Small Business Administration prepares for second round of PPP applications - KSN-TV

Small Business Administration prepares for second round of PPP applications - KSN-TV


Small Business Administration prepares for second round of PPP applications - KSN-TV

Posted: 09 Jan 2021 08:55 PM PST

JAKARTA, Indonesia (AP) — Indonesian divers on Sunday located parts of the wreckage of a Boeing 737-500 at a depth of 23 meters (75 feet) in the Java Sea, a day after the aircraft with 62 people onboard crashed shortly after takeoff from Jakarta.

"We received reports from the diver team that the visibility in the water is good and clear, allowing the discovery of some parts of the plane," Air Chief Marshal Hadi Tjahjanto said in a statement. "We are sure that is the point where the plane crashed."

PPP Round 2: What small business owners need to do right now to get help - syracuse.com

Posted: 09 Jan 2021 09:22 AM PST

Syracuse, N.Y. — The $900 billion stimulus relief bill contains $284 billion for a second round of loans to small businesses under the federal government's Paycheck Protection Program.

The U.S. Small Business Administration approved 5 million PPP loans, totaling $500 billion, in the first round of the program, which ended Aug. 8. The program helps businesses harmed by the economic shutdowns during the coronavirus pandemic and to avoid layoffs.

The SBA has issued rules for the second round. It opens next week, so don't dawdle.

Here's what business owners need to know:

Can a business apply for a second loan if it received one in the first round?

Yes, businesses can receive a second loan — called a second draw — if they have spent the entire amount of the first loan on or before the date the second loan is disbursed, and they still need help. (However, it is unclear if borrowers who returned unused portions of their first loans are eligible for a second loan, according to the Bond, Schoeneck & King law firm.)

When and how can businesses apply?

The loans will be made through SBA‑approved lenders and guaranteed by the SBA. So businesses must apply to those lenders by filling out the application forms provided by the bank. It's a good idea for applicants to check first with banks they already have relationships with to see if they will be making PPP loans. They can also check the SBA's list of lenders participating in the PPP program.

When can borrowers apply?

Community financial institutions will be able to make first draw loans (loans to businesses that have not previously received a PPP loan) starting on Monday, Jan. 11, and second draw loans (loans to businesses that have previously received one) starting on Wednesday, Jan. 13. The program will open to all participating lenders shortly thereafter.

The Economic Aid Act defines community financial institutions as four types of lenders: community financial development institution, minority depository institution, community development corporation and microlender intermediary.

What is the deadline for applying?

The program will end on March 31, 2021, or earlier if the money runs out like it initially did during the program's first round. So businesses should apply as soon as possible.

What businesses are eligible?

For businesses seeking their first PPP loan, the requirements are generally the same as they were in the first round.

First draw loans are generally limited to businesses with a maximum of 500 employees (including domestic and foreign affiliates). Certain types of businesses are excluded from the second round, including publicly traded companies, businesses primarily engaged in political or lobbying activities, and China-affiliated businesses.

Businesses seeking a second draw loan can employ no more than 300 people (500 employees for restaurants and hotels) and must demonstrate at least a 25% reduction in gross revenue between one comparable quarter in 2019 and 2020. Alternatively, a borrower may submit annual tax forms showing a reduction in annual revenue of 25% or greater in 2020 compared to 2019.

Why are second draw loans generally limited to businesses with 300 or fewer employees rather than 500?

The first round of the program was criticized for lending money to large businesses that had access to capital and, thus, did not really need the government loans. Jeffrey Scheer, a business law attorney with Bond, Schoeneck & King, said Congress wanted to make sure those receiving a second loan truly need it.

"They really tried to focus in on small businesses," he said.

How much can a business borrow?

Loans are capped at 2.5 times an applicant's average monthly payroll costs in the one year prior to the loan being issued (3.5 times for restaurants and other eligible hospitality businesses).

Loans are limited to a maximum of $10 million for first time PPP borrowers and $2 million for second time borrowers.

What can the money be used for?

The loan proceeds can be used to cover a business's payroll and certain other expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures.

What about loan forgiveness?

If a business uses at least 60% of the loan on payroll expenses and maintains its employment levels during the covered period of the loan, it can apply to have the loan forgiven. Otherwise, the loans carry a 1% interest rate and a maturity of five years.

Forgiven PPP loans are not considered income for federal tax purposes.

What is the covered period of the loans?

In the first round, businesses had to pick either eight or 24 weeks. But the second round provides more flexibility, allowing businesses to select any period between eight and 24 weeks.

Will the loans require collateral or personal guarantees?

No, the loans will be 100% guaranteed by the U.S. Small Business Administration and will require neither collateral nor personal guarantees.

Rick Moriarty covers business news and consumer issues. Got a tip, comment or story idea? Contact him anytime: Email | Twitter | Facebook | 315-470-3148

Biden introduces Commerce, Labor, Small Business Administration nominees | TheHill - The Hill

Posted: 08 Jan 2021 12:38 PM PST

President-elect Joe BidenJoe BidenUS judge blocks Trump administration's restrictions on asylum eligibility McConnell circulates procedures for second Senate impeachment trial of Trump Top Trump official rescinds then reissues resignation letter to say departure is in protest MORE on Friday formally introduced his nominees to lead the Commerce Department, Labor Department and Small Business Administration while urging the Senate to quickly confirm key Cabinet picks.

