A new round of emergency funding was approved in the latest COVID relief bill to assist businesses struggling during the pandemic. This includes another round of PPP loans in addition to programs offered by the Small Business Administration to assist hard-hit performance venues. The Historic Core BID is always available as a resource to help navigate what programs you might be eligible for.
I already received a PPP loan in the first round, can I apply again? Yes. Both new recipients and those who received a loan in the first round are eligible for PPP loans.
Where can I apply? Applications will be available through your financial institution. Many major banks have a dedicated COVID relief section on their homepage.
When can I apply? Applications are available now to a small number of financial institutions in historically low-income areas. It is anticipated that applications will be available at all banks and credit unions on the week of January 18th.
Do I qualify? To be eligible for a PPP loan you CAN NOT be a publicly-traded company or have more than 300 employees. You also must demonstrate that you have had at least a 25 percent decline in revenue from either the first, second, or third quarter in 2019 to the same quarter in 2020.
How much money could I receive? Approved PPP applicants will receive 2.5 times the amount of their average monthly payroll in 2019. Restaurants are eligible to receive 3.5 times the average monthly payroll.
Is this loan forgivable? Yes. To qualify for loan forgiveness, you must use at least 60% of the funds you receive on employee payroll. The other 40% can be used for mortgages, rent payments, and utilities, along with a handful of newly approved expenses. In this round of funding, these include funds being used for the purchase of personal protective equipment, expenses for mitigating the spread of COVID-19, and repairs for damages that occurred during this summer’s period of civil unrest.
Are expenses paid for with PPP funds tax deductible? Yes. This is a key difference between this round of funding and the previous round. Expenses paid for with PPP funds can still be used as a tax deduction on your 2021 tax return.
I still have additional questions about obtaining a PPP loan who should I ask? The Historic Core BID is happy to connect you with the right people at the city, county, state, and federal levels.
SHUTTERED VENUES GRANTS FAQ:
What is a shuttered venue grant? In the latest relief bill, the federal government set aside $15 billion for performance venues and associated professionals that have been closed or have lost revenue due to the pandemic. The program will be administered through the Small Business Administration. Applications are expected to be available soon.
What qualifies as a performance venue or associated professional? Musical performance venues, live venue operators, promoters, theater producers, performing arts, motion picture theaters, qualified museums, and talent representation qualify to apply for the grant.
Do I qualify? To be eligible for the grant you must have been fully operational by February 29, 2020. You must have experienced a 25% drop or greater in gross revenue for any quarter in 2019 to the corresponding quarter in 2020. You must have resumed or intend to resume operations, must have no more than 500 full-time employees, operate venues in no more than 1 country or 10 states, and you must have traditionally charged for admission, tickets, or covers for performances.
How much money could I receive? Grants will be awarded for 45 percent of lost revenue to a maximum amount of 10 million dollars for operators or entities that were in business by January 1, 2019. For those in business after that date, the amount equal to the average monthly “gross earned revenue” for each full month the grantee was in operation during 2019, multiplied by six also to a maximum of 10 million dollars.
How will the SBA decide who receives the grants?
First-Priority Grants: During the initial 14-day period in which the SBA awards Grants, only eligible grantees with a 90 percent or more loss in “revenue” during the nine-month period beginning on April 1, 2020, and ending on December 31, 2020, in comparison to the same period in 2019, are eligible to receive funds.
Second-Priority Grants: During the 14 days immediately after the initial 14-day period, only eligible grantees with a 70 percent or more revenue loss during the same nine-month period, are eligible to receive funds. The term “revenue” for this and the initial 14 days excludes amounts received under the CARES Act.
General: The above priority Grants cannot exceed 80 percent of the initial $15 billion appropriated under the Act. After the first 28 days of disbursement, the SBA may award a Grant to any eligible person or entity.
Can I receive a PPP loan and a shuttered venue grant? No, entities who receive a PPP loan are not eligible for an SBA shuttered venue grant.
Lastly, you can NOT get both a grant and a PPP loan.
The city, county, and state are expected to introduce additional programs to assist small businesses in the coming days and weeks. The Historic Core BID will stay on top of these programs and their rollout for you. All Historic Core Business owners are welcome and encouraged to contact us to help find programs that specifically fit their business.