|Borrowers may be eligible for Paycheck Protection Program (PPP) loan forgiveness|
If you received the Payroll Protection Loan (PPP) make sure you are taking the necessary steps to apply for loan forgiveness.
A borrower can apply for forgiveness once all loan proceeds for which the borrower is requesting forgiveness have been used. Borrowers can apply for forgiveness any time up to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred, and borrowers will begin making loan payments to their PPP lender.
You can find more information on the SBA Website.
The American Rescue Plan Act established the Restaurant Revitalization Fund to provide funding to help restaurants and other eligible businesses keep their doors open.
During this live webinar we will discuss:
- What is the Restaurant Revitalization Fund
- Who is eligible to apply
- How much money you can get
- How funds can be used
- How and when to apply
- Where to get help with your application
Staff from SBA will be answering your questions live throughout the presentation with dedicated Q&A time at the end.
Who should attend: Current small business owners who have experienced pandemic related revenue losses who own a restaurant, bar, and other similar places of business that serve food or drink.
What you should know about
April 9 deadline for Working Washington Grants: Round 4
The application portal is still open! This program is administered by the state Department of Commerce and focuses on brick-and-mortar for-profit small businesses, especially those that were required to close due to public health and safety measures. Grant awards will be up to $25,000. Visit commercegrants.com for information. Materials are available in multiple languages and technical assistance teams are ready to help with questions.
WSDA COVID-19 Relief and Recovery Grants for ag-related sectors
The Washington State Department of Agriculture (WSDA) is offering grants to small agriculture-related businesses in sectors that have suffered economically due to the coronavirus pandemic, but have been left out of earlier relief programs.
The WSDA Relief and Recovery grants, funded through a partnership with the state Department of Commerce, are intended to assist small businesses in four agriculture sectors, which include:
- Shellfish growers
- Farmers market organizations
- Agritourism farms
- Small breweries, cideries, wineries, and distilleries that depend on tap and tasting room sales
The application period for the WSDA grants will be open for two weeks, beginning as soon as Friday, April 9. Visit agr.wa.gov/grants to learn more.
Small Business Administration’s Shuttered Venue Operators Grant program launches this week
The Shuttered Venue Operators Grant (SVOG) program includes over $16 billion in grants to shuttered venues, to be administered by SBA’s Office of Disaster Assistance. The application portal is scheduled to open Thursday, April 8.
Eligible entities include:
- Live venue operators or promoters
- Theatrical producers
- Live performing arts organization operators
- Relevant museum operators, zoos and aquariums who meet specific criteria
- Motion picture theater operators
- Talent representatives
More information about eligibility and the application process are available here.
What you should know about…
COVID-19 vaccine distribution update
The Washington State Department of Health (DOH) continues to make progress with their COVID-19 vaccine distribution and administration efforts.
As of March 29, more than 3,325,998 doses of vaccine have been given across the state, which is 83% of the 4,006,330 doses that have been delivered to Washington state providers and long-term care programs. Washington is currently averaging 55,894 vaccine doses given each day. This information can be found on the DOH data dashboard under the vaccines tab, which is updated three times per week.
Inslee announces vaccine eligibility expansion to all adults April 15
Gov. Jay Inslee recently announced that effective April 15, all Washingtonians age 16 and up will be eligible to receive a COVID-19 vaccination.
Over the past four months since Washington began administering doses of the vaccination, the state has followed a tiered eligibility system, beginning with those most at risk of hospitalization and death.
The governor and the state Department of Health (DOH) have also prioritized equity issues in each phase to ensure vaccine access to populations disproportionately affected by the virus, including communities of color and low-income communities.
The expansion of eligibility comes, in part, in response to a recent uptick in COVID cases in the state.
Find more information on the COVID-19 vaccine here.
Use the Vaccine Locator tool to register for a vaccination appointment here.
