Paycheck Protection Program Re-Opening

Paycheck Protection Program Re-Opening Monday for First Draw Borrowers. 

Webinar on New PPP Tonight @ 5:00 pm

 
We at the Utah SBDC are working to get you relevant info and events…
 
Webinar on New PPP | Tonight @ 5:00 pm
 
When: Tonight (Monday, January 11th) at 5:00 pm
Where:GOED Facebook or YouTube page
 
 
The following info is copied from the SBA Utah District Office emai letter dated January 9th, 2021
 
Paycheck Protection Program Re-Opening Monday for First Draw Borrowers
 
Second Draw PPP Set for Jan. 13
 
SBA will be accepting applications again for loans under its Paycheck Protection Program starting Monday, Jan. 11, 2021. To promote access to capital, only community financial institutions will be able to make First Draw PPP Loans on Monday and Second Draw PPP Loans starting Wednesday, Jan. 13, 2021. The PPP will open to all participating lenders shortly thereafter. 
 
Please note the following information is now located on www.sba.gov/ppp :
 
Updated First Draw Forms
 
Second Draw Forms
 
Guidance & Resources
 
SBA Procedural Notice 5000-20074 – Modifications to SBA Forms 3506, 3507, and 750 CA (for purposes of PPP only)
 
SBA Procedural Notice 5000-20075 – Repeal of EIDL Advance Deduction
 
Requirement for SBA Loan Forgiveness Remittances to PPP Lenders
 
Reminder:
 
Community Financial Institutions (CFIs) will be able to submit First Draw (first time) PPP loans starting Monday. 
 
Second draw (second time) loans starting next Wednesday.
 
Per the Economic Aid Act, a Community Financial Institution (CFI) is one of the four types of lenders.
  • Community Financial Development Institution (CDFI)
  • Minority Depository Institution (MDI)
  • Community Development Corporation (CDC)
  • Microlender Intermediary
 
Correction:
 
Eligibility has been expanded to include 501(c)(6)s, housing cooperatives, destination marketing organizations, among other types of organizations; not direct marketing organizations as previously stated.
 
 
More Detailed Info:
 
 
The Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act
325 Billion earmarked for Small Business
 
The Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act is a $325 billion aid package providing additional assistance to the hardest-hit small businesses, nonprofits and venues that are struggling to recover from the impact of the COVID-19 pandemic.
 
The act provides funding for a second round of forgivable loans through the Paycheck Protection Program for small businesses and nonprofits experiencing significant revenue losses, implements programmatic improvements to PPP, funds grants to shuttered venues, and enacts emergency enhancements to other U.S. Small Business Administration lending programs.
 
 
The main points of the new Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act
 
 Paycheck Protection Program Second Draw Loans:
 
  • Creates a second round of PPP loans for eligible businesses.
  • Defines eligibility for the PPP second draw as small businesses that have no more than 300 employees and demonstrate at least a 25 percent reduction in gross revenues between comparable quarters in 2019 and 2020.
  • Establishes a maximum loan size of 2.5X average monthly payroll costs, up to $2 million.
  • Allows small businesses assigned to the industry NAICS code 72 (Accommodation and Food Services) to receive PPP second draw loans equal to 3.5X average monthly payroll costs in order to helps these businesses combat onerous State and local restrictions.
  • Maintains existing expansions in eligibility for businesses assigned to the industry NAICS code 72 (Accommodation and Food Services).
  • Borrowers receive full loan forgiveness if they spend at least 60 percent of their PPP second draw loan on payroll costs over a time period of their choosing between 8 weeks and 24 weeks.
  • Affirms the eligibility of churches and religious organizations and prohibits a future administration from making them ineligible.
  • Preserves the application of affiliation rules to nonprofits, which makes Planned Parenthood ineligible.
  • Includes set-asides to support first-time PPP borrowers with 10 or fewer employees, second-time PPP borrowers with 10 or fewer employees, first-time PPP borrowers who have been made newly eligible, and second-time returning PPP borrowers. Additionally, provides for a set-aside for loans made by community lenders.
 
