The U.S. Small Business Administration (SBA), announced today (1/8/2021), that the Paycheck Protection Program or PPP, will re-open the week of January 11, 2021 for new borrowers and certain existing PPP borrowers. Initially only community financial institutions will be able to make First Draw PPP loans and Second Draw PPP loans. The PPP will open to all participating lenders shortly thereafter.
The Second Draw PPP permits most eligible borrowers to receive a loan amount of the lesser of up to 2.5 times its average monthly payroll or $2,000,000 provided that a maximum employee loan limit is now set at 300 employees including affiliates. Accommodations and Food Services having more than one location may have up to 300 employees per location.
Importantly, a Second Draw PPP loan may only be made to an eligible business that: (a) has previously received an Original PPP loan; and (b) has used 100% of the proceeds of the Original PPP loan before the Second Draw PPP loan proceeds are disbursed.
Please contact your local lender/ financial institution for additional details.
The Rebuild VA Grant Fund is a program to help small businesses and non-profits whose normal operations were disrupted by COVID-19, including restaurants, brick and mortar retail, exercise and fitness facilities, personal care and personal grooming services, entertainment and public amusement establishments, and campgrounds.
Businesses and non-profits that are approved for a Rebuild VA grant may receive up to 3 times their average monthly eligible expenses up to a maximum of $10,000.
Governor Ralph Northam allocated an additional $20 million in federal Coronavirus Aid, Relief, and Economic Security (CARES) Act funding to the Rebuild VA economic recovery fund to meet demand for the program and fulfill pending grant applications. This new funding will bring the program total to $120 million and will enable more than 300 small business and nonprofit organizations that applied before the last round of funding was exhausted in early December to receive grants. Eligible applicants that are still in the pipeline have been notified via email that their applications have been re-opened.