Vermont Business Magazine The Consolidated Appropriations Act, 2021 (the “CAA” or new CARES Act), signed into US law on December 27, 2020, provides $900 billion in new COVID-19 relief funding. It includes several provisions related to individuals, businesses and nonprofit organizations in Vermont’s creative sector. Read on for summaries of some of the key components of the bill as well as related resources.
Save Our Stages (SOS) Grants
The CAA includes a new $15 billion grant program called Save Our Stages ("SOS Grants") through which the US Small Business Administration will provide aid to struggling live venue operators and related businesses. The grants will offer a critical lifeline for the nation’s performing arts venues, movie theaters and museums. Read more about the program and eligibility.
While Save Our Stages has not yet opened, organizations and businesses who may be eligible are encouraged to begin preparations.
To that end, the Vermont Arts Council is hosting an online session about the SOS Grants from 1-2 p.m., Friday, Jan. 15, 2021. Darcy Carter and Susan Mazza, the director and deputy director of the Vermont District Office of US Small Business Administration, will share information and answer questions.
**Register for the Vermont Arts Council's Save Our Stages Online Informational Session**
After registering, you will receive a confirmation email containing information about how to join the meeting. Unable to attend? Register anyway and we will send you a link to view the recording.
Paycheck Protection Program
The CAA bill authorized new rounds and additional funding for the Paycheck Protection Program (PPP), which opens starting this week for new borrowers and certain existing PPP borrowers. Loans under $150,000 will be forgiven via a simple one-page form. Key PPP updates include:
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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;
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PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
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The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, direct marketing organizations, among other types of organizations;
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The PPP provides greater flexibility for seasonal employees;
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Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; and
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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:
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Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
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Has no more than 300 employees; and
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Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
The Agency of Commerce and Community Development hosted a webinar for Vermont’s businesses on Jan. 6 about the updates to PPP and the Families First Coronavirus Response Act (FFCRA). The Agency’s leadership team was joined by the Vermont Department of Labor, the Vermont Bankers Association, the Small Business Administration's Vermont District Office and Thomas Lauzon, C.P.A., to help businesses navigate and understand the updates to these programs. Read more information including a link to the archived webinar recording.
Pandemic Unemployment Benefits
The CAA also extended many of the unemployment programs first authorized through the CARES Act in March of 2020, including relief for self-employed, freelancers or independent contractors. Read a summary of the changes from the Vermont Department of Labor and a helpful explanation about the current benefits in Vermont from Vermont Legal Aid.
Source: Vermont Arts Council 1.11.2021
