ACCESSING AND APPLYING FOR FINANCIAL RESOURCES, SBA ECONOMIC INJURY DISASTER LOANS (EIDL), INCLUDING PAYCHECK PROTECTION PROGRAM (PPP) LOANS, AND ALL TYPES OF SBA AND NON-SBA LOAN PROGRAMS, OR NON-SBA GRANTS
The American Rescue Plan Act of 2021
On March 11, 2021 President Biden signed the American Rescue Plan Act of 2021 into law which provides additional relief for the nation’s small businesses and hard-hit industries for programs the SBA is currently administering and adds new efforts, including:
Paycheck Protection Program
$7.25 billion additional for the Paycheck Protection Program, including to expand eligibility to additional nonprofits and digital news services
The Biden administration just announced major changes to the Paycheck Protection Program, aimed at extending aid to minority-owned businesses and to the nation’s smallest firms. Only businesses with fewer than 20 employees will be able to apply for PPP funds through March 9. The administration is also making other changes that could impact small business’ access to pandemic relief.
Shuttered Venue Operators Grant
Additional funds are allocated for the Shuttered Venue Operators Grant program, and now allows businesses to apply for both a PPP loan after Dec. 27, 2020, and the SVOG.
The Shuttered Venue Operators (SVO) Grant program was established by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, signed into law on December 27, 2020. The program includes $15 billion in grants to shuttered venues, to be administered by the SBA’s Office of Disaster Assistance. Eligible applicants may qualify for SVO Grants equal to 45% of their gross earned revenue, with the maximum amount available for a single grant award of $10 million. $2 billion is reserved for eligible applications with up to 50 full-time employees. For additional details, visit the SBA website for SVOG Updates including the SVOG Applicant User Guide (04-23-21), SVOG Preliminary Grant Application Checklist (04-23-21), SVOG Eligibility Requirements, Cross-Program Eligibility Information, and Shuttered Venue Operators Grants Frequently Asked Questions (revised 04-23-21).
Economic Injury Disaster Loan
$15 billion additional for Targeted Economic Injury Disaster Loan Advance (EIDL) payments, including NEW $5 billion for Supplemental Targeted EIDL Advance payments for those hardest hit.
Restaurant Revitalization Fund
SBA Administrator Announces Closure of Restaurant Revitalization Fund Program: The $29 billion Restaurant Revitalization Fund (RRF) has received over 303,000 applications totaling more than $69 billion in funds and closed on Monday, May 24. With the closure of the RRF, the SBA will continue to deliver economic aid to help small businesses recover with critical relief through programs such as the Economic Injury Disaster Loans [EIDL], Targeted EIDL Advance and Supplemental Targeted Advance and the Community Navigator Program. For additional information on SBA’s Economic Relief programs, visit COVID-19 relief options (sba.gov).
The Restaurant Revitalization Fund application platform will remain open for the next two weeks to allow applicants to check their status, address payment corrections, or ask questions. The SBA will disable access to the platform on July 14, 2021.
The American Rescue Plan Act established a $28.6 billion “Restaurant Revitalization Fund (RRF)” within the U.S. Small Business Administration (SBA). An eligible business may receive a tax-free federal grant equal to the amount of its pandemic-related revenue loss, calculated by subtracting its 2020 gross receipts from its 2019 gross receipts. Eligible entities are businesses who have experienced pandemic-related revenue loss that are not permanently closed and are businesses where the public or patrons assemble for the primary purpose of being served food or drink. Food service or drinking establishments, including caterers, brewpubs, taprooms, and tasting rooms, that are not part of an affiliated group with more than 20 locations will be eligible to apply for the grant. The Restaurant Revitalization (RRF) Grant for restaurants will be administered by the U.S. Small Business Administration (SBA). For the first 21 days that the program is open, the SBA will prioritize reviewing applications from small businesses owned by women, veterans, and socially and economically disadvantaged individuals. Following the 21-day period, all eligible applicants are encouraged to submit applications. The funds must be spent on expenses that were/are incurred between February 15, 2020 and March 11, 2023.
Community Navigator pilot program
NEW: $100 million to establish a Community Navigator pilot program; grants will go to eligible organizations supporting efforts to improve access to COVID–19 pandemic assistance programs and resources. Click here for program overview.
SBA’s current relief efforts can be found at www.sba.gov/coronavirusrelief, and more details about these program updates and new efforts the SBA will administer in the coming weeks.
Click Here to View the American Rescue Plan Act of 2021 – H.R. 1319
Additional Financial Resources
Employer Tax Credit: Paid Leave Credit for Vaccines
The American Rescue Plan Act of 2021 (ARP) allows small and midsize employers, and certain governmental employers, to claim refundable tax credits that reimburse them for the cost of providing paid sick and family leave to their employees due to COVID-19, including leave taken by employees to receive or recover from COVID-19 vaccinations. The ARP tax credits are available to eligible employers that pay sick and family leave for leave from April 1, 2021, through September 30, 2021. For more Information see our Employer Tax Credit page, News Release and Fact Sheet.
New Mexico Finance Authority - House Bill 11
Local Economic Development Recovery Grants
Gov. Michelle Lujan Grisham signed House Bill 11 into law, delivering $200 million in grants to support New Mexico businesses to ease the hiring or rehiring of employees. The applications and payments for the grants provided for in House Bill 11 will be managed by the New Mexico Finance Authority at nmfinance.com. A formal announcement will be made when the application portal is open for HB 11 grants. Each business may qualify for up to $100,000 to be distributed in four quarterly payments. Click here for additional information regarding the grants and here for to view the 28 page House Bill 11.
New Mexico Finance Authority - Senate Bill 3
Small Business Recovery Loan Fund
The New Mexico Legislature recently expanded and extended the Small Business Recovery Loan Fund to better help businesses experiencing financial hardship caused by the pandemic. More businesses are now eligible to apply for a loan, the loans have more favorable and flexible terms, and businesses that received a Small Business Recovery Loan in 2020 can refinance for a longer term or a bigger loan. This $500 million loan fund offers loans up to $150,000 at a current interest rate of 1.625%, terms up to ten years, no payments due the first year, interest-only payments due in the second and third year, and no penalty for paying off a loan in advance. The Small Business Recovery Loan Fund application will be open April 29, 2021 through May 31, 2022. Updated information will be posted at www.nmfinance.com.
April 14th, 2021 New Mexico Economic Development Department/New Mexico Finance Authority Webinar:
Expanded and Improved: Small Business Recovery Loan Fund
COVID-19 Funding Options
A resource of private funding options to help small businesses is available on the SBA’s website where you can browse options available nationally, or input a zip code to explore location-specific funding.
On Demand Videos
U.S. Chamber of Commerce Small Business Update 3/12/2021: The American Rescue Plan Act of 2021
The American Rescue Plan Act, a $1.9 trillion coronavirus relief bill that includes new help for small businesses struggling during the pandemic has been signed into law. This package includes long-awaited aid dedicated specifically to the restaurant industry, new provisions for small businesses across other industries, and more money for the Paycheck Protection Program. Learn how this new bill could impact your business at the most recent Small Business Update from March 12th during which Neil Bradley and Jeanette Mulvey were joined by National Restaurant Association’s Sean Kennedy to break down the new deal and what it means for your small business:
Click Here for a list of Upcoming Live Events from CO— by U.S. Chamber of Commerce.
Visit this page to get the latest stories from CO— and click here for U.S. Chamber policy updates and guidance. A full suite of on-demand content from 2020 onward is available here.