Paycheck Protection Program Improvements:
 
  • Expands PPP allowable and forgivable expenses to include supplier costs on existing contracts and purchase orders, including the cost for perishable goods at any time, costs relating to worker protective equipment and adaptive costs, and technology operations expenditures.
  • Provides needed assurances to PPP lenders that no enforcement action could be taken against a lender who originated the loan in good faith, complied with all regulations, and relied in good faith on a borrower’s certification and documentation.
  • Enhances borrower flexibility by allowing borrowers to select their loan forgiveness covered period between 8 weeks and 24 weeks.
  • Simplifies the forgiveness application process for smaller loans up to $150,000 while increasing SBA’s ability to audit and review forgiven loans.
  • Allows PPP borrowers to include additional group insurance payments when calculating their PPP payroll costs. This would cover insurance plans such as vision, dental, disability and life insurance.
  • Allows borrowers who returned all or part of their PPP loan to reapply for the maximum amount applicable. It also allows lenders to recalculate borrower’s loan amounts due to changes in regulations regardless of whether SBA Form 1502 has been submitted.
  • Establishes the loan amount calculation for farmers and ranchers to better align with recent years’ income.
  • Provides Farm Credit System Institutions with greater certainty and equity in PPP lending participation.
  • Defines “seasonal employer.”
  • Expands PPP eligibility for certain 501(c)(6) nonprofits and Destination Marketing Organizations with 300 or fewer employees that do not receive more than 15 percent of their revenue from lobbying.
  • Expands PPP eligibility to local newspapers and T.V., and radio stations previously made ineligible by their affiliation with other stations.
  • Establishes a procedure in the bankruptcy process if the Administrator determines certain small business debtors in Chapter 11 are eligible for PPP loans.
  • Eliminates the requirement that EIDL advances be subtracted from PPP forgiveness.
 
 Emergency Enhancements to SBA’s Lending Programs
 
  • Temporarily enhances the terms of the 7(a) loan program by increasing the loan guarantee to 90 percent and offering reduced or no fees for the borrower and the lender. Additionally, it would temporarily increase the 7(a) express loan limit and loan guarantee to provide access to needed working capital.
  • Temporarily eliminates fees for the 504 loan program and favorable terms for refinancing loans.
  • Increases the aggregate loan limit for microloan intermediaries in order to ensure intermediaries have increased capacity to make loans to underserved and underbanked borrowers.
  • Extends the Small Business Debt Relief program, Section 1112 of the CARES Act, which would defer payments of principal and interest on new and existing SBA 7(a), 504, and Microloan programs for eligible entities.
 
Increased Transparency and Accountability in SBA Programs:
 
  • Mitigates fraud by requiring new measures for the SBA to verify eligibility for EIDL Advance grants.
  • Appropriates $20 million to the SBA Inspector General to prevent fraud, waste, and abuse in the Targeted EIDL Advance grant program.
  • Increases transparency of SBA’s PPP forgiveness audit and review process by requiring the SBA to submit a detailed forgiveness audit plan to Congress within 30 days of enactment. Appropriates $50 million to support SBA’s PPP audit authority.
  • Requires the SBA Administrator and the Secretary of the Treasury to testify within 120 days of enactment and twice a year for two years to the Senate and House Small Business Committees.
  • Requires the SBA to comply with GAO requests within 15 days unless the Administrator provides the Senate and House Small Business Committees with a detailed justification for the inability of the Administrator to comply.
  • Codifies the list of ineligible businesses for PPP, which includes: publicly-traded businesses; entities listed in 13 C.F.R. 120.110 except for entities from that regulation which have otherwise been made eligible by statute or guidance; entities affiliated with entities in the People’s Republic of China; registrants under the Foreign Agents Registration Act; and entities that are receiving a grant under the live venues grant program.
  • Prohibits PPP loan proceeds to be used for lobbying activities.
  • Requires the President, Vice President, the head of an Executive department, or a Member of Congress as well as their spouse to disclose this status when receiving forgiveness on a Paycheck Protection Program initial loan. Prohibits these individuals from obtaining a future PPP loan.
 
Support for Venues:
 
  • Establishes a $15 billion grant program to support shuttered live venues, theaters, museums, and zoos that have experienced significant revenue losses.
  • Provides enhanced verification and requires increased transparency of SBA’s oversight plans to ensure funds are directly benefiting eligible entities.
 
