Federal Relief Applications, Tips & Updates With SBA
Updated: Feb 5
Mark Costello and Janie Sacco with the Small Business Administration briefed members on a number of topics related to federal relief. Here's an overview, and you can watch the replay here. Download the PowerPoint below.
Costello spoke about the Shuttered Venue Operators Grant (SVOG)—a $15 billion grant program to help venue operators and managers. It covers businesses such as live venue operators or promoters, theatrical producers, live performing arts organization operators, museum operators, zoos and aquariums who meet specific criteria, motion picture theater operators, talent representatives, and others.
Eligible applicants may qualify for SVO grants equal to 45% of their gross earned revenue, with the maximum amount available for a single grant award of $10 million. $2 billion is reserved for eligible applications with up to 50 full-time employees. Applications are not open yet. For more details, click here.
Janie Sacco gave an overview of the PPP First Draw and Second Draw loans and timelines. Applications are open now, and close March 31. Janie also spoke about lenders aka Community Financial Institutions (CFIs). For a searchable spreadsheet to find a CFI in your area, see the Seattle Restaurant Alliance Resource page here. Also, for step by step tools to help with your calculations, click here.
Sacco also gave an update on loan forgiveness. Borrowers must apply for loan forgiveness through their lender and their lenders submits to SBA. Economic Injury Disaster Loans (EIDL) advances are no longer deducted from forgiveness payment. Forgiven PPP loans are not taxable income; expenses paid with PPP loan funds are now tax deductible; consult the IRS for details. Expanded forgivable expenses are permissible for any PPP loan not already forgiven. Also, simplified forgiveness application for PPP loans $150,000 and under is now available. For details, click here.
The Economic Injury Disaster Loans (EIDL) program has been extended for another year. These are low interest (3.75% for businesses) loans which are not forgivable. Businesses who applied previously can not apply again but can apply to increase their loan amount. While not forgivable like PPP, they can help a business because the loans can be applied to working capital and normal business operations. Download the SBA presentation here.