New information is just becoming available on additional Federal and State aid in response to COVID-19. This is ongoing over the next few weeks. The Network will share links and updated info as available. Please watch for announcements during the next 1-2 weeks from the State of Michigan as well as further guidance at the Federal level. Take advantage of Americans for the Arts free aid webinars 1/15 & 22.Info: See Grapic Above; Links & Bullets Below
Re-Opening PPP, Second PPP Draws, Streamlined Forgiveness
The U.S. Small Business Administration (SBA) re-opened the Paycheck Protection Program (PPP) today, January 11, for new borrowers and certain existing PPP borrowers. Per the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act, this round of the PPP Americans employed by small businesses or as independent workers by authorizing up to $284 billion toward job retention and certain operating expenses by allowing certain existing PPP borrowers to apply for a Second Draw PPP Loan. Application deadline is March 31, 2021.
Key PPP updates include:
PPP borrowers can set their PPP loan’s covered period to be 8 – 24 weeks:
PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
Eligibility is expanded to include 501(c)(6)s, housing cooperatives, direct marketing organizations;
The PPP provides greater flexibility for seasonal employees;
Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; and
Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.
A borrower is generally eligible for a Second Draw PPP Loan if the borrower: a) Previously received a First Draw PPP Loan and used the full amount only for authorized uses; b) Has no more than 300 employees; and, c) Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.