Small and Medium Sized Businesses
Small Businesses Forgivable Loans and Grants
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The American Rescue Plan included an additional $7.25 billion for the SBA’s Paycheck Protection Program (PPP), and expanded eligibility of 501(c) nonprofits of all sizes and types, except for 501(c)4 lobbying organizations.
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PPP loans can be forgiven when used for payroll costs (including paid leave, health care, and other costs) to retain workers, and for other expenses such as rent, mortgage interest, and utilities. Independent contractors, sole-proprietors, and other self-employed persons are eligible for these loans.
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Additionally, Congress extended the PPP program through May 31, from March 31, and gave SBA an additional 30 days to process loans.
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Small businesses, tribal business concerns, nonprofits, and veterans’ organizations in your district should contact their lender and the Small Business Administration office directly.
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The American Rescue Plan included an additional $1.25 billion for SBA’s Shuttered Venue Operators Grant program, bringing the total amount available to more than $16 billion, including a set aside for technical assistance to help eligible small businesses apply for these grants.
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Eligible applicants may qualify for grants based on the product of a formula applied to their 2019 earned revenue (minus any PPP loan amount received after Dec. 27, 2020) or $10 million, whichever is less. $2 billion is set aside for businesses with 50 or fewer employees.
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To learn more about the SVO Grant program and eligibility and application guidelines, please click here.
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The American Rescue Plan established the SBA’s Restaurant Revitalization Fund and provided $28.66 billion for restaurants and other food and drinking establishments hard hit by the pandemic with $5 billion set aside specifically for smaller establishments with less than $500,000 in 2019 annual revenue and $500 million set aside for very small establishments with 2019 annual revenue of not more than $50,000.
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During the first 21 days, applications from restaurants owned and operated by women, veterans, or socially and economically disadvantaged individuals will receive priority consideration.
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RRF grants may be used for a wide variety of expenses, including payroll, mortgage payments, rent, utilities, supplies, food and beverage expenses, paid sick leave and operational expenses.
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To learn more about the RRF Grant program and eligibility and application guidelines, please click here.
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The American Rescue Plan provides an additional $15 billion for Targeted Economic Injury Disaster Loan (EIDL) grants to help those who applied for EIDL relief in 2020 but did not receive the full $10,000 grant.
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To learn more about EIDL grants and eligibility, please click here.
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The American Rescue Plan established a $10 billion State Small Business Credit Initiative to support up to $100 billion in small business financing through state, territorial and Tribal government programs.
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Click here to see the Treasury Department’s preliminary allocations for the State Small Business Credit Initiative.
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To learn more about the SSBCI, please click here.