Because the COVID-19 Pandemic continues to burden the economic system further sources have been launched to assist small companies throughout this troublesome time. This text will cowl a number of the program particulars which have both been enhanced or modified to supply further monetary sources.
Paycheck Safety Program (PPP) First Draw and Second Draw PPP Loans can be found. This system is accepting purposes via March 31, 2021, or till the brand new funding is exhausted. The preliminary eligibility necessities stand for a primary draw PPP Mortgage. Should you obtained a PPP Mortgage in 2020 you could be eligible for a Second Draw PPP Mortgage.
A borrower is mostly eligible for a Second Draw PPP Mortgage if the borrower:
Beforehand obtained a First Draw PPP Mortgage and can or has used the total quantity just for approved makes use of; has not more than 300 workers; and may reveal a minimum of a 25% discount in gross receipts between comparable quarters in 2019 and 2020
Expanded Worker Retention Tax Credit score:
The brand new regulation has expanded the eligibility of employers. Now employers can make the most of these credit in the event that they skilled a decline of greater than 20% within the corresponding quarter because it compares to 2019 gross sales. The utmost quantity of credit score alternatives has additionally been considerably elevated for the time interval starting on January 1, 2021, and can expire on June thirtieth, 2021. Should you beforehand didn’t reap the benefits of these tax credit since you obtained a PPP mortgage, you at the moment are in a position to make the most of these credit. Small companies who beforehand obtained the PPP Mortgage could now make the most of the Worker Retention Tax Credit score, nevertheless, they might not use the identical payroll intervals in conjunction. Go to along with your accountant in the event you really feel you could be eligible for these tax credit.
EIDL Grants: The brand new regulation reopens the $10,000 EIDL Advance Grant program. Precedence eligibility for this program contains the next; small companies with not more than 300 workers, situated in low-income neighborhoods, who’ve skilled a 30% discount in gross receipts throughout any 8-week interval between March 2, and December 31, 2020, in comparison with a comparable 8-week interval earlier than March 2. Should you meet this description and obtained a grant that’s lower than $10,000 you may reapply to obtain the distinction.
These are just a few of the key additions that improve the alternatives for small companies to obtain further monetary help on the federal stage as a result of COVID-19 Pandemic. If you’re nonetheless looking for different choices, please attain out to the ASU- SBDC advising crew for extra particulars on the applications listed above in addition to the “Grants for Shuttered Venue Operators” focused to small enterprise venues and the SBA Mortgage Debt Forgiveness program for any present SBA Borrower. The Licensed Enterprise Advisors of the ASU-SBDC have an unlimited data of each federal and native funding alternatives and applications; collectively they’ve helped a whole bunch of space small companies receive funding in the course of the COVID- 19 pandemic.
“Enterprise Ideas” was written by Dezaray Johnson, Enterprise Growth Coaching Coordinator, of Angelo State College’s Small Enterprise Growth Middle. For extra info on the subject of this text or the providers of the ASU · SBDC, contact her at Dezaray.Johnson@angelo.edu