The following is general information provided during the Governor’s Small Business Webinar. We always recommend that borrowers consult with an accountant, attorney, or advisor for specific advice.
Masterplan attended the Governor’s Small Business Webinar: Updates on the New Round of PPP Funding & Disaster Resources on March 3, 2021. It was an informative meeting where state officials answered some basic FAQs as well as took live questions from those attending the webinar. State officials were active and engaged in answering pertinent questions regarding small businesses and how small businesses could take advantage of the second round of PPP.
While the majority of the requirements remained the same, there must be a continual reduction (25%) in gross receipts quarter to quarter in comparison to pre-COVID-19 receipts. This is a constant that will enable small businesses to continue asking for funding to keep their businesses active and operational. A large majority of businesses applied for the first round of PPP funding, and the time is closing for the second round of funding.
The SBA created a special timeframe for the very smallest businesses to apply for PPP. March 9, 2021, is the last day for the second round of relief if your business has less than 20 employees on its payroll. You can submit post-March 9, but your relief will not arrive as quickly if you do not apply before that date. The program will be open to all eligible entities from March 10 – 31, 2021. In addition to the PPP funding, EIDL (Economic Injury Disaster Loans) loans are available until December 31, 2021, or until funds are depleted.
Key takeaways from the webinar:
- If you have not received loan forgiveness from the first round of funding, you are still eligible to apply for the second round of funding
- You have 10 months to ask for forgiveness after the initial pay period is up
- No explicit dollar amount will be forgiven, but a portion of the loan you received could be forgiven
- If you formed a business post-February 15, 2020, you are ineligible for PPP funding
- However, if you purchased an existing business after that date, you could still be eligible with proper documentation
- Keep detailed documentation, including paperwork, phone calls, and emails
- If you were unable to open because you followed local guidance, you could qualify for a safe harbor
Additional detailed information from the webinar can be found at:
- Governor’s Small Business Webinar Series: https://youtu.be/erCDS5Lswh8
- Governor’s Small Business Assistance Team: firstname.lastname@example.org
- Governor’s Small Business COVID-19: gov.texas.gov/business/page/coronavirus
SBA Disaster Resources:
- Disaster loans: https://disasterloanassistance.sba.gov/ela/s/
- Fact sheet on Texas winter storm disaster loans: https://disasterloanassistance.sba.gov/ela/sfc/servlet.shepherd/version/download/068t000000KQ5qdAAD
- The SBA Virtual Business Recovery Center and Virtual Disaster Loan Outreach Center may be reached Monday through Friday between 7 a.m. and 7 p.m. by calling (800)-659-2955 or emailing FOCWAssistance@sba.gov