The new Paycheck Protection Program (PPP) portal opened January 11, 2021, for new and certain existing PPP borrowers. The new rules from the Small Business Administration (SBA) on both PPP and the targeted Economic Injury Disaster Loan (EIDL) grants aim to correct some of the lending discrimination uncovered in the first round.
The SBA has set aside funding that will prioritize PPP loans for first-time PPP borrowers, borrowers with under 10 employees and small businesses in low- and moderate-income neighborhoods.
Initially, loan applications will be accepted only from community financial institutions to prioritize access to capital for minority, underserved, veteran and woman-owned small businesses.
The DC Women’s Business Center created a list of COVID-19 resources to assist women entrepreneurs in the District of Columbia. Here is more information on the upcoming and current federal economic aid available for small businesses, nonprofits and venues in the United States:
The Paycheck Protection Program will provide small businesses, independent contractors and eligible nonprofits, who had a temporary reduction in revenue during the pandemic, a business loan up to 3.5 times monthly payroll cost for restaurant and hospitality industries, an increase from 2.5 for other industries. This loan is forgivable if 60% is used on payroll. Businesses need to work with their bank to apply for this temporary emergency assistance. Businesses must apply by March 31, 2021.
Emergency Rental Assistance program is currently open until January 31, 2021. Property owners can apply for rental assistance on behalf of renters with consent at local community organizations that administer the program. Payments can be made directly to the landlord or renter.
The new targeted Economic Injury Disaster Loan Advance Grants will provide $10,000 grants to eligible applicants in low-income communities that did not secure grants initially due to fund depletion. Businesses that apply for the EIDL may be eligible to receive a $10,000 grant advance.
COVID-19 Economic Injury Disaster Loan for small businesses and nonprofits will provide low interest and long-term repayment options to borrowers. The loan amount will depend on an economic injury calculation. Deadline has been extended to December 31, 2021.
Shuttered Venue Operator Grant provides grants to live venue operators, theatrical producers, live performing arts organization operators, museum operators, motion picture theater operators, and talent representatives who demonstrate at least a 25% reduction in revenues.
To learn more about the Paycheck Protection Program join the Latino Economic Development Center and the DC Women’s Business Center on Wednesday, January 14, 2021, at 12:00 PM ET for an Info Session About Paycheck Protection 2.0.
Visit treasury.gov/cares for more information on the Paycheck Protection Program and the Coronavirus Response and Relief Supplemental Appropriations Act of 2021. A full rollout is expected by February 2021.
The DC Women’s Business Center (DC WBC), supported by the U.S Small Business Administration and the National Community Reinvestment Coalition (NCRC) is a small business development center. The DC WBC’s mission is to empower women entrepreneurs to build resilient and successful businesses, strengthen their community’s economy, and create wealth for their families.
Additional COVID-19 resources are available on NCRC’s COVID-19 Resource Page.
Monti Taylor is a resource coordinator at the DC Women’s Business Center.
Photo by Christina @ wocintechchat.com on Unsplash