While the SBA is not a local agency, local businesses will be eligible for an economic injury disaster loan. SBA COVID-19 Small Business Guidance and Loan Resources.
And here's a new Coronavirus Relief Options website
- The American Rescue Plan (ARP) will fund Virginia's small business support and capital access programs, provide collateral support, facilitate loan participation, and enable credit guarantee programs. It will boost the state's venture capital programs and provide funding for technical support and assistance. ARP extends a number of critical tax benefits to small businesses that are intended to help businesses through to the recovery while keeping up their payrolls and still taking steps to protect health outcomes for employees. For example, businesses can take dollar-for-dollar tax credits equal to wages of up to $5,000 if they offer paid leave to employees who are sick or quarantining. Paid Leave Credits are a powerful incentive to encourage the offer of paid sick and family leave, which will help keep the virus under control by ensuring sick employees can stay home. Check with your accountant about this and other tax credits and benefits.
The application window for Paycheck Protection Program (PPP) Loans is open for lenders with $1 billion or less in assets. PPP reopened initially for community financial institutions (CFIs) to make loans to first-time PPP borrowers
. CFIs were allowed to make second-draw loans to borrowers starting January 20. Borrowers can apply for first- and second-draw loans until May 31, 2021 or until the $284 billion appropriation is exhausted. NEW - $7.25 billion in new money for the PPP
in the March 10th COVID Relief bill allows more nonprofits to apply
, including those groups that engage in advocacy and some limited lobbying. It also allows larger nonprofits to be eligible. Eligibility – First Draw Borrowers
• Eligible small entities, that together with their affiliates (if applicable), have 500 or fewer employees—including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors—can apply. Entities with more than 500 employees in certain industries that meet SBA's alternative size standard or SBA's size standards for those particular industries can also apply.
• Businesses with a NAICS Code that begins with 72 (Accommodation and Food Services sector) or eligible news organizations with no more than 500 employees per physical location, as well as housing cooperatives, 501(c)(6) organizations, or destination marketing organizations with no more than 300 employees. Eligibility – Second Draw Borrowers
• Previously received a first-draw PPP Loan and will or has used the full amount only for authorized uses
• Has no more than 300 employees; and
• Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020. Next Steps
Borrowers should contact their lender to determine when they will begin accepting applications and the process to submit an application. Borrowers are urged to evaluate their eligibility for a first or second draw loan based on the criteria published by the SBA and Treasury.
For more information about available SBA resources and services, please visit: SBA.gov/coronavirus
.Here's a helpful side-by-side comparison
of SBA's Economic Disaster Loan with the Paycheck Protection Loans, available through banks and credit unions. Additional information and applications for each kind of loan are linked at the end of the comparison sheet.
While you await the opening of the lending portal, you should begin to familiarize yourself with the applications, assess your eligibility for a first draw or second draw loan and gather information needed to complete the application, which can be found at Form 2483 – First Draw Borrower Application
or Form 2483-SD – Second Draw Borrower Application