FINANCIAL SUPPORT FOR BUSINESSES
Paycheck Protection Flexibility Act (PPP) Resources and Forgiveness
In March of 2021, the American Rescue Plan Act provided additional relief for the nation’s small businesses and hard-hit industries for programs the SBA is currently administering and adds new efforts, including:
- $7.25 billion additional for the Paycheck Protection Program (PPP), including to expand eligibility to additional nonprofits and digital news services
- Additional funds are allocated for the Shuttered Venue Operators Grant (SVOG) program, and now allows businesses to apply for both a PPP loan after Dec. 27, 2020, and the SVOG. Apply for the SVOG here.
- $15 billion additional for Targeted Economic Injury Disaster Loan Advance (EIDL) payments, including NEW $5 billion for Supplemental Targeted EIDL Advance payments for those hardest hit
- NEW: $28.6 billion for the Restaurant Revitalization Fund for industry-focused grants. Click here for the Guide to the Restaurant Revitalization Fund from Senator Schumer’s office. For more information on the program, click here to see the guide, including eligibility, provided by the National Restaurant Association.
- NEW: $100 million to establish a Community Navigator pilot program; grants will go to eligible organizations supporting efforts to improve access to COVID–19 pandemic assistance programs and resources.
SBA’s current relief efforts can be found at www.sba.gov/coronavirusrelief, and more details about these program updates and new efforts the SBA will administer in the coming weeks will be located there as well.
At the end of 2020, Congress passed several changes to the Paycheck Protection Program (PPP) and created a “Second Draw” PPP for small businesses who have exhausted their initial loan. Additional changes impact eligibility for initial PPP loans, the loan forgiveness process, and the tax treatment of PPP loans. Click here for a list of 7a Providers to apply for the PPP. Click here for more information on First Draw and Second Draw PPP.
Congress also made updates and changes to other programs – including Economic Injury Disaster Loans (EIDL Program), the Employee Retention Tax Credit, a Shuttered Venue Operators Grant program, and SBA loan programs –that will benefit small businesses. For details on all of these financial resources, please visit the U.S. Chamber of Commerce Guide to Small Business COVID-19 Emergency Loans and the Small Business Administration (SBA).
To receive PPP loan forgiveness, a borrower must complete and submit the Loan Forgiveness Application (SBA Form 3508, 3508EZ, or Lender equivalent) to its Lender. A borrower may submit a Loan Forgiveness Application before the end of the 8-week or 24-week covered period, provided that the borrower has used all of the loan proceeds for which the borrower is requesting forgiveness and the borrower’s loan forgiveness application accounts for any salary reductions in excess of 25 percent for the full covered period. The Lender of record must review the Loan Forgiveness Application in accordance with the requirements of Part III.2.a. of IFR #15 on SBA Loan Review Procedures and Related Borrower and Lender Responsibilities.
Economic Injury Disaster Loan (EIDL)
Small business owners, including agricultural businesses, and nonprofit organizations can apply for an Economic Injury Disaster Loan. The EIDL program is designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue due to coronavirus (COVID-19).
For more information or to apply, click here.
Targeted EIDL Advance
The Targeted EIDL Advance provides businesses located in low-income communities with additional funds to ensure small business continuity, adaptation, and resiliency.
Advance funds of up to $10,000 will be available to applicants located in low-income communities who previously received an EIDL Advance for less than $10,000, or those who applied but received no funds due to lack of available program funding.
Applicants do not need to take any action at this time. The SBA will reach out directly to those who qualify. SBA will first reach out to EIDL applications that already received a partial EIDL Advance (between $1,000 – $9,000). Applicants will be contacted directly by SBA via email in the coming weeks with instructions to determine eligibility and submit documentation.
All communications from SBA will be sent from an official government email with an @sba.gov ending. Please do not send sensitive information via email to any address that does not end in @sba.gov.
Applicants may qualify if they:
- Are located in a low-income community. The definition of a “low-income community” is defined in section 45D(e) of the Internal Revenue Code. Note that the applicant must be located in a low-income community in order to qualify. Additional details on how SBA will identify low-income communities will be available soon on our Coronavirus Relief Options page; AND
- Can demonstrate more than 30% reduction in revenue during an 8-week period beginning on March 2, 2020, or later. If an applicant meets the low-income community criteria, they will be asked to provide gross monthly revenue (all forms of combined monthly earnings received, such as profits or salaries) to confirm the 30% reduction.
Next, SBA will reach out to those who applied for EIDL assistance on or before December 27, 2020, but did not receive an EIDL Advance due to lack of program funding. These applicants will receive an email from SBA with instructions to determine eligibility and submit documentation. Applicants may qualify for a Targeted EIDL Advance if they meet the above criteria (low-income location and reduction in revenue) AND:
- Have 300 or fewer employees. Business entities normally eligible for the EIDL program are eligible, including sole proprietors, independent contractors, and private, nonprofit organizations. Agricultural enterprises are not eligible.
All applicants may be asked to provide an IRS Form 4506-Tto allow SBA to request tax return information on the applicant’s behalf.
Please do not submit duplicate COVID-19 EIDL applications. Only prior applicants will be considered for the Targeted EIDL Advance.
SBA will reach out to you if you qualify!
