COVID-19 Relief Legislation Highlights

Categories: COVID19 Latest News   |  

SUMMARY OF KEY POINTS

As we await guidance from the various federal agencies responsible for different portions of the legislation, we are pulling out relevant portions that will impact small businesses, non-profits, and self-employed individuals. We will continue to update our Recovery Resources section as additional information becomes available.

Paycheck Protection Program Updates

Deadline To Apply: March 31, 2021

Please visit this updated page for details and application forms for First-Draw and Second-Draw PPP Loans. 

We continue to update information as guidelines from relevant federal agencies are released and the ultimate goal is to remove this page and simply update all the content on our main Federal Resources page. 

EID Loans & Targeted EIDL Advance

Loans are offered at very affordable terms, with a 3.75% interest rate for small businesses and 2.75% interest rate for nonprofit organizations, a 30-year maturity, and an automatic deferment of one year before monthly payments begin. Every eligible small business and nonprofit is encouraged to apply to get the resources they need.

ELIGIBILITY

You must be a:

Small business, sole-proprietor, independent contractor (1099), a cooperative (including small agricultural), part of an Employee Ownership Stock Plan, agriculture or aquaculture business, or private non-profit.

Agricultural businesses include those businesses engaged in the production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries.

TERMS, USES, & GETTING READY

  • 3.75% for businesses (fixed)    I    2.75% for nonprofits (fixed)
  • 30 years
  • No pre-payment penalty or fees

Uses: Working capital & normal operating expenses

Collateral:

  • Required for loans over $25,000
  • SBA uses a general security agreement (UCC) designating business assets as collateral, e.g. machinery and equipment, furniture and fixtures, etc.

There will be a credit check, as this is a loan program.

Please note this is a loan, and it has to be repaid. There are no mechanisms for the forgiveness of this loan. It is, however, a very strong program with great terms that can help many small businesses with cash flow issues during this time.

Additional funds have been allocated under the new law, with some changes to the program.

  • Eligible Businesses in low-income communities that did not get EIDL loans/Advance grants because funds had run out can now get $10,000.
  • Businesses in low-income communities that received an EIDL loan advance can get a grant equal to the difference of what they received and $10,000.
  • Eligibility updated to small businesses with 300 or fewer employees; must demonstrate gross receipts loss of 30%+

Tax Relief Act of 2020

Guidelines to Be Released by IRS

Unemployment Provisions Including Pandemic Unemployment Assistance

The new law provides an 11-week extension of the unemployment insurance (UI) compensation benefits first provided in the CARES Act that were due to expire on December 26.

This includes the Pandemic Unemployment Assistance (PUA) that extends UI benefits to workers who traditionally are ineligible, such as gig economy workers and independent contractors, and Federal Pandemic Unemployment Assistance (FPUA), which will provide an additional $300 per week supplement to state UI compensation.

The Pandemic Emergency Unemployment Compensation (PEUC) program which originally provided an additional 13 weeks of Unemployment Insurance benefits will also be extended for 11 weeks (for a combined maximum of 50 weeks) and will expire on March 14, 2021.

Individuals receiving benefits beyond the standard 26-week period as of March 14th will continue receiving them through April 5th if they have not reached their maximum number of benefit weeks.

Federal funding will be extended for states waiving their waiting week for benefits.

NEW: Workers with at least $5,000 in self-employment income may be eligible for an additional $100 per week benefit as part of the Mixed Earner Unemployment Compensation to adjust for a lower UI base payment.

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