3/19/21 UPDATE: Federal/ Small Business Administration (SBA) Financial Assistance Programs Available
The U.S. Senate Committee on Small Business and Entrepreneurship has prepared a Small Business Owner’s Guide to the CARES Act on all of the forthcoming federal resources. SBA has also established a dedicated page of Coronavirus (COVID-19): Small Business Guidance & Loan Resources for all current and pending assistance pertaining to economic relief during the current crisis. The IRS has also created a tool to help businesses identify COVID -19 Tax Relief options.
New Jersey has also compiled information regarding other federal competitive grant opportunities, some of which are open to businesses. The Small Business Administration is administering the following COVID-19 relief programs.
New Jersey businesses can speak with counselors from the NJ Small Business Development Centers for assistance with federal program applications. Counselors, who are available at no charge to businesses, can provide technical assistance for the PPP and EIDL programs.
Paycheck Protection Program (PPP)
UPDATE 3/17/2021: The Paycheck Protection Program (PPP) provides loans to help businesses keep their workforce employed during the Coronavirus (COVID-19) crisis. Borrowers may also be eligible for PPP loan forgiveness. The SBA is currently offering PPP loans until March 31, 2021.
There are two loan types:
First Draw PPP Loans: If you have not received a PPP loan before, First Draw PPP Loans are available to you.
Second Draw PPP Loans: If you have previously received a PPP loan, certain businesses are eligible for a Second Draw PPP Loan.
For the 2020 Tax Season, Paycheck Protection Program Loans will be tax-exempt at the state level and expenses will be tax deductible.
More information and loan forgiveness applications are available at: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program
Economic Injury Disaster Loans (EIDLs)
UPDATE 3/17/2021: EIDL loan provides economic relief to small businesses and nonprofit organizations that are currently experiencing a temporary loss of revenue. Applications can be accessed via the SBA’s COVID-19 relief webpage. While Economic Injury Disaster loans (EIDL) are still available, SBA is no longer giving out EIDL advances, but $5 billion has been set aside for Supplemental Targeted EIDL Advance payments. The new deadline is December 31, 2021.
All New Jersey counties are now approved for federal disaster assistance, making New Jersey businesses eligible to apply for Economic Injury Disaster Loans (EIDLs). To see whether you might qualify for this program, use the NJ COVID-19 Business Support Eligibility Wizard.
Applicants may apply online, receive additional disaster assistance information, and download applications at covid19relief.sba.gov.
Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email firstname.lastname@example.org for more information on SBA disaster assistance. Individuals who are deaf or hard-of-hearing may call (800) 877-8339. Shuttered Venue Operators (SVO) 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. Applications are slated to go live on April 8, 2021 Visit the program application page to sign up for updates.
Prior to the official SVOG application opening, the SBA will host a national informational webinar to highlight the application process for potential eligible entities from 2:30 to 4 p.m. ET on Tuesday, March 30, 2021. Those interested in participating can register here. 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
Live performing arts organization operators
Relevant museum operators, zoos and aquariums who meet specific criteria
Motion picture theater operators
Grant amounts will reflect either of the following instances: For an eligible entity in operation on January 1, 2019, grants will be for an amount equal to 45% of their 2019 gross earned revenue OR $10 million, whichever is less. For an eligible entity that began operation after January 1, 2019, grants will be for the average monthly gross earned revenue for each full month you were in operation during 2019 multiplied by six (6) OR $10 million, whichever is less. Applicants should view the applicable video tutorials to prepare for the application opening: Video tutorials Shuttered Venue Operators Grant Overview SAM.gov Entity Registration Training Eligibility for Live Venue Operators or Promoters Eligibility for Talent Representatives Eligibility for Museum Operators Eligibility for Motion Picture Theatre Operators Express Bridge Loan Pilot Program
This program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loan or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan. If a small business has an urgent need for cash while waiting for decision and disbursement on an Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan of up to $25,000.
The American Rescue Plan Act’s Small Business Assistance and Support The American Rescue Plan Act provides additional relief for the nation’s small businesses and hard-hit industries for programs the SBA is currently administering and adds new efforts, including:
$28.6 billion for the Restaurant Revitalization Fund for industry-focused grants
$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.
Additional funding was made available to the Paycheck Protection Program, Shuttered Venue Operators Grant, and Targeted Economic Injury Disaster Loan Advance.
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.
Source: SBA Disaster Assistance in Response to the Coronavirus
READ MORE: https://business.nj.gov/covid/federal-or-sba-financial-assistance-programs