Help for Small Businesses and the Arts
Source: ArtsActionFund.org
Without a moment to spare, the United States Senate just voted overwhelmingly 92-to-7 to extend the PPP application deadline from March 31, 2021 to May 31, 2021. The House had already passed this legislation 415-to-3 earlier this month, so it now moves to the President’s desk for his signature and certain enactment.
What impact does the PPP extension mean for you?
- For self-employed Schedule C individuals, who struggled to find lenders that offered recently updated application forms featuring the more generous “gross revenue” line 7 of Schedule C application forms for either first draw or second draw, lenders will now have time to update systems so you can apply with the correct forms to ensure you receive a larger forgivable loan.
- For non-schedule C organizations, who have been waiting for your lender to update their PPP first draw and second draw applications with the recently updated certification clause on SVOGs, lenders will now have time to update systems so you can apply with the correct forms.
- For those of you who receive your first draw PPP in the first quarter of 2021, you now have more time to properly complete spending down your first draw in as few as 8 weeks and then apply for a second draw PPP before May 31st.
- For those of you who plan to submit an SVOG application on or after April 8, 2021, and you are also interested in securing a PPP loan now, you must apply for the PPP before you apply for the SVOG.
- We recently posted Proskauer law firm’s PPP deep dive analysis into all the ongoing updates to PPP and Forgiveness to our website.
- There are still ample PPP funds available with a current balance of $88 billion.
- Please give banks and lenders a few days to update their systems with the PPP extension deadline that Congress just passed this afternoon. It still needs to be signed by the President.
- If you are still having a hard time finding lenders, especially those with the updated Schedule C applications for self-employed individuals, here are a few online lenders that I do not have any affiliation with nor do I endorse, but they “appear” to have the most up-to-date SBA forms:
o Womply
o Square
COVID-19 EIDL Loan Updates:
Last week, we reported that the SBA automatically deferred repayment on COVID-19 EIDL loans by an additional 12 months. Yesterday, the SBA also announced that they are increasing the maximum loan amount for both new and existing COVID-19 EIDL loan borrowers because the pandemic has lasted longer than originally anticipated. SBA will be emailing existing borrowers to see if they would like to increase the amount of their loan. Starting the week of April 6, 2021, the SBA is raising the loan limit for the COVID-19 EIDL program from 6-months of economic injury with a maximum loan amount of $150,000 to up to 24-months of economic injury with a maximum loan amount of $500,000. The amount of your loan depends on your business’ previous expenditures and your credit score. Please remember, a COVID-19 EIDL loan is debt that must be repaid over 30 years. It is not a forgivable loan like a PPP.
If you are interested in a Shuttered Venue Operators Grant, be sure to sign up for the SBA’s new SVOG portal opening on April 8th and the SBA’s SVOG webinar on March 30th. Remember, you can always join us on Fridays at 11:00am ET for our Zoom Office Hours to ask any questions related to federal COVID relief funds.
