Yes. The Consolidated Appropriations Act (CAA), 2021, which was passed into law on December 27, 2020, featured financial support for a novel breed of Economic Injury Disaster Loan (EIDL) advance as well as financial backing for a fresh grant that specifically targets closed locations.
As a result, the SBA presently provides three programs through which troubled enterprises could procure forgivable funding if they meet the criteria. Depending on the scheme as well as requirements, funds of up to $10 million are available.
The new Targeted EIDL Advance provides up to $10,000 to past EIDL Advance beneficiaries or low-income candidates. The Shuttered Venue Operator Grant (SVOG) program provides close to $10 million in forgivable support to qualified candidates.
First-time (First Draw) PPP loans of close to $10 million could be forgiven entirely, whereas Second Draw forgivable loans are limited to $2 million. The PPP loan program now includes numerous forgivable expenditures; however, PPP forgiveness demands a request, although there is a streamlined one-page forgiveness application for amounts below $150,000.
The PPP Extension Act gave candidates until May 31, 2021, to file for a PPP loan, and financial institutions till June 30, 2021, to evaluate such requests. The covered duration for all PPP loans was lengthened to June 30, 2021.
SBA Grants and How to Apply for Forgiveness
Certain loans and grants, such as the EIDL grant as well as the Paycheck Protection Program loan, might well be forgiven. Nonetheless here are well-known SBA grants and how to apply for forgiveness.
Targeted EIDL Advance
Renowned as one of the most stringent schemes approved under the CAA, the Targeted EIDL Advance scheme provides about $10,000 to candidates in low-income localities who earlier obtained an EIDL Advance for less than $10,000, or individuals who decided to apply but were not awarded funds due to a shortage of accessible program funding.
If you originally applied for and obtained a provisional EIDL Advance through the original, now-defunct EIDL Advance scheme, the SBA will contact you via e-mail to ascertain your qualifications as well as provide directions on what paperwork you must offer up.
How to Apply for Forgiveness
Targeted EIDL Advance forgiveness does not have an official application process. You are free to begin utilizing the cash as soon as you get them.
The only stipulation is that you use the advance just for the approved expenditures. Even though no application or financial reporting requirements exist, you must maintain a continuous log of how you spent the funds in case the SBA has relevant questions.
Shuttered Venue Operators Grant (SVOG) Program
The CAA, 2021 created the Shuttered Venue Operators Grant (SVOG) program as a component of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, which was afterward revised by the American Rescue Plan Act.
The package includes $16 billion in grant money for closed venues, which will be managed by the SBA’s Office of Disaster Assistance. Candidates applying might receive 45% of their gross earned revenue, with an optimum award sum of $10 million accessible per grant, with $2 billion reserved for able-to-qualify candidates with a minimum of 50 full-time workers.
How to Apply for Forgiveness
If you obtain an SVOG, you will indeed be bound to maintain paperwork proving that you met the agency’s qualifications as well as other criteria. This would include keeping employment records for four years after receiving the grant.
Certain other documents must be kept for a period of three years. Wage bills, utility services, loan repayments, deficit spending, occupational safety, contract employees, normal and essential expenditure, management, state, and local taxes, as well as fees, leases (as of February 15, 2020), general liability, marketing, and production costs, are all eligible for SVOG funds.
Since the whole PPP loan is liable to forgiveness, the guidelines for this scheme are separate. PPP loans are prepared via an SBA-approved lender, which adds yet another stack of red tape. The Paycheck Protection Program (PPP) has indeed run out of money several times ever since it was established by the CARES Act, and it was most recently updated by the American Rescue Plan Act.
The PPP Flexibility Act of 2020, which was passed on June 5, 2020, made major improvements to PPP loan forgiveness, including extending the period of time you would have to devote the cash, lowering the proportion that should be expended on a paycheck, and more.
Note that with the passage of the PPP Flexibility Act of 2020, candidates were expected to devote at least 60% of the money collected from the PPP loan to “payroll costs,” as outlined in the CARES Act.
How to Apply for Forgiveness
The CARES Act mandates you to apply for loan forgiveness to your lending institution immediately after the eight- to 24-week period after loan disbursement (although it mostly depends on your chosen date). To apply, you should first provide the following documents:
- The total portion of forgiveness demanded.
- Confirmation of the number of full-time employee equivalents (FTEEs) as well as their wage levels on wage bills, such as IRS payroll tax records and state income, salaries and benefits, and unemployment benefits.
- Deposit confirmation for covered mortgage interest, rent/lease commitments, as well as utility services.
- Certification from an officially approved agent of your firm that the documentation provided is correct as well as the amount forgiven is in accordance with PPP rules.
Thousands of companies had difficulty staying financially solvent after the COVID-19 disease outbreak. Small business owners felt the challenges and setbacks more as a result of shutdowns, containment, and a lack of predictability. Although EIDL loans cannot be forgiven, targeted EDIL Advances, Shuttered Venue Operators Grants, and various other covid-related financial assistance can.