For DOH’s COVID-19 Information Hotline, dial 1.800.525.0127, then press #. Language assistance is available.
What you should know about…
Resources for small businesses
Washington Requirements and Resources Webinars
“Start a Business in Washington,” is a free, one hour webinar which includes information about business registration and licensing, other regulatory requirements, and resources for further assistance. The webinar is scheduled for April 14 at 2 p.m. Click here for more information and to register online or call 800-917-0043.
Additionally, the free, 90-minute “COVID-19 Impact Webinar” includes the Governor’s Office of Regulatory Innovation and Assistance and the state departments’ of Employment Security, Labor and Industries, and Revenue. These partners provide an overview of resources, updates, emergency rule changes, and other impacts affecting small businesses to create a new successful path forward. Subject matter experts are available online answering questions throughout the webinar. The webinar is scheduled for April 22 at 2 p.m. Click here for more information and to register online or call 800-917-0043 and the Spanish webinar is at 9:00 a.m. Click here for more information and to register online or call 360-515-6101.
PPP loan borrowers including schedule C filers have until March 31st to submit 1st Draw or 2nd Draw PPP applications unless funds run out or congress extends the deadline.
Contact your local business lender. Visit smallbizhelpwa for additional info. Or call the new PPP Assistance Line 833.562.1078
Were you a sole proprietor, LLC or independent contractor that was not able to participate in the Paycheck Protection Program because you did not have a significant profit from your business? If so, you might have the opportunity to access up to around $20,000 in PPP grant (forgiveness) money (up to about $30,000 if you run a restaurant). But you may only have days to apply for these funds.
The SBA has just released a new PPP forgiveness formula that uses revenue reported on your 2019 or 2020 Schedule C (line 7) rather than net profit (line 31). In a nutshell, you can now count your revenue as the basis for forgiveness just like employee wages (to a maximum of $100,000/yr). Engage your accountant in the details.
Please review the scenarios in the attached PDF “Revenue-Based PPP Formula” to see how this works in practice.
The new PPP application form and SBA FAQ document is also attached for your review. There are other program requirements of PPP that still apply such as:
- having been in operation on February 15, 2020
- documentation of income using tax statements
- if you use revenue of more than $150,000 as your loan basis you will need to certify to the SBA that “Current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant”.
Businesses that are taxed by the IRS as C-Corporations, S-Corporations and Partnerships are not eligible to use the gross income calculation method for calculation the PPP loan amount. Only businesses that use Schedule C to report their income and expenses to the IRS are eligible.
It appears that these new rules are not retroactive – if you have already received a 2nd round PPP loan you cannot resubmit under these rules. These rules should be available for anyone who has not gotten a PPP loan, or has only gotten a 1st round loan.
If you are interested, you should apply as soon as possible. The special small business-only application period expires next Tuesday (March 9th) and the overall deadline for applications is March 31, 2021. The new stimulus bill going through congress does not significantly increase PPP funding, except for a new program for restaurants.
Since this form was only published on March 3 the banks – where you apply – may not have updated their systems. Applying could be a chaotic experience and you will want to research multiple options. You may want to try and reach a customer service representative on the bank’s PPP program. It is possible that some of the “FinTech” funders like Biz2Credit and Bluevine might be faster off the mark than local banks.
To move forward, download these PDF files…
Steps to Promote Equitable Relief for Mom-and-Pop Businesses
Building on a month of strong results, the Biden-Harris Administration and the U.S. Small Business Administration are taking steps with the Paycheck Protection Program to further promote equitable relief for America’s mom-and-pop businesses.
The latest round of Paycheck Protection Program funding opened one month ago and already the Biden Administration has succeeded in making major improvements to the program’s implementation:
- For businesses with fewer than ten employees, the share of funding is up nearly 60%
- For businesses in rural communities, the share of funding is up nearly 30%
- The share of funding distributed through Community Development Financial Institutions and Minority Depository Institutions is up more than 40%