Though we have embraced a new year, these are still unprecedented economic times for regional entrepreneurs as they strategize how to do business now and in the post-COVID future. As the backbone of our regional economy, the Entrepreneur Fund understands the importance of supporting our small businesses and look forward to sharing new opportunities to do so in 2021.
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The Entrepreneur Fund
EIDL grants will be given to small businesses located in low-income communities,* who have experienced a 30% reduction in gross receipts during any 8-week period between March 2, 2020 and December 31, 2021 compared to a comparable 8-week period before March 2 or in 2019.
Also, if you meet this description and previously received a EIDL grant that is less than $10,000 you can reapply to receive the difference (those reapplying for the full grant will receive approval priority over new applicants).
What: The EIDL grant is a form of small business relief providing $10,000 dollars in grants, i.e., completely free and non-repayable money, to select small businesses. The grant program was part of the initial CARES Act in 2020, but funds were exhausted within months. In December, Congress allocated additional funds for the program.
Who is Eligible:
* What is a low-income community? This article explains how to determine if you live in a low-income community, and the federal government offers this map where you can type in your address for determination.
When to Apply: Authorized through December 31, 2021, but applications close when funds run out – so if eligible, apply fast. SBA hopes to be accepting applications on or around January 17, 2021.
How to Apply: We expect the SBA application portal to be ready by January 17, 2021. Small businesses should monitor the SBA website in the next week for more information.
At the high level, there is funding for three categories of PPP loans in this legislation:
The PPP loan can be fully forgiven and is non-taxable. For all types of PPP loans, no collateral or personal guarantee is required. For these new loans, any amount not forgiven becomes a loan at 1% for five years.
Eligibility for a "Second Draw" This program is for small businesses, non-profits, sole proprietors, and independent contractors who have exhausted their initial PPP loan. The program will make new loans through March 31, 2021 or until the new funding is exhausted. Eligibility includes:
"Second Draw" Key PPP Updates
How to Apply:
Planning to borrow through the PPP forgivable loan program for the FIRST TIME?
The SBA is giving priority to first time borrowers who apply through community lending institutions, rather than the big banks. PPP applications through the large financial institutions will begin at a later date.