60,000 Paycheck Protection Program Loans Approved in First Week

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Utah District Office - January 20, 2021

u s small business administration

60,000 Paycheck Protection Program Loans Approved in First Week

SBA’s dedicated access to community financial institutions helped underserved small businesses

The U.S. Small Business Administration announced that it has approved approximately 60,000 PPP loan applications submitted by nearly 3,000 lenders, for over $5 billion, between the program’s re-opening on Monday, Jan. 11, at 9 a.m. ET through to Sunday, Jan. 17. 

Last week, the PPP provided dedicated access to community financial institutions that specialize in serving underserved communities, including minority- women-, and veteran-owned small businesses from Monday through Thursday, joined Friday by smaller lenders. As of Jan. 19, the Paycheck Protection Program is open to all participating lenders.

"As businesses continue to apply for the PPP in Utah, we should see some of the stress small business owners have endured, lessen. The SBA Utah District Office should have some numbers of how many applications have been submitted and approved soon," said SBA Utah District Director Marla Trollan. 

 “The SBA continues to help small businesses across the nation access vital funds through the Paycheck Protection Program. Data from our first week, which first allowed hundreds of community financial institutions to submit applications, then opened wider to small banks, demonstrate that we have helped tens of thousands of businesses,” said SBA Administrator Jovita Carranza. “The PPP is off to another great start helping our nation’s economy. With PPP re-opening today for all First and Second Draw loan applications, the SBA remains committed to keeping small business workers on payroll and their doors open during this challenging time. Moreover, the SBA over-performed operationally, issuing guidance and rules in advance and in alignment with the new law’s requirements,” Carranza added.

First Draw PPP loans are for those borrowers who have not received a PPP loan before August 8, 2020. The first two PPP rounds open between March and August 2020 were a historic success helping 5.2 million small businesses keep 51 million American workers employed.   Second Draw PPP loans are for eligible small businesses with 300 employees or less and that previously received a First Draw PPP loan. These borrowers will have to use or had used the full amount of their First Draw loan only for authorized uses and demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020. The maximum amount of a Second Draw PPP loan is $2 million.  The Paycheck Protection Program remains open for First and Second Draw PPP loans until March 31, 2021, as set forth in the Economic Aid Act, or until Congressionally-appropriated funding is exhausted.


PPP

Dear Lending Partners –

Paycheck Protection Program Update

SBA, in consultation with the Treasury Department, has recently released additional PPP guidance and resources:  

  1. Interim Final Rule on Loan Forgiveness Requirements and Loan Review Procedures as Amended by Economic Aid Act (Released 1/19/2021)
  2. PPP Loan Forgiveness Application Form 3508 (Revised 1/19/21)
  3. PPP Loan Forgiveness Application Form 3508EZ (Revised 1/19/21)
  4. PPP Loan Forgiveness Application Form 3508S (Revised 1/19/21)
  5. Borrower’s Disclosure of Certain Controlling Interests (Released 1/19/2021)

For more information and updates, visit SBA.gov/PPP or Treasury.gov/CARES 


Paycheck Protection Program Open to All Lenders

The U.S. Small Business Administration, in consultation with the U.S. Treasury Department, has re-opened the Paycheck Protection Program (PPP) loan portal to all participating PPP lenders to submit First and Second Draw loan applications to SBA.

Additional PPP guidance and resources have been made available at:  

Helpful Reminder for This Round of PPP - Make sure the PPP First Draw Loan number is included in the Second Draw PPP Loan application

As part of the Second Draw Borrower application, Applicants must enter the SBA loan number of the First Draw PPP loan (i.e. the loan that was originated in 2020).  SBA loan numbers have the following format to help borrowers identify the SBA loan number of their first PPP loan: XXXXXXXX-XX (i.e. eight numbers followed by a dash and then two more numbers).   PPP lenders should make SBA loan numbers easily accessible to their borrowers.

Last week, SBA granted dedicated PPP access to Community Financial Institutions (CFIs) which include Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), Certified Development Companies (CDCs), and Microloan Intermediaries as part of the agency’s ongoing efforts to reach underserved and minority small businesses.

Friday, SBA continued its emphasis on reaching smaller lenders and businesses by opening to approximately 5,000 more lenders, including community banks, credit unions, and farm credit institutions.  The agency also plans to reserve dedicated service hours for these smaller lenders going forward.

First Draw PPP Loans are for those borrowers who have not received a PPP loan before August 8, 2020. The first round of the PPP, which ran from March to August 2020, was a historic success helping 5.2 million small businesses keep 51 million American workers employed.  

Second Draw PPP Loans are for eligible small businesses with 300 employees or less, that previously received a First Draw PPP Loan and will use or have used the full amount only for authorized uses, and that can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020. The maximum amount of a Second Draw PPP loan is $2 million. 

Updated PPP Lender forms, guidance, and resources are available at www.sba.gov/ppp and www.treasury.gov.

