Opportunity Fund, which specializes in money lending to small businesses owned by women, immigrants and people of color, is collaborating with investors and nonprofits to put together a coronavirus relief fund that will provide grants and low-interest rate loans.
  • The Small Business Relief Initiative: The Small Business Relief Initiative was started by GoFundMe to help small businesses that have been affected by the COVID-19 pandemic and empower their communities to rally behind them. GoFundMe has partnered with Yelp and Intuit QuickBooks to provide small business owners with the financial support and resources needed to continue running their businesses during and after the coronavirus crisis.

Updated 2/23/2021

*Please note that we do not certify as to the availability of any of these resources to you or as to whether the information presented is accurate or current. Nothing herein shall be construed as legal, tax or other advice.