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The COVID-19 Relief Pennsylvania Statewide Small Business Assistance program has been established to provide grants ranging from $5,000 to $50,000 for small businesses impacted by COVID-19. There will be several rounds of funding. The first application window is open from June 30th to July 14th.   Visit the website below for details on the various Pennsylvania small business grants available. PA Business Grants Website be physically located, generating at least 51% of revenues, and certified to do business in Pennsylvania; have no more than 25 employees prior to February 15, 2020; andhave annual revenues below $1,000,000 prior to COVID impact. Operated and owned by… read more »

Guidance on PPP Issues The Small Business Administration (SBA) have provided guidance on PPP issues as they provide more information and answer questions. This article will cover the following topics: Calculating Maximum Loan Amount by Business Type IFR regarding Calculation of Payroll Costs of Certain Fishing Boat Owners IFR Additional Eligibility Revisions to First Interim Final Rule regarding Felony Convictions Updated FAQ’s The Small Business Administration (SBA) have provided guidance to assist businesses in calculating payroll costs to determine the amount of a Paycheck Protection Program (PPP) loan for which they may apply. Follow the link below to learn more…. read more »

The U.S. Small Business Administration (SBA) has posted a significant quantity of new information over the past several days. In this article we will provide a basic overview of this new information with links to primary sources with more details and applications. We will begin with a review of the purpose of the SBA followed by updates on their two biggest stimulus programs for small businesses: the Economic Injury Disaster Loan (EIDL) and the Paycheck Protection Program (PPP). Updates to these programs include reopening the EIDL and EIDL Advance portal, new PPP Interim Final Rules (IFRs), and the new EZ and revised full… read more »

When a government agency such as the SBA has good reason to issue a final rule before publishing a proposed rule, it issues the rule as an “interim final rule,” or “interim rule.” Interim rules becomes effective as soon as they are published. The SBA’s new Interim Final Rules (described briefly below) were created to implement the PPP Flexibility Act and offer additional guidance to both borrowers and lenders. On June 5, 2020, the PPP Flexibility Act, which amended the CARES Act (see above), was signed into law. This IFR changed key provisions in the CARES Act such as deferral of loan payments, loan maturity, and forgiveness provisions. The provisions… read more »

The U.S. Small Business Administration (SBA) and the Department of the Treasury posted a revised Paycheck Protection Program (PPP) loan forgiveness application that is more borrower-friendly.  The SBA, in addition to revising the full forgiveness application, has also published a new EZ version of the forgiveness application. Are self-employed with no employees; ORDid not reduce the wages or salaries of their employees by more than 25%, and did not reduce the hours of their employees; ORExperienced reductions in business activity due to COVID-19 health directives and did not reduce the wages or salaries of their employees by more than 25%. … read more »

To meet the needs of small businesses and non-profits, the U.S. Small Business Administration (SBA) today reopened the Economic Injury Disaster Loan (EIDL) and EIDL Advance program portal to all eligible small businesses and nonprofits experiencing economic impacts due to COVID-19. SBA’s EIDL program provides low interest, long-term assistance for small businesses or non-profit organizations.  These loans help alleviate temporary loss of revenue and can be used to fund expenses, pay debt, and cover payroll and inventory.  The EIDL Advance offers up to $10,000 ($1,000 per employee) of emergency relief to businesses experiencing temporary difficulties, and these emergency funds do not need to be… read more »

Governor Tom Wolf announced a $225 million Pennsylvania grant program to aid the smallest and most vulnerable businesses impacted by COVID-19 and the business closure order. The state has shifted its focus towards reopening the commonwealth and is offering assistance to those businesses that were hurt by the pandemic and the resulting economic downturn. When Governor Wolf announced the new program, he said. “This new program will provide direct support to impacted businesses to cover operating expenses during the shutdown and the transition to reopening.” The funds can be accessed through three programs: This program provides relief for small businesses… read more »

President Trump signed the Paycheck Protection Program Flexibility Act of 2020 (H.R. 7010) .  This bill modifies several provisions regarding the forgiveness of loans to ease usage restrictions and increase the time businesses are able to utilize PPP funds. Major provisions of the bill include:   An extended forgiveness period, which gives businesses the option to extend the covered period from the original eight weeks to twenty four weeks beginning on the date of origination of a covered loan to December 31, 2020 (twenty-four weeks). An extension of the Jun 30th safe harbor for rehiring employees. A reduced payroll spending requirement from 75% to 60%. An extended… read more »

The much anticipated Paycheck Protection Program (PPP) Loan Forgiveness Application was released by the U.S. Small Business Administration with input from the U.S. Department of Treasury. The PPP was part of the CARES Act and created to support eligible small businesses with forgivable loans to keep Americans working during the COVID-19 pandemic.  Businesses can seek forgiveness at the end of an eight-week covered period that began with the disbursement of their PPP loan. To apply for forgiveness, the PPP loan borrower must complete the application and submit it to the lender that is servicing their loan.  The application includes the following… read more »

The Small Business Administration (SBA), together with the Department of the Treasury, continue to offer additional guidance regarding the implementation of the Paycheck Protection Program (PPP), established by section 1102 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The guidance is offered in a Frequently Asked Questions format (see link below). Paycheck Protection Program Loans FAQs This resource is reliable since it contains SBA’s interpretation of the CARES Act and of the Paycheck Protection Program Interim Final Rules (see link below). The U.S. government will not challenge lender actions that conform to the PPP guidance found on… read more »