"I'm proud to announce we have finished naming our Cabinet members, saving the best for last," Biden said while announcing his economic team in Wilmington, Del. "This Cabinet, that I promised you and I've fulfilled that promise, looks like America."

Biden touted Rhode Island Gov. Gina RaimondoGina RaimondoBiden introduces Commerce, Labor, Small Business Administration nominees The Hill's Morning Report - Trump finally concedes; 25th Amendment pressure grows Biden taps Isabel Guzman to lead the Small Business Administration MORE (D), his choice for Commerce secretary, as "one of the most effective, forward-thinking governors in the United States of America." 

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The president-elect noted that as governor she created a program to help minority-owned and women-owned businesses access capital, worked with employers to design skills-training programs and put Rhode Island on the path to achieving 100 percent renewable energy.

"She knows what her fellow governors, Democrats and Republicans alike, are dealing with," Biden said.

Raimondo is the first female governor of the state and has served in the role since 2015. Before that, she was general treasurer and has a background in venture capital.

"The mission of the Commerce Department is a very simple one: to help spur good paying jobs," Raimondo said Friday while appearing at the event.

Biden's choice for Labor secretary is Boston Mayor Marty WalshMarty WalshBiden introduces Commerce, Labor, Small Business Administration nominees Biden says he weighed tapping Sanders for Labor secretary The Hill's Morning Report - Trump finally concedes; 25th Amendment pressure grows MORE (D), a favorite of major labor unions and a former union leader in Boston. Biden called him a "good friend and standup guy."

The president-elect also called him "tough as nails," sharing that Walsh was diagnosed with cancer at age 7, beat it at age 11, and then went on to join labor unions and graduate from college at age 42. 

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"Marty understands like I do that the middle class built this country and unions built the middle class," Biden said.

He said Walsh has fought for a $15 minimum wage, paid family leave and front-line workers.

"This is one of the most important departments to me. I trust Mayor Walsh and I'm honored he's accepting," Biden said.

Walsh, accepting the nomination, said the word labor "means everything to me."

"Working people have been struggling for a long time under the erosion of their rights and the deep inequalities of race, gender, and class," Walsh said.

Biden announced that he seriously considered nominating Sen. Bernie SandersBernie SandersSanders defends push to impeach Trump: Insurrection won't be tolerated Biden introduces Commerce, Labor, Small Business Administration nominees Biden says he weighed tapping Sanders for Labor secretary MORE (I-Vt.) for the Labor secretary position.

"But after Tuesday's result in Georgia, giving Democrats control of the Senate on a tied vote, Bernie and I agreed — matter of fact, Bernie said — that we cannot put control of the Senate at risk on the outcome of a special election in Vermont," he said.

Democrats won both Senate runoffs in Georgia and thereby captured the Senate majority, given a 50-50 split in the chamber that allows Vice President-elect Kamala HarrisKamala HarrisBiden to receive second dose of vaccine in public Biden introduces Commerce, Labor, Small Business Administration nominees Perdue concedes to Ossoff in Georgia MORE able to cast tie-breaking votes.

Biden on Friday also named Isabel Guzman to lead the Small Business Administration (SBA). Guzman is currently director of California's Office of the Small Business Advocate and previously worked at the SBA under former President Obama.

Biden said Guzman "works tirelessly to ensure that everyone with an entrepreneurial spark has a fair and equal shot to get off the ground and succeed."

He noted that Guzman will be in charge of rescuing small businesses in crisis from the coronavirus pandemic and help provide capital to entrepreneurs.

"Together with you and with the exceptional and diverse team you're assembling, I am eager to build our economy back better in every community," Guzman said.

She noted that this is a "cross-roads moment" for small businesses.

Biden also announced Don Graves as deputy secretary of Commerce, who he said is a longtime and trusted adviser of the president-elect. Graves is a former domestic and economic policy director for Biden as vice president.

Biden said his Cabinet, now that it's been fully announced, is evenly composed with women and men, majority people of color, and includes over a dozen history-making selections, such as the first openly gay and Native America members.

He called on the Senate to confirm key Cabinet officials as close to Inauguration Day as possible, especially for the secretary of State, Defense, Treasury and Homeland Security posts.

Biden Taps Isabel Guzman to Lead Small Business Administration - The Wall Street Journal

Posted: 07 Jan 2021 10:59 AM PST

WASHINGTON—President-elect Joe Biden has chosen Isabel Guzman, a California economic development official, to lead the Small Business Administration, according to people familiar with the matter.

Ms. Guzman was a senior official at the SBA during the Obama administration, serving as deputy chief of staff. In 2019, she became the director of California's Office of the Small Business Advocate, where she helped implement a grant program for businesses affected by the pandemic.

If confirmed, Ms. Guzman would lead an agency that is best known for its loan programs to provide small firms with capital and has more recently helped businesses affected by the pandemic. Many of the agency's loan programs rely on partnerships with banks and other financial institutions, which issue the loans and receive an SBA guarantee.

The agency, created in 1953, also offers programs to help small businesses win federal contracting opportunities and funds local centers where entrepreneurs receive counseling, technical assistance and other support. Through its Office of Advocacy, the SBA also aims to advance small-business interests throughout the federal government.

The relatively small bureaucracy played a key role in the federal government's response to the coronavirus pandemic. The SBA administered the popular Paycheck Protection Program, which provided coronavirus aid in the form of forgivable loans to small businesses, nonprofits and self-employed entrepreneurs.

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