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Every SBA Update on Pending Small Business Aid

 

EmpPerk

Over the last week, the U.S. Small Business Administration released multiple announcements impacting a multitude of different aid types and mechanisms. In case you missed it, the MICPA has collated those announcements all in one place.

The first announcement came on Monday, April 19, introducing official details regarding application requirements, eligibility and guidance for the Restaurant Revitalization Fund (RRF). Key details from this and subsequent announcements regarding the RRF include:

  • A seven-day pilot program will introduce the application portal to the public to address technical issues ahead of the official launch.
  • Registration for the RRF will begin on Friday, April 30, 2021 at 9 a.m. EDT. Applications will open on Monday, May 3, 2021 at noon EDT, according to the latest report which also includes instructions for preparation and information on available training webinars.
  • Participants in the pilot will be randomly selected from existing Paycheck Protection Program (PPP) borrowers in priority categories for the RRF but will not receive any funds until the program opens to the public.
  • First 21 days will prioritize applications from small businesses owned by women, veterans and socially and economically disadvantaged individuals.
  • After the first 21 days, the application portal will open to all other eligible participants. Further information regarding eligibility and application guidelines can be found here.

On a related note, the SBA also announced last week that it would be partnering with Clover, NCR Corporation, Square and Toast in order to allow restaurants to apply for the RRF using their point-of-sale (POS) service providers2. This is not to say that applicants for the RRF need to be subscribed to one of these POS providers, as all applicants will be able to use the online portal. Rather, this is to facilitate an easier application process for those that are partnered with one of these providers.

Further exciting news came with the reopening of applications for the Shuttered Venue Operators Grant on Monday, April 26 at noon EDT. Those planning to apply for the RRF will want to register on the portal as soon as possible and will need a smartphone as well as a multi-factor authenticator app to register and apply. The initial opening on April 8 was, unfortunately, plagued with technical issues. Last week the SBA reported those issues have, so far, been resolved, listing the following updates:

“Clarifying and making program documentation more user-friendly;

Improving application portal security mechanisms;

Adding an industry-standard waiting room technology to address the high interest in the program and provide an orderly application process for fair and smooth performance; and

Updating application features, including: a new revenue chart, the ability to upload multiple attachments, and an improved application flow to match the eligible entity types and their respective required documentation.”

Finally, the SBA closed the week by launching a new round of Economic Injury Disaster Loans (EIDLs) dubbed Supplemental Targeted Advances. This new EIDL will provide $5 billion in assistance to small business and nonprofit organizations hard hit by the pandemic. Details regarding the Supplemental Targeted Advances are as follows:

  • The SBA will contact those business entities eligible for the additional $5,000 Supplemental Targeted Advances.
  • Applications from those qualified entities will be processed on a first-come, first-served basis.
  • Eligible entities must be in a low-income community, suffered greater than 50% economic loss and have no more than 10 employees.

The MICPA will continue to follow developments regarding financial assistance for businesses impacted by the COVID-19 pandemic. Visit our COVID-19 Resources page for all the latest developments.

Source: MICPA

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