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January 11, 2021
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Hello Business Owner,
(Resending with updated information from Jan. 8 newsflash)
Several new opportunities for business financial assistance are starting the week of Jan. 11, 2021. Included is a second round of PPP (for those who previously received PPP and those who didn’t) and a new reimbursement grant for restaurants and bars. Please review the information below and apply for those programs that match your needs.
SBA Paycheck Protection Program (PPP)
$284 billion was just allocated for another round of the Paycheck Protection Program (PPP), a forgivable business loan offered through the federal government’s Small Business Administration (SBA) that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis. You can apply for up to $2 million or 2.5 times your monthly payroll, whichever is less. If you are a restaurant or a hotel, you can apply for 3.5 times your monthly payroll up to $2 million.
SBA, in consultation with the U.S. Treasury Department, will open the Paycheck Protection Program loan portal on Monday, January 11, 2021 at 9 am ET. When the PPP loan portal system opens, it will initially accept First Draw PPP loan applications from participating CFIs, which include Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), Certified Development Companies (CDCs), and Microloan Intermediaries.
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll
More information
About loans:
- PPP loans have an interest rate of 1%.
- Loans issued prior to June 5 have a maturity of 2 years. Loans issued after June 5 have a maturity of 5 years.
- Loan payments will be deferred for borrowers who apply for loan forgiveness until SBA remits the borrower's loan forgiveness amount to the lender. If a borrower does not apply for loan forgiveness, payments are deferred 10 months after the end of the covered period for the borrower’s loan forgiveness (either 8 weeks or 24 weeks).
- No collateral or personal guarantees are required.
- Neither the government nor lenders will charge small businesses any fees. SBA will forgive loans if all employee retention criteria are met, and if the funds were used for eligible payroll costs, payments on business mortgage interest payments, rent, or utilities during either the 8- or 24-week period after disbursement. A borrower can apply for forgiveness once it has used all loan proceeds for which the borrower is requesting forgiveness. Borrowers can apply for forgiveness any time up to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred and borrowers will begin making loan payments to their PPP lender.
Prepare your documents:
Each lender may have different requirements but here are the most common and you can begin collecting them.
- Copy of Photo ID for all owners who own 20% of the business or more
- 2019 and 2020 Profit and Loss Statements to show revenue loss during 2020
- 2019 Business Tax Returns
- For partnerships – include IRS Form 1065 and Schedule K-1
- For sole proprietors – include IRS Form 1040 Schedule C
- Articles of Incorporation / Business Organizational Documents
- Payroll Reports with a list of gross wages, paid time off, and taxes assessed for all employees for all 12 months of 2020
- 2020 Employer IRS Documents (including one of the following for all 4 quarters of 2020):
- Form 941: Employer’s Quarterly Federal Tax Return
If you wish to begin preparing your application, you can download the following PPP borrower application forms to see the information that will be requested from you when you apply with a lender:
For your awareness, several local CFI’s have shared information about their programs: NDC NEW YORK: Helping Small Business Grow:
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NDC’s Grow America Fund is a national small business (SBA 7a) lending program designed to catalyze job creation in the communities we serve in New York.
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BOC Capital Opens Inquiry Form for New PPP Loans for Current and First-Time PPP Borrowers
Raising the NYS Bar Restaurant Recovery Fund
In an effort to support small businesses during the COVID-19 pandemic, the Raising the NYS Bar Restaurant Recovery Fund offers approximately $3 million in reimbursement grants for up to $5,000 to eligible businesses. The program is intended to support full-service restaurants – the industry hit hardest by the pandemic – during the winter months when outdoor dining is limited and as restaurants adjust to New York State’s COVID-19 safety restrictions and new mandates.
Restaurants can apply to the Rising the NYS Bar Restaurant Recovery Fund starting Monday, January 11, 2021.
The Raising the NYS Bar Restaurant Recovery Fund is a partnership between New York State, Diageo Wine & Spirits, Southern Glazer Wines & Spirits and The National Development Council (NDC). Grant funding will be managed by The National Development Council (NDC).
To qualify for the program, an establishment must:
Be full-service restaurants (NAICS code 722511), or establishments engaged in providing food services and meals prepared on-premises to patrons who traditionally order and are served while seated (i.e., waiter/waitress service), including on-premises food and drinking establishments licensed through the State Liquor Authority (SLA). Establishments providing take out or grab and go food services due to COVID-19 restrictions are also eligible;
Franchises are not eligible;
- Have no more than $3 million in 2019 revenue;
- Be located in New York State;
- Have been in operation on or before March 1, 2019;
- Certify and demonstrate that they have experienced financial hardship due to COVID-19
- Agree to comply with all applicable New York State and local reopening guidance and COVID-19 health and safety policies, including the New York Forward reopening guidance and Cluster Action Initiative guidance, as well as SLA and DOH regulations.
- Maximum $5,000 grant
- Minority- and Women-Owned Business Enterprises (M/WBEs) are encouraged to apply. More information
This information has been collected from public sources and is subject to change.
Sincerely,
Lisa Davis
Business Ambassador
Ldavis@newrochelleny.com | 914-654-2189
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