Good Friday afternoon!
Below you will find a comprehensive explanation of the most current round of PPP loans. Please remember that while the portal for application is open, your personal lender may not have the information necessary to assist you at this time. Please be patient as they await direction and appropriate loan documents. This is a great time to gather your finances and read up on what will be expected of you throughout the loan application process.
If you received a PPP Loan during the first application period, the information below pertains to you and your business:
Second-draw PPP loans
One of the biggest changes with the new PPP is that Congress made funding available to businesses that had previously received a PPP loan. Borrowers are eligible for a second-draw PPP loan of up to $2 million, provided they have:
The Economic Aid Act did not provide a general definition of gross receipts for determining a borrower’s revenue reduction, so the new guidance makes the definition consistent with the definition of receipts in 13 C.F.R. Section 121.104 of SBA’s size regulations. Specifically, the IFR defines gross receipts to include all revenue in whatever form received or accrued (in accordance with the entity’s accounting method) from whatever source, including from the sales of products or services, interest, dividends, rents, royalties, fees, or commissions, reduced by returns and allowances. Forgiven first-draw PPP loans are not included in the 2020 gross receipts.
The Economic Aid Act makes first-draw PPP loans available to borrowers that were in operation on Feb. 15, 2020, and come from one of the following groups:
PPP applicants must submit documentation sufficient to establish eligibility and to demonstrate the qualifying payroll amount, which may include, as applicable, payroll records; payroll tax filings; Form 1099-MISC, Miscellaneous Income; Form 1040, Schedule C, Profit or Loss From Business, or Schedule F, Profit or Loss From Farming; income and expenses from a sole proprietorship; or bank records.
PPP borrowers can have their first- and second-draw loans forgiven if the funds are used on eligible costs. As with the first round of the PPP, the costs eligible for loan forgiveness in the revised PPP include payroll, rent, covered mortgage interest, and utilities. In addition, the following costs are now eligible:
To be eligible for full loan forgiveness, PPP borrowers will have to spend no less than 60% of the funds on payroll over a covered period between eight or 24 weeks.
Borrowers that receive a PPP loan of $150,000 or less shall receive forgiveness if the borrower signs and submits to the lender a certification that is not more than one page in length, includes a description of the number of employees the borrower was able to retain because of the loan, the estimated total amount of the loan spent on payroll costs, and the total loan amount. The SBA has yet to create the simplified application form but must do so by Jan. 20. The form may not require additional materials unless necessary to substantiate revenue loss requirements or satisfy relevant statutory or regulatory requirements. Borrowers are required to retain relevant records related to employment for four years and other records for three years, as the SBA may review and audit these loans to check for fraud.
To apply, CLICK HERE then choose the appropriate option – PPP First Draw or PPP Second Draw.
Again, we find ourselves in uncharted waters. Many have called with questions and we are happy to help you navigate. I will do my best to answer your questions or provide you with the necessary resources.
Monday, January 8th is Martin Luther King, Jr. Day and as such, many of our businesses will be closed in observation. Enjoy your weekend!
- Each business will be required to post a sign about the mask order.
- Each store will be responsible for ensuring employees and customers comply with the mask order.
- The state will form a new retail compliance unit, comprised of officials from the Bureau of Workers Compensation. Non-compliance found by any establishment will result in warnings and, subsequently, fines/required closures/etc.
- Click HERE to create your OH/ID.
- Click HERE to access a fact sheet on the Small Business Relief Grant.
- Click HEREthen click ‘Small Business Relief Grant’ to apply on or after 11/2/20.
- ClickHERE to access a fact sheet on the Bar & Restaurant Assistance Grant.
- Click HERE then click ‘Bar & Restaurant Assistance Grant’ to apply on or after 11/2/20.
Small Business Saturday is Coming to Fayette County!
Once again, the Fayette County Chamber of Commerce has been designated a “Neighborhood Champion” for the American Express Small Business Saturday. We will be celebrating Small Business Saturday for THREE WEEKS! We want to give everyone plenty of time to hit all the hot spots in search of the perfect gift. This is exciting news, and here is where you come in! Would you like me to help you market all the great things your business has to offer?
I will create a ‘Shopping Passport’ that will be given to anyone interested in shopping their way through Fayette County. Each passport will have a listing of all participating stores. If they purchase something from your store, simply stamp their passport. We ask that all participating stores donate one item to be used for our raffle prize baskets. When a shopper has a completed passport, they drop it off at the Chamber office for their chance to win one of those baskets full of Fayette County treasures!
I will take care of all the marketing – you just stamp the passports and enjoy the sales!
In order to meet print deadlines, you must register as a participating business no later than NOVEMBER 6TH.
If you are a shopper, we are serving up breakfast, coffee, and shopping passports on Saturday, November 28th. Stop in the office between the hours of 9 AM and 12 PM to grab your reusable shopping bag, map of participating businesses, and your passport. Each of our participating businesses will stamp your passport as you visit their store in search of the perfect Christmas gift. Return a completed passport to the chamber by December 20th to be entered for a chance to win one of our great prize baskets!
I encourage you all to think of what unique gifts you can purchase this holiday season without ever leaving Fayette County! Support your community, your friends, and neighbors and shop local-dine local-think local today and every day!
Wishing you all a great evening-
- The Governor recently asked the Bureau of Workers’ Compensation to approve a second dividend for both public and private businesses. This request was approved and beginning on Friday, October 23rd, checks totaling over 1.3 billion dollars will be mailed to Ohio businesses. Please be on the lookout for a non-descript envelope from Ohio BWC. Many of the first-round dividend checks have yet to be cashed. These dividends are NOT sent via direct deposit.
- Governor DeWine announced the state is working on additional programs that will utilize the CARES Act funding to help those struggling with bills and for our struggling small businesses. We anxiously await those announcements, promised at the end of this week.
- The new Long Term Care Community dashboard will be going live on the coronavirus.ohio.gov. webpage shortly. This will allow friends and loved ones to see if a specific facility has new or updated rules regarding visitation.
171 individuals were tested yesterday in the Pop-Up testing event held at the Fayette County Fairgrounds. Our next testing opportunity will be held Monday, October 26th from 10am – 2pm at the fairgrounds. This testing is free and open to the public.