Increased Appropriations: $325 billion
 
  • $284.45 billion for Paycheck Protection Program Second Draw Loans.
  • $25 million for Minority Business Development Centers under the Minority Business Development Agency (MBDA) to assist minority business enterprises with technical assistance, such as applying for PPP.
  • $50 million to SBA for PPP auditing and fraud mitigation purposes.
  • $15 billion for grants for shuttered live venues, theaters, museums, and zoos.
  • $20 billion for the EIDL Advance program, of which $20 million is for the SBA Inspector General.
  • $3.5 billion for continuing the Section 7(a) Debt Relief program.
  • $2 billion to carry out SBA lending enhancements.
  • Of this amount, $57 million for the Microloan program for technical assistance and direct lending to underserved borrowers.
  • Rescission of Unobligated Funds: $146 billion
  • Rescinds $137.5 billion in unobligated funds from PPP.
  • Rescinds $9 billion in unobligated funds from Section 1112 of the CARES Act.
 
If you have questions or would like to speak with a business advisor at the SBDC, contact Christine Rice at [email protected] or Bryce Hansen at [email protected]. You may also call the Salt Lake SBDC office at 801-957-5441.
 
If you are a veteran and need assistance, contact Rick Brown, business advisor for the Veterans Business Resource Center at [email protected] or 801-957-5288.
Startup SLC podcast image
 
Check out some of our great local entrepreneur stories, including Rico Brand, Buzzed Coffee, Majelco Medical, and more!
 
 
Other Relevant Info & Events in the Community
 
The following events are not organized by the Salt Lake SBDC. Please contact the organizers directly with any questions. 
 
Stay tuned for other community events in January 2021…
 
Utah Governors Office of Economic Development
 
Funded in part through a Cooperative Agreement with the U.S. Small Business Administration.
 
If you need accommodations under the American with Disabilities Act (ADA) for a scheduled SBDC event, call the SL SBDC at 801-957-5441. We require notification no later than 10 calendar days before the date of the scheduled event.

Merry Christmas

We hope everyone has a merry Christmas and a safe and happy New Year!


Public Hearing Notice

Town council to consider 6 ft. barrier wall on east side boundary of the park along the highway.  This public hearing is to talk about the possibility of getting grant money from a Community Developement Block Grant.  The public is invited to come and ask question. 


HAPPY THANKSGIVING

Happy Thanksgiving!  My we all take a second to think of all the things we are thankful for this year.  Hope everyone has a safe and happy Thanksgiving.


Veterans Day

Thank you to all our brave Veterans for your service to this great nation!  We are very greatful for your sacrifice to keep us safe and free.  


HEAT Assistance Available for utlities

There is HELP available for home energy bill.  The Home Energy Assistance Target (HEAT) program is designed to help low-income households with energy costs.  For eligibility requirements, visit:  jobs.utah.gov/heat or call 888-255-9692. 


Vaccine Clinic

Levan Town will host a vaccine clinic on Thursday, August 27, 2020 from 4:00 – 6:00 pm.  Mark the date on your calendar if you have the need.


Census 2020

Dear Resident,

  Please participate in the 2020 Census today!  We are encouraging everyone to complete the Census.  By being counted in the 2020 Census, you will help determine federal funding for school programs, emergency services, and roads in our area.  It also helps to dtermine Congressional representation for the State of Utah.

  You can respond to the Census online or by phone.  Start by visiting 2020CENSUS.GOV or by calling 844-330-2020.  Federal law keeps your responses safe so that you can take the 2020 Census with peace of mind.  We all count, and we all get a chance to shape our future by participating in the 2020 Census.


GreenXchange Program

Are you interested in cleaner air?
We have come together to encourage people to switch gas-powered lawnmowers and snowblowers for electric ones under a new program called GreenXchange. The GreenXchange program is designed to reduce air emissions produced by gas-powered yard equipment and improve air quality. Any electric utility customer that lives in Levan Town can receive a rebate up to $300 for exchanging their gas-powered yard equipment for new electric-powered equipment. These cities are committed to reducing air pollution in our communities and encouraging more clean air for the future.
Click on the link to access the form and get more information!