PPP loan applications available for all lenders starting Wednesday

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PPP loan applications available for all lenders starting Wednesday

Tue, 01/12/2021 - 5:08pm -- tim

Vermont Business Magazine On December 27, 2020, the $900 billion “Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act” (Economic Aid Act) was signed into law along with a $1.4 trillion federal omnibus FY 21 appropriations bill. Community-based lenders were allowed to start processing application Monday and all other lenders may open up applications for new or continuing PPP loans starting Wednesday. This is the update to the $2.1 trillion CARES Act passed in March 2020.

Additionally, Congress passed a veto-override to enact the $740 billion National Defense Authorization Act on December 23, 2020, which includes support for creative arts therapies.

Key PPP updates include:

  • 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;
  • 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. 

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.

The new guidance released includes:

General

  • New SBA Guidelines opening a new First Round of Paycheck Protection Program and Application, Forgivable Loan Applications, Forgiveness, Tax Implications, and no longer need to deduct EIDL Advances! ($147.5 billion)
  • New SBA Guideline creating a Second Draw and Application of PPP loans to current borrowers ($137 billion)
  • Newly replenished EIDL Loan and Advances (not a second draw) – already open to apply now ($20 billion)
  • New Shuttered Live Venue Operators and Talent Representatives available to nonprofit, for-profit, and government owned or operated performing arts venues and museums ($15 billion)
  • New Pandemic Unemployment Assistance for gig workers, W2 employees, and now “mixed earners”
  • New IRS Stimulus Checks of $600 per taxpayer (phasing incrementally out after $75,000 adjusted gross income) and $600 for each of the tax filer’s dependent children 17 years old and younger)
  • New expanded and extended charitable tax deductions for non-itemizers up to $300 per tax filer, instead of $300 per tax return. (ie- married, joint filers can deduct up to $600 now)
  • New retroactive and upcoming NEA and NEH grants that can be awarded for general operating support.
  • New funding for creative arts therapies within the U.S. Department of Defense

ACCD Wednesday Webinar

On Wednesday, January 13th at 3:00pm, ACCD and the Vermont Department of Health's leadership teams will be joined by the Small Business Administration for a webinar and update on the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan programs (EIDL). Dr. Patsy Kelso, the State of Vermont's Epidemiologist for Infectious Diseases, will also be delivering an update on Vermont’s vaccination distribution policy.

Full details and recordings of previous weekly webinars can be found at the ACCD COVID-19 Recovery Resource Center.

Shuttered Venue Operators Grant Program

On Thursday, January 14th at 3:00pm the U.S. Small Business Administrationwill host a webinar to give a preliminary overview of the Shuttered Venue Operators Grant program included in the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act. In total, the Economic Aid Act allocates $15 billion for the Shuttered Venue Operators Grants. The webinar will review grant opportunity for live venues, live performing arts organizations, movie houses and cultural institutions and provide introductory information about who can apply and how organizations can prepare.

Doing Business with the State of Vermont

Vermont businesses are invited to join VT PTAC and the Office of Purchasing & Contracting (OPC) for an in-depth look at how to do business with the State of Vermont on January 13th at 10:30am (participants must register by 9:00am the day of the webinar). This webinar will focus on working specifically with OPC, the division of the Department of Buildings and General Services (BGS) that oversees purchasing and contracting for the State of Vermont via the management of policies and compliance requirements of statutes and applicable administrative bulletins.

Business Economic Survey

A reminder that the Vermont Chamber of Commerce has launched their annual state-wide survey of small- to medium-sized businesses. This year COVID-related business questions have been added that will hopefully result in some valuable insights for policymakers. The survey will remain open until Friday, January 29th.

Business Impact

ACCD wants to hear from all Vermont businesses impacted by the COVID-19 pandemic. Please use the ACCD Business Impact Form to help us continue to assess the full impact as we work toward additional recovery solutions.