PPP Loans and Shuttered Venue Operators (SVO) Grants
PPP – Round Two
In accordance with the recently passed Economic Aid Act, the Small Business Association (SBA) resumed the Paycheck Protection Program (PPP) on January 11, 2021, First and Second Draw PPP loans are now available for application.
First Draw PPP Loans are available for those borrowers who did not receive a PPP loan before the original program closed on August 8, 2020.
Second Draw PPP Loans are available for eligible small businesses with 300 employees or less, that had previously received a First Draw PPP Loan and will use or have used the full amount for the authorized uses and can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
For purposes of calculating the 25% reduction, entities can use:
1. Quarterly financial statements or bank statements
2. Annual receipts from 2019 tax return compared to 2020 tax return information
For both First Draw and Second Draw PPP Loans, forgivable expenses have been expanded to include not only payroll costs, mortgage interest, rent and utilities; but also group life, disability, vision or dental insurance, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations. These changes are made retroactively to the effective date of the CARES Act.
The New PPP loan and Second Draw PPP loan application deadline is March 31, 2021 or upon exhaustion of funds.
Application must be made through a participating lender; however a sample application form is available on the SBA website. Please click here.
Shuttered Venue Operators (SVO) Grants
Grants will soon be available for various entities engaged in the operations of live venues, theatrical producers, live performing arts organizations, relevant museum, zoos and aquarium operators, motion picture and/or talent representatives.
Eligible applications may qualify for grants equal to 45% of their gross earned revenue from 2019, up to a maximum award amount of $10 million. The application cycle will be structured to ensure that small entities (50 employees or less), receive priority. For entities with over 50 employees, the application cycle will open 61 days after initial grant awards.
At this time, the SBA is finalizing details on eligibility requirements, but anticipates the application cycle to open soon.
For more information on SVO grants, visit the SBA website here.
If you have any questions regarding this news alert please contact us today at 313-965-2655.
Stay healthy and safe,