In 2020 and 2021, many small businesses took advantage of the Paycheck Protection Program (PPP) authorized by the CARES Act. Some of our clients received PPP funding. However, many businesses ran into problems with the application process.
PPP loan funding has since closed. Many businesses are still in need of assistance. Perhaps you have asked: “What can I do if I did not receive PPP funding?”
We compiled some common questions along with some helpful suggestions.
Is there additional COVID-19 assistance available?
Yes! Aside from PPP, the SBA does provide other financial assistance for small businesses impacted by COVID-19.
One program that is still available is the Economic Injury Disaster Loan (EIDL). The purpose of the EIDL is to provide economic relief to small businesses that are experiencing a loss of revenue due to the pandemic, including agricultural and nonprofit organizations. Loan proceeds can be used for working capital and operating expenses.
Currently, loan applications submitted after April 2021 are eligible for up to 24-months of economic injury with a maximum eligibility amount of $500,000. Although not forgivable, this 30-year loan comes with a fixed rate of 3.75% (2.75% for nonprofits).
Are there any grants or advances still available?
Although the original EIDL advance program is no longer available, SBA has provided two new programs issuing advances to qualified businesses.
The Targeted EIDL Advance provides a payment of up to $10,000 that does not need to be repaid. To apply for this program, your business will need to meet the following requirements:
- You must first apply for a COVID-19 EIDL loan
- Your business must be located in a low-income community
- You can demonstrate more than a 30% economic loss during an eight-week period beginning on March 2, 2020 or later
- Your business has 300 or fewer employees
In addition, the Supplemental Targeted Advance provides an additional $5,000 advance that does not need to be repaid. Before applying, your business must meet the following criteria:
- You have completed the Targeted EIDL Advance application
- Your business must be located in a low-income community
- You can prove more than a 50% economic loss during an eight-week period beginning on March 2, 2020 or later
- Your business employees 10 or fewer employees
Between these two programs, qualified small businesses are eligible for up to $15,000 in financial assistance that will not need to be repaid. To determine if your business is located in a low-income area, the SBA has provided an interactive map tool.
What else can I do right now?
Here are some ideas we suggest of steps you can take right now:
- Create a budget to give you a realistic projection of your future income and expenses
- Review your spending and eliminate any unnecessary expenses.
- Create a simple cash flow forecast to see how long your funds on hand will last.
- Explore pivoting certain aspects of your business to generate more revenue
We have been hard at work with our clients to assist in any way we can. We have a central resources page for those looking for information on how to support their business during the pandemic. We invite you to review this page for additional helpful suggestions.
Updated 7/13/2021