COVID-19 SMALL BUSINESS GUIDANCE & LOAN RESOURCES - SBA

SMALL BUSINESS ADMINISTRATION


location_on
  • 6501 Sylvan Road
    Citrus Heights, Sacramento
local_phone
  • Fax
    916-735-1719
  • Business Line
    916-735-1700

Small Business Administration Coronavirus resources--------------------------------------
COVID-19 Small Business Guidance & Loan Resourceshttps://www.sba.gov

Paycheck Protection Program
The PPP 2.0 loan application process opens for all borrowers on January 19th, and will run through March 31, 2021. Similar to the PPP in 2020, PPP 2.0 will require borrowers to work through a lending partner (bank or financial institution) approved by the Small Business Administration, and loans are forgivable if borrowers meet the loan forgiveness requirements. There are also a number of new provisions and requirements in PPP 2.0.
There are two avenues for accessing funds: First Draw Loans and Second Draw Loans:

First Draw Loans
  • Open to organizations that did not receive a PPP loan in 2020, or that did not receive forgiveness by 12/27/20 for a 2020 PPP loan, and either returned or did not accept a portion of that loan.
  • Small businesses and nonprofits with 500 or fewer employees are eligible as well as tribes, self-employed individuals, and independent contractors
Second Draw Loans
  • For organizations that received a PPP loan in 2020 and have used or will use the full loan amount for authorized expenses.
  • Have 300 or fewer employees
  • Can show a 25% or more decrease in gross revenue between comparable quarters in 2019 and 2020
For most borrowers, the maximum Second Draw loan amount is 2.5 times the average monthly payroll costs for either 2019 or 2020.

The new PPP 2.0 includes special set-aside funds (First Draw more than $15 billion, Second Draw more than $25 billion) for borrowers with 10 or fewer employees or for loans $250,000 or less for borrowers in low- or moderate-income neighborhoods.

Application forms
There are different application forms depending on your eligibility:Both types of loans are forgivable if, within the 8- to 24-week period after the loan is received, the organization:
  • maintains employee and compensation levels
  • spends the funds on payroll (at least 60% of total) and other eligible expenses – also note: payroll costs are the primary factor in determining your PPP loan amount)
Funds from both loan types can be spent on:
  • payroll costs, including benefits
  • mortgage interest, rent, utilities
  • worker protection costs related to COVID-19
  • certain other operations expenses
Note to arts nonprofits:
Nonprofits that received a PPP in 2020 can apply for the new federal Shuttered Venue Operators Grant Program (aka Save Our Stages), if they are eligible, but cannot receive both a Second Draw PPP loan and a Shuttered Venue Operators grant.