Update for Business Restrictions

As of May 24th, 2021, businesses are no longer required to have a capacity limit or social distancing requirements for all outdoor settings. For indoor settings where masks must be taken off to either eat or drink, social distancing and capacity limits still apply. Masks are not required indoors for all vaccinated persons, and unvaccinated people are recommended to wear a mask indoors. Businesses can implement mask policies for their customers and workers or require proof of vaccination to forgo wearing a mask indoors.


What is the Payroll Protections Program(PPP)?

The Payroll Protections Program(PPP) is a program put into effect by the Small Business Administration to help small businesses pay for rent, utilities, mortgage interest, worker benefits and protection, uninsured property damage from looting or vandalism in 2020 and payroll costs. The aim of this program is to keep workers employed during these hard times.

Explore Covid-19 Relief Options Here, or keep reading for some common relief options below.

 

 

Economic Injury Disaster Loan

Because of the Coronavirus (Covid-19)  pandemic, small business owners across the United States, District of Columbia, and U.S. territories have the opportunity to receive this loan advance that does not have to be paid back. The loan can be up to $10,000, and will be given upon the completion of application. To be eligible the small business must employ less than 500 employees. Some businesses with over 500 employees may qualify for this loan advance if they meet the SBA’s size standards for certain industries.

  1. Apply for the Economic Injury Disaster Loan Here
  2. For a more detailed account of this program, scroll to the end of the linked website

First Draw Loans

First Draw PPP Loans are offered to small businesses that have not already accepted a loan from the PPP previously and are provided for 8-24 weeks. In order to be eligible for First Draw Loans, your business must employ less than 501 people, and you must apply before May 31st, 2021. 

Small businesses qualify for full loan forgiveness if they: 1. Maintain employee compensation for the 8-24week period, 2. Spend their loaned money on payroll and other eligible expenses, and 3. Spend at least 60% of their loan proceeds for payroll costs.

Calculate your maximum First Draw PPP for your specific business and learn about what types of documentation you need using the first link below this section.

For some more in-depth information about First Draw PPP Loans, check out the second link below this section 

  1. How to calculate your maximum First Draw PPP Loan amount
  2. Detailed information about First Draw PPP Loans
    • *Note, under the “How & When to Apply” the date will say March 31st, but the date has been extended to May 31st. 
  3. Find PPP Lenders Here
  4. Learn how to Apply for Loan Forgiveness Here

Second Draw Loans

Second draw loans are for businesses who already claimed their First Draw PPP Loans, but are still in need of financial assistance during these hard times. In order to qualify for a Second Draw PPP Loan, your business must have claimed a First Draw PPP Loan, have or will have used all funds from the First Draw PPP Loan for authorized uses, have less than 301 employees, and show a 25% decrease in gross receipts (total amount of all cash or property receipts excluding expenses and deductibles) compared to quarters in 2019 and 2020. 

To qualify for full loan forgiveness for the 8-24 week period, your business must: 1. Have the same compensation and employee amount required by the First Draw Loan 2. Spend loans on payroll costs and other eligible expenses, and 3. Have at least 60% of their loan spent on payroll costs.

Check out the first link below this section to see what documents your business needs to provide for a Second Draw PPP Loan, as well as some other useful information like an explanation of how gross receipts need to be calculated for the Second Draw PPP Loan.

For more in depth information about Second Draw PPP Loans, check out the second link below this section

  1. How to calculate your maximum Second Draw PPP Loan amount
  2. Detailed information about Second Draw PPP Loans
    • *Note, under the “How & When to Apply” the date will say March 31st, but the date has been extended to May 31st.
  3. Find PPP Lenders Here
  4. Learn how to Apply for Loan Forgiveness Here