Employee Retention Tax Credit (ERTC)
The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted December 27, 2020, amended and extended the Employee Retention Credit (and the availability of certain advance payments of the tax credits) under section 2301 of the CARES Act.
For the most current information on this tax credit, please click here.
Restaurant Revitalization Fund
This new program consists of $28.6 billion in the Restaurant Revitalization Fund for industry-focused grants. Click here for the Guide to the Restaurant Revitalization Fund from Senator Schumer’s office. For more information on the program, click here to see the guide, including eligibility, provided by the National Restaurant Association.
This information will be updated when the program is officially launched by the SBA.
Shuttered Venue Operators Grant
The Shuttered Venue Operators (SVO) Grant program was established by The Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, signed into law on December 27, 2020. The program includes $15 billion in grants to shuttered venues, to be administered by the Small Business Administration’s Office of Disaster Assistance.
Eligible applicants may qualify for SVO Grants equal to 45% of their gross earned revenue, with the maximum amount available for a single grant award of $10 million. $2 billion is reserved for eligible applications with up to 50 full-time employees.
Eligible entities include:
- Live venue operators or promoters
- Theatrical producers
- Live performing arts organization operators
- Relevant museum operators, zoos and aquariums who meet specific criteria
- Motion picture theater operators
- Talent representatives, and
- Each business entity owned by an eligible entity that also meets the eligibility requirements
To view the webinar video on the Shuttered Venues Grant, click here.
REDEC Local Business Relief Program
Small business with at least 1 employee in addition to the owner, and up to 50 employees are eligible to apply for relief of $2,500 to $15,000 in Chemung County. Funds are to be repaid over 30 months with no interest (0%), with no payments required for the first 6 months. There is no cost to apply. Applicants must have been in business in March 2020 when the State’s PAUSE Act was implemented, demonstrate how they have been negatively impacted by the resulting economic crisis, and identify how the relief funds will be utilized to reopen their business operations and reemploy workers.
Please note, this program has been extended indefinitely beyond the original October 31, 2020 deadline.
For additional information contact REDEC at (607) 962-3021 or Info@redec.us
NY Forward Loan Fund
When the NYFLF launched in May, the federal Small Business Administration had just issued rules regarding companies’ eligibility for federal assistance. The goal of the NYFLF was to help New York-based small businesses that did not receive PPP or EIDL funding with flexible working capital to reopen and adapt to post-COVID needs.
Effective immediately, small businesses and non-profits that received a PPP loan of $500,000 or less or EIDL loans of $150,000 or less can be eligible for a NYFLF loan:
An Eligible Small Business must:
- Employ *50* or fewer full-time equivalent (FTE) employees;
- Have gross revenues of less than *$5 million* per year;
- Must not have received a U.S. Small Business Administration Paycheck Protection Program of greater than $500,000 or an Economic Injury Disaster Loan (EIDL) for COVID-19 of greater than $150,000;
- Have suffered a direct economic hardship as a result of COVID-19 related social distancing policies and stay-at-home order that have materially impacts their operations;
- Been in business for at least 1 year as of the date of the application; and
- Be located in the State of New York.
For more information and to start your pre-application visit:www.nyloanfund.com.
“Raising the Bar” Restaurant Recovery Fund
Empire State Development (ESD) recently announced the more than $3 million “Raising the Bar” Restaurant Recovery Fund to assist restaurants in New York State during the COVID-19 pandemic. The “Raising the Bar Restaurant Recovery Fund” will help eligible restaurants adjust their operations to the impacts of COVID-19 and adherence to New York State’s public health and safety measures during the winter months when outdoor dining is limited. Eligible restaurants can receive up to $5,000 to assist with COVID-19 safety measures.
“Raising the Bar” grant funding can be used for COVID-19-related improvements and equipment that will allow the business to comply with social distancing guidelines, expand take-out/delivery operations, or accommodate outdoor dining such as plexiglass barriers/partitions, signage promoting social distancing and hygiene protocols, heaters, heat lamps, weatherization upgrades and insulated delivery bags; improvements that will allow the business to continue operating through the winter months such as filtration system upgrades and food heaters to maintain temperature for to-go orders and purchasing PPE and sanitation supplies necessitated by the pandemic; and COVID-19 related business improvements like patio heaters or contactless technology. Qualifying purchases and expenditures must be from September 1, 2020 onwards to be eligible. Initial round of grants are up to $5,000.
Applications now being accepted through the Grant Portal.
Empire State Digital Initiative
New York State has partnered for a first-in-the-nation program with leading global e-commerce partners–Ritual ONE & PayPal, Shopify, Square, and Clearbanc–to accelerate New York State-based small businesses’ ability to grow their online presence.
The participating digital partners are offering specialized solutions such as education, free resources, marketing support and discounted pricing that are unique to the needs of New York State small business owners, restaurants and food service establishments.
Restart Elmira Small Business Grant Program
These reimbursement grants are for COVID-19 related expense such as buying PPE, creating a new filtration system, investing in space heaters for outdoor dining, etc. The eligibility requirements are that the business must be in the City of Elmira and must have a 2020 gross sales revenue of under 1 million dollars.
Round 2 applications are due Friday, February 5, 2021.
For more information or to apply for this program, please click here.
Paycheck Protection Program– Reopened in 2021.
Relief for Taxpayers
For a complete list of COVID-19 resources, please