From SBA Coach Mary Hott:
The U.S. Small Business Administration is working as quickly as possible to put the mechanisms, policies and procedures in place to implement the newly-passed PPP/CARES ACT legislation.
We will be providing information to everyone as soon as we are able. In the meantime, we ask for patience. We ask that you please hold your calls and emails on the CARES ACT legislation until our office receives this information from Treasury and SBA Headquarters, and upon our receipt we will provide the most up to date information we receive as quickly as possible through email.
Please take a moment to be sure you are signed up for the updates at www.sba.gov/updates.
We are hosting regular webinars on SBA’s Economic Injury Disaster Loan (EIDL) program, daily. Below is the information.
• Monday, March 30, 2020 at 10 a.m. and 2 p.m.
• Tuesday, March 31, 2020 at 10 a.m. and 2 p.m.
• Wednesday, April 1, 2020 at 2 p.m.
• Thursday, April 2, 2020 at 10 a.m. and 2 p.m.
• Friday, April 3, 2020 at 10 a.m. and 2 p.m.
Training log on information:
• Meeting Phone: 646-876-9923
• Meeting ID: 498 988 675#
• Participant Number: #
• There is no registration
• Sessions are limited to the first 100 participants (log on early)
• If the session is full please join a session at another time
NOTE: YOU MAY APPLY FOR BOTH THE EIDL AND THE PPP/Cares Act programs and we will have better guidance soon on how to determine which funds to apply for in individual circumstances.
Treasury Department Release Guidance for SBA’S Paycheck Protection Program
Federal agencies have begun the process of filling out some of the details of the CARES Act, and our hope is to provide that information to you in a timely and efficient process. To that end, we’ve got a few items of note to update you on this morning.
Late yesterday afternoon, the Treasury Department released its initial guidance regarding the U.S. Small Business Administration’s Paycheck Protection Program (“PPP”). The attached information sheet provides answers to a number of questions regarding the PPP.
Of note, small businesses and sole proprietorships can start applying for loans to cover payroll and other expenses this Friday, April 3rd. Loan application forms can be found here. To assist you further on this front, we’ve also attached the PPP small business guide compiled by the U.S. Chamber of Commerce.
Also, the SBA has released a streamline application process for the Economic Injury Disaster Loans (“EIDLs”), which can be found here. These loans are separate and apart from the PPP, and offer up to $2 million in assistance to help overcome the temporary loss of revenue associated with COVID-19.
With the U.S. Congress on recess until April 20th, and discussions ongoing regarding a potential fourth “phase” of federal relief, a lot of focus has now shifted to state relief efforts as well. Among the measures being considered by states are emergency forbearance and rent abatement programs (Hospitality Industry Letter Attached), grocery sale and food donation guidelines for retail food establishments (Texas guidelines attached) and miscellaneous fee deferrals for the remainder of the year. To the extent that these or any other items would be of assistance to your recovery efforts, please let us know so that we can begin the outreach process with state policymakers and industry partners accordingly.
Finally, the National Restaurant Association provided us with an update on the employee retention tax credit. Please see their update here:
The employee retention tax credit (ERTC) for employers subject to closure due to coronavirus. The provision provides a refundable payroll tax credit for 50% of wages paid by employers to employees during the crisis. The credit is available to employers whose
- operations were fully or partially suspended, due to a coronavirus-related shut-down order, or
- their gross receipts declined by more than 50% when compared to the same quarter in the prior year.
For employers with greater than 100 full-time employees, qualified wages are wages paid to employees when they are not providing services due to the coronavirus-related circumstances described above. For eligible employers with 100 or fewer full-time employees, all employee wages qualify for the credit, whether the employer is open for business or subject to a shut-down order. The credit is provided for the first $10,000 of compensation, including health benefits, paid to an eligible employee. The credit is provided for wages paid or incurred from March 13, 2020 through December 31, 2020.
Click here to read more about what the CARES Act offers for restaurant owners and operators.
PPP Borrower Information Fact Sheet
U.S. Chamber of Commerce COVID-19 PPP Small Business Guide