Small Business Administration officials advise businesses on federal aid
U.S. Small Business Administration officials on Friday urged Long Island business owners to start seeking help with the second federal stimulus package, though details of some initiatives are still pending. of discussing.
Under the latest version or “lottery” of Paycheque Protection Program, According to John Mallano, deputy director of the New York district of the SBA, businesses looking for a second loan may have more flexibility in how they spend 40% of the funds, including on things like personal protective equipment. and cloud and software expenses.
Mallano noted that companies looking for a second PPP loan should not have more than 300 employees and have experienced gross revenue losses of at least 25% as of a quarter of 2020, compared to the same quarter in 2019. , or from 2020 to 2019. The maximum loan depends on the payroll, but caps at $ 2 million, according to the SBA.
“You might not get approval that quickly,” this time around, Mallano said during a Newsday / Long Island Association webinar hosted by Newsday business writer James T. Madore. He noted that additional measures could be taken to combat fraud. “They might be doing a few more background checks.”
PPP loans are guaranteed by the federal government and provided by banks and other private lenders with an interest rate of 1% and a term of five years. They can be forgiven if certain rules are followed.
SBA officials also discussed Economic disaster loans at the webinar. EIDL comes from the SBA with an interest rate of 3.75% for companies and 2.75% for associations and a term of 30 years.
EIDL is open to organizations that have not yet applied, with a new deadline of Dec.31, 2021, or whenever funds run out, according to Robert Piechota, branch manager of the SBA’s Long Island office. . The maximum loan is six months of working capital, according to the SBA.
And Piechota encouraged speed. “Our recommendation is always to apply,” he said. “If you receive the funds, you do not have to accept them.”
He said many people have asked if emails asking for company meeting minutes or proof of insurance are scams. Piechota said emails from sba.gov addresses are credible and people should respond to them.
Shuttered Venue Grants Program
Closed entertainment businesses may wish to put their application on hold until more information on the Subsidy program for closed site operators is released because those who receive PPP loans may not be eligible for grants, Piechota said.
He encouraged the Long Islanders to look into SBA programs and connect with administrative partners such as Small Business Development Centers, women’s business centers or the Service corps of retired executives, who may be aware of other government and private relief opportunities.
“There is something in there for you,” Piechota said.