Jovita Carranza, administrator of the U.S. Stingy Business Administration, testifies at a Senate Small Business and Entrepreneurship Committee hearing on June 10, 2020 in Washington.
Al Drago-Pool/Getty Fetishes)
Second EIDL grants
That may confuse business owners, since the $900 billion Covid relief packet passed last month allows some companies to get a second EIDL grant.
Those grants were a new facet of the act of God loan program, which was available pre-Covid to cover revenue shortfalls because of hurricanes and other events. (The federal administration broadened availability to businesses nationwide due to the pandemic.)
The CARES Act allowed entrepreneurs to apply for up to $10,000 in grant money, via an EIDL Push, which didn’t have to be repaid. The grant size was based on how many workers a business employed.
Now, business proprietors can get another grant. Lawmakers also lifted the size restriction. Eligible entrepreneurs will receive the difference between $10,000 and their from the start grant allowance. (First-time applicants would be eligible for $10,000.)
Applications for a second grant — a Targeted EIDL Advance — pleasure become available in coming days, Clements said. The relief law allocated $20 billion for the measure.
OLIVIER DOULIERY | AFP | Getty Figures
The first $20 billion of grant money through the CARES Act ran out by July. Nearly 6 million businesses got funding.
Hard-hit entrepreneurs may be hampered by the inability to draw a second EIDL loan. Many may need additional funding to survive until a Covid vaccine is broadly spoon out and the economy rebounds.
Revenue among small businesses fell by nearly a third and 30% of small businesses shuttered in the end year, according to Opportunity Insights.
“They’re hurting badly,” President-elect Joe Biden said in a Thursday night articulation outlining a $1.9 trillion relief package, the American Rescue Plan, which would provide additional confer funding to small businesses.
EIDL grants will only be available to businesses in low-income communities whose take dropped at least 30% over any eight-week period since early March (relative to the same time in 2019).
A nave on businesses located in less wealthy neighborhoods meshes with that of new PPP funding.
That pandemic-era forgivable advance program PPP loans
PPP applicants can get a maximum loan of $2 million in the second funding round. They must cause 300 or fewer employees and a 25% revenue loss (during any quarter of 2020 versus the same prior-year days) to be eligible.
The relief law also scraps an earlier CARES Act requirement that EIDL grants be deducted from the forgivable amount of a PPP accommodation.
Shuttered Venue Operators Grant
A separate grant, the Shuttered Venue Operators Grant program, will liberal to applicants in coming days, too, Clements said.
The federal government is allocating $15 billion for live venue smooths or promoters, museums, movie theaters, theatrical producers and live performing arts venues that lost 25% in yield due to the Covid downturn.
Companies can get initial grants of up to $10 million, and supplemental grants up to half that amount.
The program wishes first open to businesses that lost 90% or more of their revenue.