For continued updates business owners and nonprofit organizations should subscribe to the SBA Utah District Office newsletter at www.sba.gov/offices/district/ut/salt-lake-city  and follow on Twitter @SBA_Utah as information will be updated as it changes.

You may contact the Utah District Office at (801) 524-3209 or by email at utahgeneral@sba.gov. You may also contact the Rapid Response Team at coronavirus.utah.gov or by phone at 1 (800) 456-7707.


SBA Proposes Rule to Eliminate Regulations Excluding Faith-Based Organizations from Seven SBA Programs

Public Comments Due by February 18, 2021

The U.S. Small Business Administration invites public comment on a proposed rule designed to remove regulatory provisions that exclude certain faith-based organizations from seven business loan and disaster assistance programs.  These programs include the Intermediary Lending Program (ILP), Business Loan programs (7(a), Microloan and 504 programs), Economic Injury Disaster Loan (EIDL) program, Military Reservist Economic Injury Disaster Loan (MREIDL) program and Immediate Disaster Assistance Program (IDAP). 

Because these provisions exclude otherwise eligible applicants based on their religious status, they violate their constitutionally guaranteed religious liberty rights.  By eliminating the provisions, the proposed rule would ensure that SBA’s programs provide equal treatment for faith-based organizations, which the Constitution requires, and would correspond with the President’s Executive Order Promoting Free Speech and Religious Liberty.

“Today’s proposed rule would remove barriers to SBA loans and disaster assistance that current regulations unfairly impose on faith-based businesses and organizations,” said SBA Administrator Jovita Carranza.  “America’s faith-based small businesses and organizations play a vital role in providing employment opportunities, products, and essential educational, training and youth social services that benefit both our local communities and the overall national economy.  Today’s proposed rule would ensure that these businesses and organizations are not forced to choose between their faith and the SBA financial assistance that they need to continue serving the public and employing our neighbors.”

Public comments on this proposed rule can be submitted on or before February 18, 2021 at www.regulations.gov, using the following RIN number: RIN 3245-AH60.  The public may also comment by mail to Valerie Mills, Executive Operations Officer, Office of General Counsel, U.S. Small Business Administration, 409 Third Street, SW, Washington, DC 20416.   

SBA will post all comments on https://www.regulations.gov.

For more information about SBA’s assistance to faith-based communities, click here.


Paycheck Protection Program Loan Forgiveness Form

Paycheck Protection Program Loan Forgiveness

Paycheck Protection Program (PPP) borrowers may be eligible for loan forgiveness 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.

Click here to learn more


Shuttered Venue Operators Grant Program

Background

The Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act signed into law on December 27, 2020 includes $15 billion in grants to operators of shuttered venues, to be administered by the Small Business Administration’s Office of Disaster Assistance. Of this amount, at least $2 billion is reserved for applicants with up to 50 full-time employees. Grants of up to $10M will be disbursed to eligible applicants in accordance with applicable Uniform Guidance (2 CFR 200) requirements. This guidance explains the rules associated with the use Federal grant funds.

Eligible Entities

  • 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
  • Other requirements of note: Must have been in operation as of Feb. 29, 2020

Shuttered Venue Grant Information


paycheck protection program, PPP

Additional PPP Guidance and Forms

 

The following information is located on www.sba.gov/ppp :

The PPP is intended to provide economic relief to small businesses nationwide adversely impacted by the Coronavirus Disease 2019 (COVID-19). Subsequently, SBA published 23 interim final rules providing additional guidance on the PPP (some of which were jointly issued with the Department of the Treasury) and Treasury published one interim final rule.

The Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (Economic Aid Act) (Pub. L. 116-260) became law Dec. 27, 2021. The Economic Aid Act extends the authority to make PPP loans through March 31, 2021 and revises certain PPP requirements.

For ease of borrower and lender reference, this interim final rule also consolidates the interim final rules (and important guidance) issued to date governing borrower eligibility, lender eligibility, and PPP application and origination requirements for new PPP loans, as well as provides general rules relating to loan increases and loan forgiveness.

Please access the following links for policy guidance on the new round of PPP loans as authorized by the recently passed stimulus bill.

Updated First Draw Forms

Second Draw Forms

Guidance & Resources

SBA Procedural Notice 5000-20074 - Modifications to SBA Forms 3506, 3507, and 750 CA (for purposes of PPP only)

SBA Procedural Notice 5000-20075 - Repeal of EIDL Advance Deduction Requirement for SBA Loan Forgiveness Remittances to PPP Lenders

Reminder:

Per the Economic Aid Act, a Community Financial Institution (CFI) is one of the four types of lenders.

  • Community Financial Development Institution (CDFI)
  • Minority Depository Institution (MDI)
  • Community Development Corporation (CDC)
  • Microlender Intermediary

Correction:

Eligibility has been expanded to include 501(c)(6)s, housing cooperatives, destination marketing organizations, among other types of organizations; not direct marketing organizations as previously stated.

Further information and background is contained lower in this newsletter.

