Paycheck Protection Program (PPP) is open to taking first draw applications
SBA, in consultation with the U.S. Treasury Department, has opened the Paycheck Protection Program loan portal on Monday, January 11, 2021 at 9 am ET. It will initially accept First Draw PPP loan applications from participating CFIs, which include Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), Certified Development Companies (CDCs), and Microloan Intermediaries.
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.
SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses.
How To Apply
You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program.
If you wish to begin preparing your application, you can download the following PPP borrower application forms to see the information that will be requested from you when you apply with a lender:
Rural Small Business Relief Grant Opportunity
Small businesses in rural communities are encouraged to apply in the next round of this nationwide grant program. The $18 million program is being administered through the Local Initiatives Support Corporation (LISC), the nation’s largest community development organization. LISC is offering $5,000-$20,000 grants aimed at helping small businesses in communities having a population of 50,000 or less. Grant funds can be used for business operating expenses that were not reimbursed through another federal grant program, and include wrap-around technical assistance. The application window for the next round runs January 26, 2021 – February 2, 2021. To learn more, please visit the website here.
How to Get Your PPP Loan Forgiven
Paycheck Protection Program loans were a popular option for businesses hoping to survive COVID-19-related shutdowns. Here is what businesses need to do to get their PPP loans forgiven.
To qualify for PPP loan forgiveness, the SBA set up various requirements that must be fulfilled. Effectively, forgiveness is granted to employers that kept or rehired employees while also maintaining general salary levels from before the pandemic. Employers can still be eligible for partial forgiveness if they don’t meet all of these criteria, such as if full-time headcount declined or salaries decreased somewhat.
Assessor COVID-19 Business Review
If COVID-19 has impacted your business financially, the Ascension Parish Assessor’s Office may be able to offer assistance after review of your business’ loss and its impact on your property. As the owner, you must be able to show at least a three year history of financial documents to determine the economic impact was due to the pandemic, provide details regarding any government assistance received, and any other information needed after an in person meeting. Adjustments will be made on a case by case basis. If you feel your business meets the criteria for assistance, please contact the Assessor’s Office to schedule a meeting at your place of business, for your convenience. Call (225) 647-8182 or (225) 473-9239 by August 31 to schedule an appointment.
This COVID-19 economic assistance is afforded to Ascension Parish businesses as a result of the combined efforts of the Assessor and other local parish government agencies.
Resources and Fliers:
Paycheck Protection Program: Update June 18, 2020
South Central Planning and Development Commission, click Corona Recovery Loan Program.
For information on what you should know about the ADA, the Rehabilitation Act and the Coronavirus, click here.
For information on the Families First Coronavirus Response Act (FFCRA), click here
For information on opening restaurants, click on the Fire Marshall’s Guidance for Restaurant / Food Service Outdoor Seating Criteria
Coronavirus Economic Stabilization Act of 2020 (“CESA”)
Economic Injury Disaster Loan Update April 24, 2020
Employee Retention Tax Credit Guide
Louisiana Loan Portfolio Guaranty Program
Louisiana Loan Portfolio Guaranty Program (LPGP) – FAQs
U.S. Chamber of Commerce Foundation’s list of small business resources for coronavirus assistance
Senate Committee on Small Business & Enterpreneurship released the Small Business Owner’s Guide to the CARES Act.
Small Business Guide and Checklist
To read a summary of H.R. 748 from Senator Bill Cassidy Click here.
Conronavirus Aid, Relief, and Economic Security (CARES) Act has passed.
Information and Guidance for Businesses on Federal Aid During COVID-19:
America’s Small Business Development Centers released a spreadsheet last week that compares all of the currently available SBA programs, including the Economic Injury Disaster Loans and Paycheck Protection Program. You can access the document by clicking here.
NOTE: Businesses are strongly urged to discuss all of these options directly with their local bank, accountant, or attorney for the best advice and guidance.
Economic Injury Disaster Loan:
Available now at Apply here.
- Interest Rate: 2.75% for non-profits, 3.75% For-Profits
- Up to $2 Million in Assistance (Up to $500,000 for first 6 months)
- 30-Year term
- One year of deferred payments
For more information on the current SBA Disaster loan program requirements: COVID-19 Economic Injury Disaster Loans.
Paycheck Protection Program:
- Interest Rate of 4% for both non- and for-profit businesses
- Up to $10 Million in assistance
- 10-Year Term
- 6 Months of Deferred Payments
- Possible forgiveness plan for first 8 weeks if you meet qualifications (forgiveness includes payroll, utility bills, mortgage/rent)
- 7(a) loans will be available through approved local banks in about 2 weeks
- Payroll summary report for last 12 months
- IRS Form 940 & 941 (payroll tax forms)
- 2019 business tax returns (or 2018 return if 2019 is not yet filed)
- Statement of payroll benefits offered to employees
- Evidence of payroll taxes, inusrance premiums and benefits paid
- Driver’s licenses for all owners with 20% or greater ownership stake
- Entity formation documents:
- Articles of Incorporation (or Articles of Organization)
- Bylaws and Operating Agreement
- Tax ID Number (Employer Identification Number)
- Board of Director Minutes (if applicable)
- Ownership Verification (if applicable)
Required Documents Checklist
Curious about what loan option is best for you? Look at this SBA chart for a quick reference guide.
Ascension Economic Development Corporation staff members are available to assist you Mondays and Wednesdays 9:00 am – 12:00 pm. For alternate time frames better suited to your schedule, please call (225) 644-1750 or email email@example.com to schedule an appointment.