Small Business Information
Find information regarding the new stimulus bill legislation that was recently signed into law. It provides several important changes to previously issued COVID-19 relief programs.
Paycheck Protection Program Reopened
- The Paycheck Protection Program is reopened with over $284B available for new loans.
- $15B in funding for Live Venues
- $20B for New Economic Injury Disaster Loan grants for businesses in low-income communities.
Limited Eligibility for Second Round PPP Loans:
- Available to first-time qualified borrowers
- Available to borrowers that previously received a PPP loan
- Second-time borrowers must have 300 or fewer employees.
Maximum Loan Amount:
Borrowers have an option to calculate the maximum loan amount by multiplying the borrower’s average total monthly payroll:
a) the one-year period prior to the date on which the loan is made, or
b) calendar year 2019, by 2.5x.
The maximum loan amount in the second round is $2 million.
Maximum Loan Amounts for the Hospitality Industry:
Borrowers that have NAICS Code 72 (typically restaurants and hotels) are permitted to use a 3.5x multiplier of their average monthly payroll costs to calculate their maximum loan amount, subject to the $2 million cap.
Use of PPP Funds: Congress expanded the types of expenses for which PPP loans can be used, which applies to existing PPP loans (except in the event forgiveness has already been obtained) and new loans. In addition to payroll, rent, covered mortgage interest and utilities, the PPP now allows proceeds to be used for:
- Covered Operations Expenditures
- Covered Property Damage Costs
- Covered Supplier Costs
- Covered Worker Protection Expenditures
CareerSource South Florida Announces Layoff Aversion Fund
Grants are available up to $10,000 and designed to prevent layoffs and/or minimize the duration of unemployment resulting from layoffs due to COVID-19. Access the Layoff Aversion Fund at http://www.careersourcesfl.com/LayoffAversion_MDBC.
Webinar – COVID-19 Keeping Your Business Alive
Broward SCORE recently hosted the webinar “Staying Afloat in a COVID-19 World for Small Business”. If you missed it, you can watch it here.
Short Time Compensation Program
The Short Time Compensation program helps employers retain their workforce in times of temporary slowdown by encouraging work sharing as an alternative to layoff. This program permits prorated reemployment assistance benefits to employees whose work hours and earnings are reduced as part of a Short Time Compensation plan to avoid total layoff of some employees. Apply here.
Emergency Bridge Loan Program
Managed by the Florida Department of Economic Opportunity (DEO), this bridge loan program will provide short-term, interest-free loans to small businesses that experienced economic injury from COVID-19. Applications will be accepted through May 8, 2020. This will provide a source of working capital intended to help the business “bridge the gap” between the time of impact and when federal assistance is available. Apply here.
• Amount: Up to $50,000 per eligible small business. Loans of up to $100,000 may be made in special cases as warranted by the need of the business.
•Term: Loans may be made for periods of up to one year.
• Interest: Loans will be interest-free for the term of the loan.
• Payments: Loans must be repaid in full by the maturity date of the established term.
• Qualifications: Applications will be accepted by qualified for-profit, privately held small businesses that maintain a place of business in the State of Florida. All qualified applicants must have been established prior to March 9, 2020, and suffered economic injury as a result of the designated disaster. Qualified small business applicants must be an employer business with 2 to 100 employees.
Economic Injury Disaster Loan Program
The U.S. Small Business Administration is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). The program makes loans of up to $2 million that can provide vital economic support to small businesses and private, non-profit organizations in designated areas of a state or territory to help alleviate economic injury caused by COVID-19. Apply here.