AED Foundation & SkillsUSA Illinois Support Skilled Trades
Jessica Schwartz
PPP The Second Time Around
Small businesses struggling from the impact of COVID-19 are getting another round of financial help from the just passed Emergency Coronavirus Relief Act of 2020, a bill that contained $284 billion for the renewed Paycheck Protection Program. (PPP). The new loans will be tax deductible and available to any lawn care and landscape contractor or business with fewer than 300 workers. Sole proprietors, independent contractors and the self-employed are also eligible, and can apply even if they previously applied and were granted a PPP loan from the first round. The PPP loans are designed to provide a direct incentive for contractors and other small businesses to keep their workers on the payroll. In addition to providing relief for first-time borrowers, a second PPP loan for businesses facing significant revenue declines is available to any business operating before February of 2020, that suffered at least a 30% decline in revenues in any quarter of 2020 when compared to 2019. Although the funds were allocated to the Small Business Administration (SBA), a lawn care and landscape contractor can apply through any existing, qualified SBA lender, federally insured depository institution, federally insured credit union or Farm Credit System institution. Overview Of PPP Loans The current bill funds three categories of PPP loans, including: First-time PPP loans for businesses that qualified under the CARES Act but did not get a loan Second-draw PPP loans for businesses that obtained a PPP loan but are now in need of additional funding, and Additional funding for businesses ...
Is Your State Supporting Small Business? A Guide To Loans
Confused as to what state and regional COVID loans might be available to you? Then check out a list of over 400 loans compiled by Best Accounting Software. The report, “US States’ Small Business Support Amid the Coronavirus Pandemic,” also analyzed and ranked the states by amount of aid available. It found: Idaho, Nevada, West Virginia, and Wyoming have no known loans or grants available for small businesses. None of the five bottom ranked states—Idaho, West Virginia, Wyoming, Delaware, and Utah—have offered tax deferrals for businesses, nor did Utah offer suspensions on commercial evictions. In West Virginia, Idaho, Wyoming, and Delaware, court orders postponed all court proceedings and deadlines, thus disabling commercial evictions. Only 26 states have (or have had) a statewide loan available for small businesses, with just 17 introducing grant-based schemes. While all states have received some federal funding in the form of Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) initiatives, some received far more support than others. For example, 25.71% of small businesses received a PPP loan in North Dakota, while just 12.19% received the same in Maryland. The highest percentage of small businesses to have received an EIDL loan advance within one state was 1.18% in Hawaii. The lowest was 0.56% in West Virginia. The top five states for small business support include: California – Two state loans are offered to small businesses in California. The California Disaster Relief Loan Guarantee Program has been allocated $50 million and guarantees up to 95% of ...
Who Got What? PPP Funding Statistics By State So Far
Only 5.7% of small businesses across the U.S. got approved for funding in the initial round of loans from the Paycheck Protection Program, according to a recent report analyzing state numbers from business.org. Using the U.S. Small Business Administration’s (SBA) data, the organization divided the total number of small businesses in each state by the total number of PPP loans funded in each state. (It should be noted, the data does not reflect the actual number of PPP loan applications by state, or the actual dollar amounts awarded to each state.) Unfortunately, many states with larger populations of small businesses were left with a low percentage of loan approvals when the initial PPP funding of $349 billion was exhausted in just 14 days. The top 10 most financed states all have fewer than 500,000 small businesses, whereas many of the least financed states have millions of small businesses. Bottom 10 States For PPP Funding: Rank State Total number of small businesses Total loans funded Percentage of small businesses funded 51 California 4,000,000 112,967 2.80% 50 Nevada 270,079 8,674 3.20% 49 Arizona 571,495 19,280 3.40% 48 Florida 2,500,000 88,997 3.60% 47 New York 2,200,000 81,075 3.70% 46 New Jersey 884,049 33,519 3.80% 45 Washington DC 76,083 3,253 4.30% 44 North Carolina 913,398 39,520 4.30% 43 Maryland 594,124 26,068 4.40% 42 Georgia 1,100,000 48,332 4.40% For instance, of New York’s 2,200,ooo total small businesses, just 81,075 received loans, or 3.7 %. California received the lowest percentage of funding at just 2.8% ...
