SBA (U.S.) Small Business Administration Resources/Recommendations

by | Jan 14, 2021 | News

SBA (U.S.) Small Business Administration Resources/Recommendations:

  • The new COVID-19 stimulus package (signed into law in December 2020) increased funding for the Paycheck Protection Program (PPP), Economic Injury Disaster Loans (EIDL), and other relief programs.
    • Click here to see a quick guide on PPP and other relief programs.
      • Please note: The Small Business Administration (SBA) has not reopened the EIDL program at this time.
  • The new PPP is open for First Draw applications, for those who did not receive a PPP loan prior to August 8, 2020. Applicants who have received PPP and would like to apply again may do so through their same lender – referred to as a Second Draw application.
  • Second Draw PPP Loans are for eligible small businesses with 300 employees or less, that previously received a First Draw PPP Loan (received PPP in the past) and will use or have used the full amount only for authorized uses. Those applicants will also have to demonstrate at least a 25% reduction in gross receipts* between comparable quarters in 2019 and 2020. The maximum amount of a Second Draw PPP loan is $2 million.

*Gross Receipts are defined by the IRS as “the total amounts the organization received from all sources during its annual accounting period, without subtracting any costs or expenses.”

  • On January 11, certain lenders (Community Development Financial Institutions or CDFI’s) were permitted to start accepting applications from those who have not previously received PPP – referred to as a First Draw application for those who did not receive a PPP loan prior to August 8, 2020.
  • Beginning Friday, January 15, local, regional banks, or credit unions will be able to accept all applicants.
  • On Tuesday, January 19, all participating PPP lenders will be permitted to submit First and Second Draw loan applications to SBA.
  • Business owners interested in applying for PPP for their first or second time, should begin conversations as promptly as possible with a lender/bank/credit union they have a relationship with to begin the process or at minimum understand the timeline in which their institution plans to start processing PPP applications.

 

For a list of YCEA member lenders, please click this link

For a quick rundown on PPP and other programs, click this link.

 

 

  • The PA SBDC will launch a weekly SBA Emergency Loan Webinar series. The free series is hosted every Thursday from January 14 – February 25. The series will cover the process of applying, FAQ’s, eligibility, and other helpful guides. To register for the event please view the informational flyer and click on a date, click here.

If you have additional questions, contact the YCEA team at info@yocostrong.com

 

 

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