Pursuant to the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act (the “Economic Aid Act”), on January 11, 2021 the latest round of Paycheck Protection Program Loans rolled out, with priority being given by the Small Business Administration via Community Development Financial Institutions, Minority Depository Institutions, Certified Development Companies and Microloan Intermediaries (“Priority Lenders”), to their customers that did not receive a funding under the original Paycheck Protection Program. On January 13, 2021, the program will expand to the Priority Lenders and the customers seeking a second loan under the Economic Aid Act. The programs will be opened to all participating lenders shortly thereafter. The Paycheck Protection Program, which was originally established under the CARES Act, provides loans to eligible borrowers to pay payroll costs, including benefits during the covered period as set forth in the regulations. Funds may also be used to pay other certain specified expenses of the business.
Continue Reading The Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act Provides Round Three of PPP Loans
Finally Positive News for Nonprofits: $900 Billion COVID-Relief Package Has Been Approved by Congress
On December 21st, 2020, Congress approved the second-largest federal stimulus package after the $2 trillion CARES Act that was passed in March 2020. This new COVID-relief package is in the amount of $900 billion, and will ensure that the public has a faster vaccine distribution, and will give aid to those who have lost their jobs and to small businesses that have been extremely affected by the pandemic. With this in mind, the Paycheck Protection Program (PPP) has reopened for small businesses as well. Since applications for the first PPP program were only being accepted until August 2020, this second round of loans from the COVID-relief package could possibly save thousands of businesses across the country. For the full text of the new bill, click here.
Continue Reading Finally Positive News for Nonprofits: $900 Billion COVID-Relief Package Has Been Approved by Congress
Phase 3 of NJEDA Small Businesses Emergency Assistance Grant Program
On October 14, 2020, the New Jersey Economic Development Authority (“NJEDA”) announced Phase 3 of the NJEDA’s Small Business Emergency Assistance Grant Program. Pre-registration for eligible businesses for Phase 3 funding opens TODAY (October 19, 2020) and can be done on NJEDA.com.
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The NJRA Will Launch the Small Business Lease Emergency Assistance Grant Program
The New Jersey Redevelopment Authority (“NJRA”) will launch the Small Business Lease Emergency Assistance Grant Program on August 10, 2020. The program will allow businesses in 64 eligible municipalities to apply for grants of up to $10,000 for lease costs. The program will assist small business owners impacted by the COVID-19 pandemic, which also assists landlords, many of whom are also small businesses. Grants will be made on a first come, first serve basis.
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Paycheck Protection Program Extension
Late Tuesday June 30, 2020, just a few hours before the expiration of Paycheck Protection Program (PPP), the Senate voted to extend the PPP five more weeks. The move was made to allow eligible small businesses that have not applied or been denied a loan under the PPP more time to claim the remaining $129 million in the program.
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Update to PPP Loan Forgiveness Application
The Small Business Administration (SBA) released updates to the Paycheck Protection Program loan forgiveness application. A majority of the updates reflect the changes from the Paycheck Protection Program Flexibility Act (Flexibility Act). You can find our alerts regarding the Flexibility Act here and the SBA’s Updated Interim Final Rule here.
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Paycheck Protection Program Update
On June 11, 2020, the Small Business Administration (“SBA”) issued an additional Interim Final Rule to amend the First Interim Final Rule that was issued April 2, 2020. The June 11th Interim Final Rule was released to reflect the modifications to the Paycheck Protection Program (PPP) by the Paycheck Protection Program Flexibility Act (“Flexibility Act”) that we summarized here. Most of the June 11th Interim Final Rule is a reiteration of the Flexibility Act, however the Interim Rule provides a clarification concerning payroll costs and loan forgiveness.
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Paycheck Protection Program Flexibility Act
On June 3, 2020 Congress passed the Paycheck Protection Program Flexibility Act (the “Flexibility Act”). Below are some of the highlights from the Flexibility Act:
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Second Update: New Jersey Small Business Assistance Grant
As previously posted in our May 16th alert, the New Jersey Economic Development Authority (“NJEDA”) announced an additional $50 million from the federal government to replenish the New Jersey Small Business Assistance Grant program that was established to help those small businesses impacted by COVID-19.
On May 22, the NJEDA board voted to expand the program to provide grants up to $10,000 to qualified businesses and expand eligibility requirements. Additionally, the NJEDA voted to reserve $15 million for businesses in Opportunity Zones.
Continue Reading Second Update: New Jersey Small Business Assistance Grant
PPP Loan Forgiveness Application Released
The Small Business Administration (SBA) recently published the borrower application to request loan forgiveness for a Paycheck Protection Program loan (PPP Loan). The form and instructions inform Borrowers how to apply for forgiveness of their PPP Loans, consistent with the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
Borrowers can apply for forgiveness at the conclusion of the eight-week covered period, which begins with the disbursement of their loans. Borrowers can find the PPP loan forgiveness application here and submit it to their Lender.