January 23, 2021
Dear Friend, This Tuesday, January 26 at 4 PM CST, I will host a Small Business Relief Webinar alongside Congressman Bill Foster and Small Business Administrator Illinois District Director, Robert Steiner. We'll discuss relief available for local small businesses and nonprofits, additional funding provided by the latest COVID-19 package, updated guidance for navigating federal relief programs, and answer your questions. If you would like to join the conversation RSVP here.
WHAT: Rep. Sean Casten Webinar on Small Business Resources
WHO: Tuesday, January 26, 2020, 4:00-5:00pm CT
WHERE: Cisco WebEx. Click here to register.
The Small Business Administration, in consultation with the U.S. Treasury Department, reopened the Paycheck Protection Program (PPP) for First Draw PPP Loans the week of January 11, 2021. SBA began accepting applications for Second Draw PPP Loans on January 13, 2021. The following entities affected by Coronavirus (COVID-19) may be eligible:
Sole proprietors, independent contractors, and self-employed persons
Any small business concern that meets SBA’s size standards (either the industry size standard or the alternative size standard)
Any business, 501(c)(3) non-profit organization, 501(c)(19) veteran’s organization, or tribal business concern (sec. 31(b)(2)(C) of the Small Business Act) with the greater of: - 500 employees, or
- That meets the SBA industry size standard if more than 500
Any business with a NAICS code that begins with 72 (Accommodations and Food Services) that has more than one physical location and employs less than 500 per location The Paycheck Protection Program (PPP) now allows certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP Loan with the same general loan terms as their First Draw PPP Loan. Second Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations. How much can businesses borrow?For most borrowers, the maximum loan amount of a Second Draw PPP Loan is 2.5x average monthly 2019 or 2020 payroll costs up to $2 million. For borrowers in the Accommodation and Food Services sector (use NAICS 72 to confirm), the maximum loan amount for a Second Draw PPP Loan is 3.5x average monthly 2019 or 2020 payroll costs up to $2 million. Who may qualify? A borrower is generally eligible for a Second Draw PPP Loan if the borrower: - Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses
- Has no more than 300 employees; and
- Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020
How and when to apply?The SBA is currently accepting First and Second Draw PPP Loans until March 31, 2021. Lender Match can help connect you with a lender. You can also view all lenders near you on a map.
Disaster loan information and application forms may also be obtained by calling the SBA’s Customer Service Center at 800-659-2955 (800-877-8339 for the deaf and hard-of-hearing) or by sending an email to disastercustomerservice@sba.gov.
You can also visit my website at: https://casten.house.gov/covid-19-health-and-safety-updates or follow me on Facebook or Twitter for regular updates on COVID-19. Though my team and I are working remotely, we remain available to help you through these unprecedented times. If you have any questions, please contact my DC office at 202-225-4561 or my Glen Ellyn office at 630-520-9450.
Sincerely,
U.S. Representative Sean Casten
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