The first part of this article deals with the federal Small Business Administration’s Paycheck Protection Program. ~~ The second part deals with the State of Colorado PPP / Boulder and Larimer County.
The Small Business Administration has released guidance and regulations for the newest Paycheck Protection Program loans. The total amount is $284.45 billion. Some local counties are already sending out information so that small businesses can gather information and materials needed. (see Boulder and Larimer County information below). The deadline will be March 31, 2021.
Note, you can still apply for your first PPP loan. It can be used to help fund payroll costs, including
benefits. Funds can also be used to pay for mortgage interest, rent and more. (See the documents regarding reapplying, loan forgiveness, and more.)
Although the loans are open to those with 500 employees or less, the SBA has stepped up to be especially mindful of those businesses with ten or less employees. It set aside $15 billion for them. The old program allows loans up to $10 million and now do not need to show the same 25 percent year-over-year revenue drop. With the new, second wave of loans, the government has limited the loan to a max of $2 million, which should deter those very large businesses from eating up the SBA’s budget this time.
Another safeguard to make sure the loans are going to SMALL businesses is to promote widespread community access to capital. Initially only community financial institutions will be able to make First Draw PPP Loans on Monday, January 11, and Second Draw PPP Loans on Wednesday, January 13. The PPP program will open to all participating lenders shortly thereafter.
Eligible lenders of the first two draws of PPP loans are one of four types:
- Community Financial Development Institution (CDFI)
- Minority Depository Institution (MDI)
- Community Development Corporation (CDC)
- Microlender Intermediary
Review this list of participating Colorado Community Development Financial Institutions.
- The “first” loans can now use either the 2019 or 2020 financials to prove that their finances have drastically changed.
- Small businesses that are temporarily closed or suspended can still apply for this second round of loans. And, are still eligible for a second PPP loan.
- Another proof that dealing with the same bank and knowing your banker is a good thing: if the small businesses use the same lender/bank, it will most likely not have to provide any additional documents. However, lenders may still require additional information.
- Independent contractors can still apply for a PPP loan on their own.
SBA web pages to help you:
- 1st Draw PPP Loans: For qualified recipients that have not previously received a PPP loan https://www.sba.gov/document/sba-form-2483-ppp-first-draw-borrower-application-form
- 2nd Draw PPP Loans: For qualified recipients that have previously received a PPP loan https://www.sba.gov/document/sba-form-2483-sd-ppp-second-draw-borrower-application-form
- Eligible PPP expenses for forgiveness have been expanded
- Guidance on Accessing Capital for Minority, Underserved, Veteran
and Women-Owned Businesses
- Changes to Employee Retention Tax Credit
- EIDL and the EIDL Advance program are re-opening for target areas. Information is forthcoming from SBA.
- Shuttered Venue Grants: Businesses who qualify for this grant cannot receive this grant and new PPP funds. They will need to make a decision as to which funding source makes the most sense for their business.
STATE OF COLORADO:
BOULDER & LARIMER COUNTY
Locally owned small businesses are eligible for a one-time relief grant. The amount of the grant will vary, based on the size of the business, demonstrable losses, and number of applicants. —- the list includes restaurants, bars, breweries, distilleries, wineries, caterers, movie theaters, fitness or recreation centers. The payments range between $3,500 and $7,000 depending on whether you earn less than $500,000, between $500,000 and $1 million, or up to $2.5 million in 2019.
Application for Small Business Assistance Program is open (Please be sure to read these pages in their entirety):
Larimer County: For more information and to apply, visit: www.larimer.org/sbr Last date to apply: Wednesday January 27, 2021 Funding decisions will be made on or around February 1, 2021. Relief grants will be issued by February 12, 2021.
Boulder County: The online application website Apply by 5 p.m. on Friday, January 29, 2021.
Applicants will be required to provide additional information to confirm program eligibility and assist the county in understanding the economic impact of the pandemic. More information on how to apply and the eligibility requirements is available at https://boco.org/state-funded-small-business-c19-grants. Successful grantees will receive the grant award on or before Feb. 11, 2021.
THE FUTURE OF SMALL BUSINESSES:
- Larimer SBDC is a consulting firm to help you with your business. https://larimersbdc.org/what-we-do/consulting/ They support the growth and resiliency of small businesses by providing free confidential business consulting, practical workshops & events and connection to resources, including financing. Established in 1989.
- The North Colorado recovery team and Colorado State University got together to develop a plan to help people think further ahead to keep their businesses alive “knowing that getting back to normal may take a very long time and may never happen.” See this article to learn about the “pivot” —a menu of changes that people can make to sustain or expand their businesses. Go to https://biz.colostate.edu/partnerships/pivot-larimer-county or to the Denver Post article “Will small businesses be a casualty of the pandemic?”
COLORADO ARTS RELIEF FUND: See our “Support for Artists” articles for future grants. The $7.5 million one closed January 8. We also put these dates in our FLASH NEWS calendar page.
You can check out this one that has a “rolling deadline” and is still “online” on January 14, 2021: https://oedit.colorado.gov/colorado-artist-relief-fund?fbclid=IwAR2U1ZWPwizoSVZ9NhonSbi-jFGukxFfVjlQ8dFqP85skzQ7tOIoIc1FNsY