PPP Loan Period For Small Businesses
Until March 9, businesses with fewer than 20 employees will have exclusive access to apply for PPP loans.
On February 22, 2021, the Biden-Harris administration announced the following changes to the PPP program to further promote equitable access to relief. Please click to read the White House Fact Sheet.
- Institute a 14-day period, during which only businesses with fewer than 20 employees can apply for relief through the Program.
- The 14-day period will start on Wednesday, February 24, 2021 at 9 am and end on March 9th, 2021. Loans with 20 or more employees will be rejected during this period.
- All loans (regardless of employee count) submitted to SBA prior to February 24th will be processed as normal.
- Help sole proprietors, independent contractors, and self-employed individuals receive more financial support.
- A change to the calculation formula will be implemented to help sole proprietors, independent contractors, and self-employed individuals receive more financial support.
- Eliminate a restriction preventing small business owners with prior nonfraud felony convictions from obtaining relief through the PPP.
- Eliminate the rule that prevents small business owners who are delinquent on their federal student loans from obtaining relief through the Paycheck Protection Program.
- Allow non-citizen small business owners who are lawful U.S. residents to use individual taxpayer identification numbers (ITINs) to apply for relief.
Treasury/SBA are working on program changes and will communicate details throughout this week, according to a fact sheet provided by Georgia Primary Bank.
If you have questions regarding your PPPSD application please contact your assigned PPP Lender directly. Your lender will be able to answer Treasury/SBA policy questions, however lenders are unable to provide any tax or accounting advice outside of written Treasury/SBA guidelines. Georgia Primary Bank encourages borrowers to contact their CPA, Bookkeeper or the local Small Business Development Center for help with technical questions.
Affordable Care Act Enrollment Reopened
The Affordable Care Act Open Enrollment period has reopened (Feb 15 – May 15th)
By Bob Smith, GABB Affiliate and Licensed Health & Life Insurance Agent
It has been almost 12 months since we began experiencing challenges brought to bear by the COVID-19 virus. The challenges have been on multiple fronts leaving few people unscathed. Due to no fault of their own, many individuals have been impacted by business closures creating an unenviable reality of lost employer sponsored group health insurance. Being able to afford monthly premiums with the loss of income can make shopping for health insurance devastating. This at a time when being without health coverage can cause a family a medical and financial crisis.
The Federal Government recently addressed this potentially dire situation by reopening of the Affordable Care Act Open Enrollment period. Effective February 15 thru May 15 individuals have an opportunity to select health insurance on the Federal Marketplace at healthcare.gov. Subsidies based upon estimated 2021 income can lower monthly premiums making the health plans affordable during this difficult time.
No one can anticipate the unexpected and being without health insurance creates a vulnerable situation. In order to avoid the medical and financial consequences of an illness, accident or injury it’s important to be proactive before the window of opportunity closes.
Selecting coverage that addresses a family budget can present pitfalls while there are resources to help avoid making a mistake in the plan selection process. The process can be confusing when considering provider networks, copays, deductibles and out of pocket maximums, etc. With this in mind consider utilizing the services of a licensed Georgia Insurance Agent who also has been certified by the Federal Government to represent the insurance companies on the Marketplace. In most cases the services provided by agents is at no cost to individuals as they are compensated by the insurance companies.
The Affordable Care Act Open Enrollment will end on May 15 for plans issued June 1, and applications submitted in March will be issued in May. The time to be proactive to secure health insurance is now.
Bob Smith, Licensed Health & Life Insurance Agent
Bob@BobCaresForYou.com
www.BobCaresForyou.com
404-593-9663
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SBA Reaches $200 Billion in EIDL Loans to Small Businesses, Non-Profits
SBA Reaches $200 Billion Milestone in Economic Injury Disaster Loan Program to Small Businesses and Non-Profits
WASHINGTON –Today, the U.S. Small Business Administration reached a milestone in the success of the COVID-19 Economic Injury Disaster Loan (EIDL) program, which has provided U.S. small businesses, non-profits, and agricultural businesses a total of $200 billion in emergency funding.
“Following the enactment of COVID-19 emergency legislation, the SBA has now provided more than 3.7 million small businesses employing more than 20 million people with $200 billion through the unprecedented COVID-19 EIDL loan program,” Acting Administrator Tami Perriello said. “SBA remains committed to helping small businesses recover from the unprecedented economic effects of COVID-19.”
SBA is still accepting COVID-19 EIDL loan applications as the deadline to apply has been extended to Dec. 31, 2021. EIDL funding is used to pay fixed debts, payroll and expenses, accounts payable and other bills that can’t be paid because of the disaster’s impact. This financial resource has allowed millions of small business owners across America to retain employees, continue operating and support their communities during the COVID-19 pandemic.
The Georgia Association of Business Brokers has a number of bankers who have expertise in handling SBA loans. Locate one of GABB’s loan experts at our professional directory.
SBA’s Economic Injury Disaster Loans are just one piece of the expanded focus of the federal government’s coordinated response. The SBA is strongly committed to providing the most effective and customer-focused programs possible.
