More Economic Assistance for Businesses Impacted by COVID-19
In December 2020, Congress passed new and additional relief measures in a COVID-19 stimulus bill. The Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act or Economic Aid Act reopens the Paycheck Protection Program (PPP) for new applications and provides funding for a second round of forgivable loans (through PPP) for eligible small businesses and nonprofits experiencing significant revenue losses. A variety of other updates, enhancements and additions have been included in this new Act.
Visit the SBA website (sba.gov/coronarelief) for all of the details and requirements. Act quickly because there are deadlines associated with some of the requirements.
Key PPP updates include:
- PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs;
- PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
- The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, destination marketing organizations, among other types of organizations;
- The PPP provides greater flexibility for seasonal employees;
- Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; and
- Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.
A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
- Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
- Has no more than 300 employees; and
- Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
The official press release with instructions from the SBA Office of Disaster Assistance is here and you can visit https://www.sba.gov/coronavirusrelief for more information.
How to apply:
- Applicants may apply online, receive additional disaster assistance information and download applications at https://www.sba.gov.
- Applicants may also call the U. S. SBA’s Customer Service Center at (800) 659-2955 or email firstname.lastname@example.org 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
- The University of Georgia Small Business Development Center has 17 offices across the state, covering every county, with consultants available to assist small business owners through the SBA Economic Injury Disaster Loan application process. You can find and connect with your local UGA SBDC office at this Link: UGA SBDC Locationsor send a message to our State Office in Athens here: Contact UGA SBDC. Many of our offices are working remotely, so if you do call and get a voicemail, we will work to return your call as soon as possible.
- COVID-19 Community Resources: GA VOAD and GEMA/HS Community Recovery are working together to provide updated resources for nonprofit and faith-based organizations and the communities they serve. This is an evolving document that will continue to be updated. If you have additional resources for consideration, email: email@example.com.