January 5, 2021 - DC Coronavirus
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January 5, 2021
Welcome
Deputy Mayor John Falcicchio,
Planning and Economic Development (DMPED)
Small Business
Administration Updates
Roderick Johnson, Project Officer, Lender Relations
& Small Business Development Center
July 21, 2020
PPP 2.0
• Re-opened through March 31, 2021 with an additional $284 billion in funding.
• Businesses are eligible to receive a second forgivable loan if they:
PPP 2.0 |
Re-opened • through
employMarch 300 employees
31, 2021 with or an
less;
additional $284 billion in funding.
Businesses• are
have usedtoorreceive
eligible will use the fullforgivable
a second amountloan of their first PPP; and
if they:
• demonstrate
employ 300 employeesatorleast less; a 25% reduction in gross receipts in any quarter in 2020 compared to the same
quarter
have used or willinuse
2019.
the full amount of their first PPP; and
•demonstrate
Small businessat least a 25% reduction
owners in grossfor
can also apply receipts in any
an initial PPPquarter
loan. in 2020 compared to the same quarter in 2019.
Small• business
Simplifiesowners
the can also applyapplication
forgiveness for an initialfor
PPPloans
loan.under $150,000.
Simplifies•theA forgiveness
rollout of theapplication
processfor loans
will underby
happen $150,000.
February A rollout
1, 2020.of the process will happen by February 1, 2020.
Allows
• borrowers to specifyto
Allows borrowers a covered
specify period
a coveredbetween
period8 and 24 weeks
between for PPP
8 and 2.0 loans.
24 weeks for PPP 2.0 loans.
Repeals the requirement of deducting an EIDL Advance Grant from PPP loan forgiveness amount.
• Repeals the requirement of deducting an EIDL Advance Grant from PPP loan forgiveness amount.
Expands eligible expenses to include costs for modified business operations, supplier costs, and costs associated with complying
with•health
Expands eligible
and safety expenses to include costs for modified business operations, supplier costs, and costs
guidelines.
associated
Businesses with complying
in the restaurant with health
and hospitality andare
industries safety guidelines.
eligible to receive loans of 3.5 times average monthly payroll, rather
than•2.5Businesses
times. in the restaurant and hospitality industries are eligible to receive loans of 3.5 times average
monthly payroll, rather than 2.5 times.EIDL Advance Grant 2.0
• Adds another $20 billion for EIDL Advance Grants.
PPP 2.0 |
• Eligible
Re-opened throughsmall
March 31,businesses are able
2021 with an additional $284to receive
billion additional funding if their first
in funding.
EIDL
Businesses areAdvance Grant
eligible to receive wasforgivable
a second underloan $10,000.
if they:
employ 300 employees or less;
•have
Businesses
used or will useare eligible
the full amount to receive
of their first PPP;anandEIDL Advance Grant if they:
• employ
demonstrate 300
at least a 25%employees
reduction in grossorreceipts
less; in any quarter in 2020 compared to the same quarter in 2019.
Small business owners can also apply for an initial PPP loan.
Simplifies•the
demonstrate at least
forgiveness application 30%
for loans underreduction in gross
$150,000. A rollout receipts
of the process in any
will happen 8-week
by February 1, 2020.
Allows borrowers
periodto specify a coveredMarch
between period between
2, 8 and and
2020 24 weeks for PPP 2.0 loans.
December 31, 2021; and
Repeals the requirement of deducting an EIDL Advance Grant from PPP loan forgiveness amount.
• areexpenses
Expands eligible located in a low-income
to include community,
costs for modified business operations, assupplier
defined forcosts
costs, and theassociated
New Markets
with complying
with health and safety guidelines.
Tax Credit (NMTC).
Businesses in the restaurant and hospitality industries are eligible to receive loans of 3.5 times average monthly payroll, rather
than 2.5 times.Tax Provisions
• Reverses IRS ruling to allow tax deductions for PPP forgiven expenses and
PPP 2.0 | Re-opened through March 31, 2021 with an additional $284 billion in funding.
clarifies
Businesses are eligiblethat PPPa second
to receive loan forgivable
forgiveness not taxable income.
loan if they:
•employ 300 employees or less;
Clarifies that EIDL Advance Grants are not included in taxable income.
have used or will use the full amount of their first PPP; and
•demonstrate
Extends FFCRA
at least a 25% tax credits
reduction in grossthrough March
receipts in any quarter31, 2021.
in 2020 compared to the same quarter in 2019.
Small business owners can also apply for an initial PPP loan.
• Extends
Simplifies theapplication
the forgiveness Employee Retention
for loans under $150,000.TaxA rollout
Credit through
of the July
process will 31,by2021
happen Februaryand
1, 2020.
expands
Allows borrowers the acredit.
to specify covered period between 8 and 24 weeks for PPP 2.0 loans.
Repeals the requirement of deducting an EIDL Advance Grant from PPP loan forgiveness amount.
Expands eligible expenses to include costs for modified business operations, supplier costs, and costs associated with complying
with health and safety guidelines.
Businesses in the restaurant and hospitality industries are eligible to receive loans of 3.5 times average monthly payroll, rather
than 2.5 times.Small and Local
Business Updates
Kristi Whitfield, Director, Department of
Small and Local Business DevelopmentDSLBD The DLSBD team is ready and available to provide technical support and assistance to District businesses applying for PPP funds: email: dslbd.ptac@dc.gov Phone: (202) 727-3900 (select option #7) Where else can I get help? • District Chamber of Commerce • Your current lender • DC Main Streets • Small Business Development Centers • Business Improvement Districts • Greater Washington Hispanic • Greater Washington Black Chamber of Commerce Chamber of Commerce
City First Bank
LaShanya Washington, Vice President & Credit Risk Manager,
City First Bank
James Steck, SBA Lending Officer, City First BankGetting Ready for Round 3
• BORROWERS ROLE:
• Existing borrowers will be notified by local banks of second advance application and
eligibility requirements
• Prepare to send in documents submitted in first round:
• Payroll Processor Reports (ADP, Paychex, CARES Act Form)
• Tax Forms 941
• 2019 Tax Returns
• LENDERS ROLE:
• Awaiting official guidance from the SBA on submission format and applications
• Preparing teams for all hands, additional resources, etc.
• CFB – preparing to automate the application process to increase number of
applications processedFAQ • How is process different in Round 3? • Should borrowers apply through the SBA or local Banks? • How are local banks preparing to help District businesses? • When will the application process start? • When will Round 3 loans be approved by SBA and disbursed?
FORGIVENESS APPLICATIONS • SBA is currently accepting forgiveness applications • Contact local bank for forgiveness details • CFB – has automated the forgiveness process • Invitation emails have been sent to all CFB PPP borrowers • Encourage borrowers to apply for forgiveness as soon as the PPP funds have been exhausted
Special Guest Remarks
Anthony Hales, Bayne LLC, President and CEO
Cora Williams, Ideal Electrical, CEO
Odara Jabali-Jeter, Property Management (sole
proprietor/CEO)Open Discussion
Q&ACORONAVIRUS.DC.GOV/RECOVERY
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