U.S. Small Business Administration will begin registrations on Friday, April 30, 2021, at 9 a.m. EDT and open applications on Monday, May 3, 2021, at noon EDT for the Restaurant Revitalization Fund. The online application will remain open to any eligible establishment until all funds are exhausted.
In preparation, the SBA recommends qualifying applicants familiarize themselves with the application process in advance to ensure a smooth and efficient application experience, specifically by:
- Registering for an account in advance at restaurants.sba.gov starting Friday, April 30, 2021, at 9 a.m. EDT.
- Reviewing the official guidance, including program guide, frequently asked questions, and application sample.
- Preparing the required documentation.
- Working with a point-of-sale vendor or visiting restaurants.sba.gov to submit an application when the application portal opens. [Note: If an applicant is working with a point-of-sale vendor, they do not need to register beforehand on the site.]
- For assistance preparing your application, you can access the following:
RRF knowledge base support documentation
Call center support: 1-844-279-8898
For the first 21 days that the program is open, the SBA will prioritize funding applications from businesses owned and controlled by women, veterans, and socially and economically disadvantaged individuals. All eligible applicants are encouraged to submit applications as soon as the portal opens. Following the 21 days, all eligible applications will be funded on a first-come, first-served basis.
Applying for an EIDL loan and need funds?
The Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly.
LEARN MORE HERE
PAYCHECK PROTECTION PROGRAM
The Small Business Administration and U.S. Treasury announced the Paycheck Protection Program (PPP) will re-open the week of January 11, for new borrowers and some existing PPP borrowers that qualify.
Only community financial institutions (defined as Community Development Financial Institutions, Minority Depository Institutions, Certified Development Companies and Microlender Intermediaries) will be able to make “First Draw” PPP loans on Monday, January 11th and “Second Draw” PPP loans on Wednesday, January 13th.
First Draw applications open: January 11, 2021
Second Draw applications open: January 13, 2021.
Key updates of PPP include:
- Borrowers can set their loan covered period to be any length between 8 and 24 weeks to best meet their needs
- Loans will cover additional expenses including operations expenditures, property damage costs, supplier costs, and worker protection expenditures
- Eligibility is expanded to include 501(c)(6)s, housing cooperatives, direct marketing organizations, among other types of organizations
- Greater flexibility for seasonal employees
- Certain existing PPP borrowers can request to modify their “First Draw” PPP loan amount
- Certain existing PPP borrowers are now eligible to apply for a “Second Draw” PPP loan
Existing PPP borrowers that are eligible for a “Second Draw” PPP loan must:
- Employ not more than 300 employees
- Have used the full amount of its first PPP loan
- Demonstrate at least a 25% reduction in gross receipts in the first, second, or third quarter of 2020 relative to the same quarter in 2019. Additionally, applications submitted on or after January 1, 2021 are eligible to utilize the gross receipts from the fourth quarter of 2020 as needed.
For full guidance on the Paycheck Protection Program, please visit the U.S. Department of Treasury website.
PPP General Program Details:
$350 billion to support loans to small employers with more than one physical location that employees more than 500 employees in certain industries to be eligible and is below a gross annual receipts threshold plus those that meet the SBA size standards.
Loan size will equal 250% of an employer’s average monthly payroll with a maximum loan amount of $10 million.
Covered payroll costs include salary, wages, and payment of cash tips, employee group health care benefits (including insurance premiums, retirement contributions, and covered leave) in addition to mortgage, rent, and utility payments.
Loans will be available immediately through existing SBA-certified lenders.
The portion of the loan used for covered payroll costs, interest on mortgage obligations, rent, and utilities would be forgiven.
Interest rates are fixed at 1%.
At least 60% of loan proceeds need to go to payroll expenses in order to maximize potential loan forgiveness. For full guidance on the Paycheck Protection Program, please feel free to visit the U.S. Department of Treasury website.
ECONOMIC INJURY DISASTER LOANS
As part of the new COVID relief package passed at the end of 2020, the deadline for EIDL has been extended to December 31, 2021.
Racine County and Wisconsin small businesses impacted by COVID-19 can now seek individual small business loans with low interest rates up to $2 million as part of SBA’s Economic Injury Disaster Loan program to help finance operational costs. For more details on SBA Economic Injury Disaster Loans, visit the BLP’s website:
- Eligible entities may apply for loans up to $2 million
- Interest rates are fixed up to 30 years at 3.75% for small businesses and 2.75% for non-profits
- Financing can be used for working capital to help pay fix debts, payroll, accounts payable, and other bills that can’t be paid as a result of the disaster.
- The Consolidated Appropriations Act of 2021 repeals the requirement that borrowers must deduct the $10,000 EIDL Advance amount from the forgivable amount of the PPP loan. If a borrower’s PPP loan forgiveness amount was previously reduced by the EIDL grant, the SBA must take action to remedy the issue.