Applications Reopen For New PPP Funding/Michigan Allows Lawn Work
Applications are being accepted again today for the Paycheck Protection Program (PPP) after the initial $349 billion of funding was exhausted in less than two weeks. On Friday, another $310 billion was added to the PPP program, including $60 billion set aside specifically for small lenders. But many fear this new influx of money will also run short with the hundreds of thousands of applications still pending. “These additional funds will provide badly needed relief for more small businesses on the brink of closure,” said Suzanne Clark, President, U.S. Chamber of Commerce. “Unfortunately, we anticipate these new funds will be exhausted quickly. Congress must start working now on bipartisan solutions to ensure these programs do not lapse again. Small businesses and the families and communities they support are counting on these critical relief programs to help them survive the economic shutdown and get on the path to recovery.” One in four small businesses are on the brink of permanent closure, according to the Small Business Coronavirus Impact Poll released by the Chamber and MetLife. When asked what proposals might offer the most relief, 56% of small business reported direct cash payments to Americans would be the most helpful form of aid from the government, 30% said loans and financial aid, and 21% indicated suspending payroll taxes. In a letter today to Treasury Secretary Steven Mnuchin and Small Business Administrator Jovita Carranza, 2o Democratic and two Independent Senators “urged the Trump administration to publicly disclose the measures it will put in ...
Getting An SBA Economic Injury Disaster Loan (EIDL)
Update On Thursday, April 16, 2020, the SBA announced a lapse in appropriations for the EIDL program related to COVID-19. From its website: “SBA is unable to accept new applications at this time for the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding. Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.” ——— Signed into law on March 6, the Coronavirus Preparedness and Response Supplemental Appropriations Act (CARES) expands the U.S. Small Business Administration’s (SBA) existing Economic Injury Disaster Loans, or EIDL program, to offer $7 billion in loans to small businesses impacted by COVID-19. The U.S. Chamber of Commerce offers the following guidance on the loan. General parameters for eligibility include: businesses with fewer than 500 employees; sole proprietors; independent contractors; cooperatives, ESOPs, and tribal small businesses; and most private non-profits. These loans may be used by small businesses to pay fixed debts, payroll, accounts payable, and additional bills that can’t be paid because of COVID-19’s impact. To provide immediate relief, SBA offers a $10,000 emergency grant designed to be available within three days of applying. (It should be noted: according to articles from Fast Company and The Wall Street Journal published April 7 and 8 respectively, of those who applied early last week when the application went live, many are still awaiting funds.) There is no obligation to repay the grant and it is not necessary to have an approved EIDL loan. ...
Will Federal Aid Be Enough To Save Your Small Business?
Update On April 16, 2020, the U.S. Small Business Administration (SBA) announced it had exhausted allotted funds for the Paycheck Protection Program (PPP). SBA, which administers the PPP, shut down its application and ceased enrolling new lenders into the program. _______ Will federal aid programs be enough to help small businesses, such as landscapers, get through the COVID-19 pandemic? The U.S. Chamber of Commerce (USCOC) is concerned. While the Coronavirus Aid, Relief, and Economic Security (CARES) Act Paycheck Protection Program (PPP) provides $349 billion for small businesses to continue to pay their employees and other bills, loan commitments reportedly already exceed the available funds by 10%, according to the USCOC. And the PPP just began accepting applications for small businesses and sole proprietors on April 3. Independent contractors and self-employed individuals can apply beginning on April 10. The program is open until June 30, 2020. Additionally, an upgraded Economic Injury Disaster Loan (EIDL) program at the Small Business Administration has a $10 billion cap on disaster relief grants, which will support only 1 million businesses and non-profits, says the USCOC. As a result, USCOC Executive Vice President and Chief Policy Officer Neil Bradley sent a letter yesterday to congressional leaders urging quick action for American small businesses should Coronavirus Aid, Relief, and Economic Security (CARES) Act funding not be sufficient after surging demand for those programs. “The U.S. Chamber of Commerce thanks you and the entire Congress for quick action to pass the Coronavirus Aid, Relief, and Economic Security (CARES) ...
PPP (Paycheck Protection Program) Loans For Small Businesses Affected By Pandemic
Last week, the U.S. Small Business Administration (SBA) launched the Paycheck Protection Program, or PPP, a $349 billion emergency loan program created as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES). The PPP provides forgivable loans up to $10 million to small businesses left financially distressed by the COVID-19 pandemic and are administered at the local level by a national network of banks and credit unions. To find a lender, click here. The loans, which are 100% backed by SBA, are being provided to small businesses without collateral requirements, personal guarantees, SBA fees, or credit elsewhere tests. Those eligible for the program include small businesses with fewer than 500 employees, self-employed individuals, independent contractors, certain non-profits, veterans’ organizations, and other businesses meeting size standards based on their North American Industry Classification System code. The PPP will be available through June 30, 2020, though the government is advising borrowers to apply as soon as possible due to a loan cap. (As of this writing, the PPP loan commitments reportedly already exceed the available funds by 10%, according to the U.S. Chamber Of Commerce. On the same day, President Trump addressed the issue at a briefing with members of the White House Coronavirus Task Force and said he is asking Congress to provide an additional $250 billion for the PPP, reported the USCOC.) “We urge every struggling small business to take advantage of this unprecedented federal resource – their viability is critically important to their employees, their community, and ...
