Updates on federal relief funding for small businesses: What’s next on the docket
Federal relief programs for small businesses are slowly coming to an end, and with only a few months left in the year, we’ve put together a list of resources that may have already expired or are about to expire.
What’s still available
SBA’s Economic Injury Disaster Loans
The Economic Injury Disaster Loan (EIDL) program is still accepting new applications for COVID-19 Economic Injury Disaster Loans. EIDLs are low interest loans of up to $2 million that are available to pay for expenses that could have been met had the disaster not occurred, including payroll and other operating expenses. If you have previously applied and not heard a decision, do not reapply.
SBA’s 7(a) Loan Program
The 7(a) loan program is the SBA's primary initiative for providing financial assistance to small businesses. The terms and conditions, like the guaranty percentage and loan amount, may vary depending on the type of loan you may choose to pursue to fit your small business needs. While the SBA was forgiving up to six months of principal and interest for new 7(a) loans, that program expired at the end of September.
Targeted EIDL Advance Grant Programs
As the SBA agency works to provide further economic relief for the smallest and hardest hit businesses across the United States, the Targeted EIDL Advance program and the Supplemental Targeted Advance continue to provide additional relief to eligible business owners located in underserved communities and who have been hard-hit by the COVID-19 pandemic. Although the programs will expire on December 31, 2021, the SBA is urging business owners to submit their Supplemental Advance applications by December 10.
Paycheck Protection Program Loan Forgiveness
The SBA launched a Payment Protection Program (PPP) Direct Forgiveness Portal to help streamline the forgiveness process for loans of $150,000 or under, and allow small business owners to apply directly through the SBA. Learn about the Direct Forgiveness Portal here.
Additionally, the SBA implemented the Revenue Reduction Score to help streamline the review of revenue reduction documentation.
Employee Retention Credit
The federal government created the Employee Retention Credit (ERC) in response to the detrimental effects of the COVID-19 pandemic on small businesses. The ERC offers tax credits to encourage more businesses to retain employees during the pandemic, as a temporary measure.
What you may have missed
Shuttered Venue Operators Grant
Though the Shuttered Venue Operators (SVO) Grant is no longer accepting new applications, the SVO portal remains open to all active applicants and awardees. The SBA announced a supplemental grant program for SVO grant recipients, and will be sending invitations for supplemental awards. SVO supplemental awards will be provided to grant recipients who received an initial grant and can demonstrate a 70% loss when comparing 2021’s first-quarter revenues to the same in 2019.
Restaurant Revitalization Fund
The Restaurant Revitalization Fund (RRF) provided relief funding for restaurants and bars affected by the COVID-19 pandemic. The RRF, which was established by the American Rescue Plan, offered $28.6 billion in grants for small businesses in need. This program is no longer accepting applications but we will continue to update this blog, should Congress allocate additional funding for this program.