For continued updates business owners and nonprofit organizations should subscribe to the SBA Utah District Office newsletter at www.sba.gov/offices/district/ut/salt-lake-city  and follow on Twitter @SBA_Utah as information will be updated as it changes.

You may contact the Utah District Office at (801) 524-3209 or by email at utahgeneral@sba.gov. You may also contact the Rapid Response Team at coronavirus.utah.gov or by phone at 1 (800) 456-7707.


Eligible Paycheck Protection Program expenses now deductible

The Treasury Department and the Internal Revenue Service issued guidance today allowing deductions for the payments of eligible expenses when such payments would result (or be expected to result) in the forgiveness of a loan (covered loan) under the Paycheck Protection Program (PPP).

Today’s guidance, Revenue Ruling 2021-02, reflects changes to law contained in the COVID-related Tax Relief Act of 2020, enacted as part of the Consolidated Appropriations Act, 2021 (Act), Public Law 116-260, which was signed into law on Dec. 27, 2020.

The COVID-related Tax Relief Act of 2020 amended the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to say that no deduction is denied, no tax attribute is reduced, and no basis increase is denied by reason of the exclusion from gross income of the forgiveness of an eligible recipient’s covered loan. This change applies for taxable years ending after March 27, 2020.

Revenue Ruling 2021-02 obsoletes Notice 2020-32 and Revenue Ruling 2020-27. This obsoleted guidance disallowed deductions for the payment of eligible expenses when the payments resulted (or could be expected to result) in forgiveness of a covered loan.

For more information about this, the COVID-related Tax Relief Act of 2020, and other tax changes, visit IRS.gov.

More Information Here


SBA Disaster Loans

SBA offers Economic Injury Disaster Loans to small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations of any size to help meet working capital needs caused by the disaster. Economic injury assistance is available regardless of whether the business suffered any property damage. The deadline to apply for an SBA economic injury disaster loan is July 27, 2021.

Disaster loans up to $200,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible for up to $40,000 to repair or replace damaged or destroyed personal property.

Interest rates can be as low as 3 percent for businesses, 2.75 percent for private nonprofit organizations and 1.188 percent for homeowners and renters with terms up to 30 years. Loan amounts and terms are set by SBA and are based on each applicant’s financial condition.

Applicants may apply online, receive additional disaster assistance information and download applications at https://disasterloanassistance.sba.gov/. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. Individuals who are deaf or hard‑of‑hearing may call (800) 877-8339. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX  76155.


Training and Events

Virtual Mentoring and Training 

Offices around the country may be closed to the Coronavirus pandemic, but SCORE, Small Business Development Centers, Women’s Business Centers, and Veterans Business Outreach Centers and other resource partners are providing free business mentoring and training by phone, email, and video.

Find an SBA resource partner near you


Join the SBA team: Employment opportunities to support SBA's COVID-19 pandemic response

We're Hiring, Join Our Team

The SBA is hiring temporary employees to assist with disaster relief efforts during these unprecedented times. The positions include:

  • Call Center Customer Service Representative
  • Document Preparation/Legal Review/Loan Closings
  • Loan Processing/Credit Analysis/Mortgage Underwriting
  • Program Support

Apply Today


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Financing Your Business

Free online course from the SBA Learning Center

Assess your financing needs and discover financing options for your business.




UTAH SBA DIRECTORY


Marla Trollan, District Director
marla.trollan@sba.gov, (o) 801-524-3209 (c) 385-218-1995

John Gygi, Deputy District Director

john.gygi@sba.gov, (o) 801-524-3209 (c) 801-889-6170

Karl Wernick, Lender Relations Specialist
karl.wernick@sba.gov, (o) 801-524-3209 (c) 385-355-5815

Don MacMillan, Lender Relations Specialist
donald.macmillan@sba.gov, (o) 801-524-3209 (c) 385-429-8627

Melinda Workman, Economic Development Specialist

melinda.workman@sba.gov, (o) 801-524-3209 (c) 385-266-1853

Rachel Bennett, Economic Development Specialist

rachel.bennett@sba.gov, (o) 801-524-3209 (c) 385-355-5677

Cody Neville, Business Opportunity Specialist

cody.neville@sba.gov, (o) 801-524-3209 (c) 801-828-0796

Siobhan Carlile, Public Affairs Specialist
siobhan.carlile@sba.gov, (o) 801-524-3209 (c) 706-267-1145

George Janes, Outreach and Marketing Specialist, Office of Disaster Assistance

george.janes@sba.gov, (o) 801-524-3209 (c) 202-941-8106

Charla Allred, Program Support Assistant, Office of Disaster Assistance

charla.allread@sba.gov, (o) 801-524-3209 (c) 202-941-8106

Cheryl Richens, Administrative Officer

cheryl.richens@sba.gov, (o) 801-524-3209

Sharlene Miller, Paralegal
sharlene.miller@sba.gov,  (o) 801-524-3209