PAYCHECK PROTECTION PROGRAM (PPP)
Meeting with small business owners across the district during COVID, it is clear that the Paycheck Protection Program (PPP) established by the CARES Act last March and expanded in the American Rescue Plan has been a lifeline during this crisis. In fact, $530 million in PPP loans under $150,000 came to NJ-11 in 2020. The new relief package includes $7.25 billion in additional funding for PPP and expands eligibility of 501(c) nonprofits of all sizes and types, except for 501(c)4 lobbying organizations.
The American Rescue Plan also creates a Restaurant Revitalization Fund. $28.6 billion is allocated for this new program at SBA to offer assistance to restaurants and bars with 20 or fewer locations that have been hit hard by the pandemic.
SBA is currently offering PPP loans until May 31, 2021.
To learn more about how to apply, click here.
To learn more about how the Biden Administration has made the program more equitable, click here.
Please also reach out to my office at any time for additional assistance.
ECONOMIC INJURY DISASTER LOANS (EIDL)
Economic Injury Disaster Loans (EIDL) have been another key part of the small business relief throughout COVID, with an excess of $600 million in loans coming to NJ-11 in 2020. The SBA has announced that as a result of the COVID relief legislation signed at the end of December it was extending the application deadline for the EIDL program to December 31, 2021.
The American Rescue Plan includes an additional $15 billion for targeted EIDL Advances to help those who applied for relief in 2020 but did not receive the full $10,000 grant.
The Economic Aid Act also made clarifications about the treatment of EIDL Advance Amounts with respect to the deduction from loan forgiveness (including retroactively) and exclusion from gross income for tax purposes.
The EIDL Advance program is currently closed but was provided with an additional $20 billion through this legislation targeted to certain businesses. We will keep you updated when we have more information on reopening and eligibility requirements.
Click here for more information on the SBA’s announcement of the extended EIDL deadline.
Click here to learn more from the SBA’s EIDL page.
Click here for details from the House Committee on Small Business on the deduction and taxation clarifications for EIDL Advance Amounts in the Economic Aid Act or here for a section by section summary of the legislation.
Additional Small Business Resource Organizations:
NJ Small Business Development Center
The New Jersey Small Business Development Center is continuing to provide training and counseling programs remotely. They have also listed resources for businesses impacted by coronavirus on their website. SBDCs across the country were provided with additional funds under the CARES Act to assist business owners with loan programs and coronavirus concerns.
New Jersey COVID-19 Business Information
The State of New Jersey’s Business Information website has up-to-date information on relief programs, reopening rules & guidelines, and workplace health and safety standards
Women’s Center for Entrepreneurship Corp.
The WCEC is a New Jersey affiliate of the Women’s Business Centers, a national nonprofit network that provides support for women entrepreneurs. WBCs around the country were provided with additional funding under the CARES Act to assist businesses in navigating the coronavirus.
New Jersey Business & Industry Association
New Jersey Restaurant & Hospitality Association
Main Street America
This organization focuses on economic issues impacting downtown communities. For information specific to Coronavirus, visit their website.