SALT LAKE CITY – As dozens of small businesses across the country struggle to stay afloat, desperately needed financial aid is finally underway.
Congress on Monday passed the Economic Aid Act for Small Businesses, Nonprofits and Local Organizations – a $ 325 billion aid package that was part of the general relief spending for COVID-19 and aims to provide additional assistance long ago. long awaited for the hardest hit businesses, nonprofits and entertainment facilities that continue to struggle to recover from the effects of the coronavirus pandemic.
“Last time, it was a great help. I managed to keep my team for another month and a half. Unfortunately, after the funding ran out, I had to dismiss most of them,” said Molly Kohrman, owner of Brownies! Brownies! Brownies! at Sugar House, which applied for loans from the Coronavirus Aid, Relief, and Economic Security Act in the fall. “I had seven employees in the pre-pandemic. Now I have two and I will probably be with one next month. The additional funding would make a big difference if we could stay open for a few more months or if we were going to close in a few months.
“I know of a number of companies in the food industry that are reducing their services – whether it’s hours, product lines or personnel – and are making huge cuts in the next month or more, in the hope of being able to remain open,” said Kohrman. “But I know that many of them are just at this point playing day after day.”
She said the pandemic has affected revenues so much that she worries whether her store will be able to survive in the long run.
“If something doesn’t change in the very near future, then I intend to close the deal permanently,” said Kohrman.
For this latest emergency aid package, the law provides a second round of forgiving loans to small businesses made through the Pay Check Protection Program. The plan brings improvements to PPP, financing grants for locations closed by the outbreak, along with the enactment of emergency improvements for other US Small Business Administration loan programs.
“This critical assistance will provide small business owners with the capital they need to survive the pandemic and includes essential resources for Utah’s smallest businesses and nonprofits,” said Marla Trollan, director of Utah’s Small Business Administration district. US companies.
“In response to the new legislation, we will put our rapid response team back in and train them directly to answer general questions received for us and receive references to the most technical questions and queries from the lender,” she said.
Contact information will be provided as soon as the team is formed, she said.
Small business owners and nonprofits can subscribe to the Utah SBA office newsletter at www.sba.gov/offices/district/ut/salt-lake-city, as well as check for updates on Twitter: @SBA_Utah to stay up to date on new programs and any changes that may be implemented in the coming weeks, explained SBA Utah District spokeswoman Siobhan Carlile.
Some of the main points of the new federal relief package include the creation of a second round of PPP loans for eligible companies, defining the eligibility requirements for the second PPP draw as entities with no more than 300 employees and those that can demonstrate a at least 25% reduction in gross revenue between comparable quarters in 2019 and 2020, said a press release.
The new plan establishes a maximum loan amount of 2.5 times the company’s average monthly payroll cost – up to $ 2 million. The program also allows small businesses in the lodging and food industry to receive second-rate PPP loans equal to 3.5 times their average monthly payroll costs to help these companies mitigate state and local restrictions that have affected their financial results.
Borrowers receive full loan forgiveness if they spend at least 60% of their next PPP loan on payroll costs over a period of their choice between eight and 24 weeks, the statement said.
The program affirms the eligibility of churches and religious organizations, while prohibiting a future White House government from designating them as ineligible. The law also preserves the application of membership rules to non-profit organizations, specifically making planned paternity ineligible.
The plan includes specific provisions that support first-time PPP borrowers with 10 or less employees, second-time PPP borrowers with 10 or less employees, first-time PPP borrowers who were recently eligible, as well as returning PPP borrowers for the second time . The plan also provides for a reserve for loans made by community creditors, the statement said.
For more information about the new aid package and its funding programs, visit the SBA Utah district office website or call 801-524-3209.