As a reminder, the loan portion of the COVID-19 EIDL program continues to have funds available at very affordable and flexible terms, with an automatic deferment of one year before monthly payments begin. Every eligible small business and non-profit is encouraged to visit sba.gov/coronavirusrelief to get more information about applying for EIDL and other economic recovery programs.
The Georgia Association of Business Brokers has a number of bankers who have expertise in handling SBA loans.
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About the U.S. Small Business Administration
The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.
Read MoreWhy Businesses Get Into Trouble
No two companies are quite alike, and this also means that there are many reasons why companies can fall into trouble. While the number of variables involved in operating a company are practically endless, there are a handful of reasons why companies can fall on hard times. Let’s take a closer look.
Lacking Focus
Companies that lack focus can often run into considerable trouble. Not understanding their customers and what they need or want can lead to endless problems. It is vital that companies frequently stop and assess who their customers are and whether or not they are properly servicing their needs.
Management Problems
Not too surprisingly, many companies can run into trouble because of poor management. Management problems are not one-dimensional, but instead take a variety of shapes. Management that isn’t focused, is incompetent, or simply doesn’t care about the business can translate into a business’s premature death.
Under the umbrella of “management problems” also falls such missteps as poor financial controls, quality control problems, operational issues, and/or not keeping up with technological advancements. At the end of the day, many of the problems on our list have at least some management issue missteps at their heart.
Loss of Key Employees or Clients
The loss of a key employee or a key client can spell serious trouble. Of course, no management team can predict every eventuality. However, when there is a loss of a key employee or client, and there is no plan for replacement, then management does shoulder at least some of the blame. The savviest companies take steps to ensure that there are ways to replace the most important employees and clients.
Failure to Compete
More than one business has been buried by the competition or failure to see a new wave of competition coming. For example, countless mom and pop video rental stores were absolutely bludgeoned by the introduction of Blockbuster Video a generation ago.
While it is true that sometimes market forces are so aligned against a business that survival is almost impossible, that is normally not the case for most businesses on a year-to-year basis. The most effective and competent management can see the competition out on the horizon. Or at bare minimum, they have an emergency plan in the event that the competition becomes more intense.
All too often by the time a business realizes that it is in trouble, it is already too late. If the problems can’t be fixed, then it may be time to consider selling the business. But such decisions must be made quickly in order to prevent additional bloodletting.
Optimally, a business is sold while it is doing well. Regardless of whether a business is thriving or experiencing difficulties, a business broker or M&A advisor can be an invaluable ally in helping a business reach its full potential.
Copyright: Business Brokerage Press, Inc.
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SBA Improves First Draw Paycheck Protection Program Loan Review
WASHINGTON – The U.S. Small Business Administration is taking steps to improve the First Draw Paycheck Protection Program loan review so that small businesses have as much time as possible to access much needed PPP funds. The Biden-Harris Administration is focused on ensuring small businesses receive the support they need to keep their doors open and continue to employ millions of Americans across the country. The Administration is working with the Agency to identify immediate solutions to address eligibility, compliance, integrity, and promote transparency.
While reviewing the initial draw of PPP loans, anomalies – mostly data mismatches and eligibility concerns – were identified in approximately 4.7% of the lender-submitted data. These concerns will require follow-up between the lender and the borrower so that borrowers can access a second round of loans.
The SBA is committed to working with lenders and eligible borrowers to provide the necessary information for follow-up and help get small businesses back on track so that they’re able to receive another round of PPP loans swiftly. The SBA encourages borrowers and lenders to work together as quickly as possible to resolve the issues. The SBA will automatically move favorable decisions to approval. During the newest round of PPP, the SBA has already approved over 400,000 loans for approximately $35 billion.
“Prior to this newest PPP round, the SBA supported 5.2 million PPP loan borrowers, providing more than $525 billion in economic relief to small businesses and other eligible entities,” said SBA Acting Administrator Tami Perriello. “The Agency is committed to making sure compliance checks are executed on the front-end. The SBA is also committed to addressing issues more efficiently moving forward, to ensure fair and equitable access to small businesses in every community.”
The SBA is immediately addressing the PPP loan review to allow for Second Draw PPP loan applications to be processed in an efficient manner by:
- Hosting a national call to brief lenders on the Platform’s additional detailed information that will assist in the resolution of First Draw PPP loan review and potential holds that impact Second Draw PPP loan application approvals.
- Equipping the Agency’s field team of lender relations specialists with information so they can provide support to lenders and borrowers in understanding the issues and facilitating the appropriate responses to resolve
- Providing additional guidance to PPP lenders on the review and resolution process.
Many Affiliate members of the Georgia Association of Business Brokers are working with the SBA and the PPP program. Find a GABB SBA loan expert here.
Through SBA’s 68 district offices, the Agency will work in close partnership with the Administration to further leverage its resource partner network and expand on multilingual access and outreach about the PPP. Updated PPP information, including forms, guidance, and resources is at www.sba.gov/ppp and at the U.S. Treasury Department’s www.treasury.gov/cares.
How to Resolve First Draw PPP Loan “Unresolved Borrowers” and Hold Codes: PPP Procedures Webinar Slide Deck
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