SBA Rolls Out Major Updates to PPP- June 17, 2020
Breaking News!!! SBA rolls out updates to PPP, including offering automatic forgiveness for certain independent contractors.
The Small Business Administration and U.S. Treasury Department on Wednesday rolled out major updates to the Paycheck Protection Program, offering automatic forgiveness for certain independent contractors and creating a broader application form for forgiveness.
CARES Act & SBA Resources for Businesses:
Sole proprietors and independent contractors are eligible for unemployment as of right now, which is a change.
The Colorado Department of Labor and Employment is working to administer the new federal CARES Act programs, and we recommend you check back regularly for announcements for Independent Contractor applications. Since these are brand new federal programs or expansions of existing programs, many states are still in the process of getting ready for new applicants even though the Federal program has opened. For SBA programs EIDL and PPP, start by working with an eligible lender to prepare your application and get in the queue for consideration. For Pandemic Unemployment Assistance, this federal money is administered by the Colorado Department of Labor and Employment itself, so the application process will be announced on their website.
A helpful visual is the Coronavirus Aid, Relief and Economic Security Act, CARES Act for Small Businesses Flow Chart from VVP website to determine information for paycheck protection program and EIDL Grants
Paycheck Protection Program (PPP) Federal Dates:
April 3: Small businesses and sole proprietors can apply for the loans
April 10: Independent contractors and self-employed individuals eligible to apply
Applications should go directly through an SBA lender.
Click here to use SBA's tool to find eligible lenders and learn more about qualifications.
Economic Injury Disaster Loans (EIDL) and Grants
Under the CARES Act, a loan of up to $2 million is available to any small business, nonprofit, or business with 500 or fewer employees that experiences an economic hardship as a result of COVID-19. This includes sole proprietors, independent contractors, tribal businesses, and cooperatives. These loans can be used to pay fixed debts, payroll, accounts payable and additional bills that can't be paid because of COVID-19's impact. Applicants also have the option to apply for a grant of up to $10,000.
Pandemic Unemployment Assistance (PUA)
A key provision in the CARES Act creates a temporary Pandemic Unemployment Assistance program that extends unemployment benefits to those not traditionally eligible, including self-employed individuals. To be eligible, among other requirements, individuals must demonstrate that they are otherwise able to work and available for work within the meaning of applicable state law, except that they are unemployed, partially unemployed, or unable or unavailable to work because of COVID-19 related reasons.
Resources to watch and learn:
RRC Coronavirus Aid, Relief, and Economic Security Act
A great recorded webinar with CRSs Chris Bird and Dale Carlton from RRC Coronavirus Aid, Relief, and Economic Security Act Update that helps REALTORS® put together a full plan and goes over each of these items.
Virtual Town Hall Meeting on Business & Employment Resources- Check out a recap of the meeting which covers the resources available right now.
On April 9, 2020, Representative Dylan Roberts and Sen. Kerry Donovan held a virtual town hall meeting to discuss the business and employment impacts and responses to COVID19 in Eagle and Routt Counties. Panelists included the Colorado Department of Labor & Employment, Vail Valley Partnership, Steamboat Springs Chamber of Commerce, Basalt Colorado Chamber of Commerce, Yampa Valley Entrepreneurship Center (CMC), and the Northwest CO Small Business Development Center.
The Northwest Small Business Development Center
Videos and information to help guide you through the processes. https://northwestsbdc.org/covid-19/
COVID-19 resources and information for property managers- https://www.irem.org/learning/coronavirus
Governor Polis Limits Foreclosures and Asks Landlords and Utilities to Forgive Late Payment Without Penalty
The Executive Order limits evictions and foreclosures to help ensure stable housing during the COVID-19 crisis. The Office of Governor Polis released a fact sheet for those concerned about eviction, foreclosure, or disconnection of utility services during this time. Read Executive Order here.
Eagle County Emergency Assistance Request
Commissioners allocate additional $500,000 in financial assistance for residents
April 14, 2020 - During its regular meeting today (4/14), the Eagle County Board of Commissioners allocated $500,000 in economic assistance for residents experiencing financial hardship due to COVID-19. The funds are in addition to the $400,000 the board approved in March, and brings the total amount of emergency assistance available to county residents to $900,000.
The new funding is intended to expand and enhance existing assistance programs overseen by Eagle County Human Services. Examples of assistance include rent or mortgage payments, utility services, emergency food supply, and other urgent health or shelter needs. The county requests that applicants do not seek aid for any expenses that are being addressed by other agencies.
Residents seeking assistance for April expenses should complete the form found at www.eaglecounty.us/covid19help. Those who have already applied should not submit another form. After submitting an application, individuals will be contacted for a brief interview to collect the information necessary to determine which resources may be available for each case. Phone requests cannot be taken, but those who would prefer to receive an application by mail may request one by calling 970-328-8888.
We understand that there is a lot of information on this topic, and you may not be impacted right now, but you need to plan for the next few months, and it makes sense to apply now if you think you will need it in the upcoming months. If you still have questions please contact Erica Kirk and we will try and get you the answers.
Don't forget it is important to be careful of scammers during this time.