Economic Aid to Hard-Hit Small Businesses Nonprofits and Venues
From SCORE (Source)
As of Sunday evening, December 27, President Donald Trump has signed into law a new $900 billion coronavirus relief and stimulus package. The new Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act clarifies questions about the loan process, rules about applying for new loans, and seeking forgiveness for old ones. The bill gives the Small Business Administration 10 days to implement the new rules, so more guidance and information can be expected.
Second Draw PPP Loans
The new act allocates an additional $285 billion for the Paycheck Protection Program (PPP). Small businesses that obtained an initial PPP loan can qualify for a second round of loans, called “second draw” loans. To qualify for a “second draw” loan, eligible businesses must have:
For this round of PPP loans,
New loan amounts are determined by a formula that involves payroll costs multiplied by a factor of 2.5 (again, capped at $2 million). Restaurants and other hospitality businesses may multiply those costs by 3.5, making them eligible for slightly more funding. The bill restricts certain companies from applying for loans, including businesses specializing in political or lobbying activities. More flexible rules have been added to provide for forgiveness of the loans, including clear guidelines that forgiveness of a PPP loan is not taxable.
For Already-Existing and New PPP Loans
The package allows 40% of expenses to be used on items beyond payroll. In addition to mortgage/rent and utilities, these now include:
The deadline for all new loans is March 31.
Grants for Venues and Accommodations
Referred to as the Shuttered Venue Operator Grants, these will be offered for live venues, theaters, and museums that have lost at least 25% of revenue. The money received from these grants will be for specified expenses, such as payroll, rent, utilities, and PPE. The hardest-hit (90% revenue losses) will be eligible for the first 14 days of the program, followed by those with 70% revenue loss in the next 14 days, followed by all other eligible entities.
Economic Injury Disaster Loan (EIDL) Changes
The act added $20 billion for certain grants pursuant to the SBA’s Economic Disaster Injury Loan (EIDL) program. Eligible businesses, independent contractors, gig workers, and self-employed individuals are eligible for up to $10,000 in grants (not required to be repaid) if (1) they are located in a low-income community; (2) they suffered an economic loss of greater than 30% during an 8-week period between March 2, 2020, and December 17, 2021, relative to a comparable 8-week period immediately preceding March 2, 2020, or during 2019; (3) they employ not more than 300 people; (4) they are a qualifying business, such as a small business, private non-profit, sole proprietorship, or independent contractor; and (5) they were in operation by January 31, 2020.
Pandemic Unemployment Assistance, or PUA
The original Pandemic Unemployment Assistance - put in place by the CARES Act in the spring - expired July 2020 and provided $600/week in additional benefits. The updated plan provides $300/week in additional benefits. More details will be forthcoming.
Extension of the Debt Relief Program (Section 325 of full text)
Resumes the payments of principle and interest on SBA 7(a), 504, or microloans, as established in the CARES Act. This extension offers three additional months of payments on existing SBA loans starting in February 2021. The program will also offer six months of payments for new loans closed between February 1, 2021 - September 30, 2021.
More information to follow as updates become available.
Various Quick Links & Resources
South Carolina Business One Stop
Mobile COVID-19 Testing Clinic Locations
New COVID-19 Relief Package- Phase IV Comprehensive Federal Relief Legislation
Safe to Work Act Proposed in U.S. Senate
COVID-19 State and Local Policy Dashboard
Coronavirus State and Local Government Policy Tracker
SC Dept. of Mental Health: Tools & Resources to Safeguard your Mental Health
U.S. Dept. of the Treasury: Personal Finance & Consumer Protection- Quicker Financial Relief
Governor McMaster's Executive Orders for South Carolina:
Minority and Small Business Relief Grant Program:
Minority and Small Business Relief Grant Program Design (Updated 10.20.20)
Minority and Small Business Relief Grant Program FAQs (Posted 10.22.20)
Minority and Small Business Relief Grant Program Calculation Worksheet (Posted 10.19.20)
Posted the Calculation Worksheet Video Tutorials for Minority and Small Business Grant:
Helpful notes on the Minority and Small Business Calculation Worksheet (Posted 10.22.20)
How to advance sections in the Minority and Small Business Calculation Worksheet (Posted 10.22.20)
How to enter numbers from the Minority and Small Business Calculation Worksheet to your application (Posted 10.22.20)
How to save and upload your Minority and Small Business Calculation Worksheet to the application portal (Posted 10.22.20)
Minority and Small Business Relief Grant Program Calculation Worksheet (PDF - Posted 10.21.20)
South Carolina Dept. of Employment and Workforce (DEW):
South Carolina Chamber of Commerce COVID-19 Business Resources
Business Resource & Information Hub
“Business in the Era of COVID-19": A Guide for Moving Your Business Forward
Nonprofit Relief Grant Program
Nonprofit Relief Grant Program FAQs (Posted 10.22.20)
Nonprofit Relief Grant Program Calculation Worksheet (Posted 10.19.20)
Posted the Calculation Worksheet Video Tutorials for the Nonprofit Grant:
Helpful notes on the Nonprofit Calculation Worksheet (Posted 10.22.20)
How to advance sections in the Nonprofit Calculation Worksheet (Posted 10.22.20)
How to enter numbers from the Nonprofit Calculation Worksheet to your application (Posted 10.22.20)
How to save and upload your Nonprofit Calculation Worksheet to the application portal (Posted 10.22.20)
Nonprofit Relief Grant Program Calculation Worksheet (PDF - Posted 10.21.20)
US EPA (U.S. Environmental Protection Agency):
COVID-19 Implications for EPA’s Enforcement and Compliance Assurance Program
SBA (Small Business Administration):
US SBA Fact Sheet- Economic Injury Disaster Loans
Small Business Guidance & Loan Resources
SC Emergency Management Division:
US Chamber of Commerce:
US Chamber Response & Resources
Emergency Loans- Small Business Guide & Checklist