SALT LAKE CITY – As dozens of small businesses across the country struggle to stay afloat, financial aid is desperately on the way.
Congress on Monday approved the Economic Assistance Act for small businesses, nonprofits and severely affected locations – a $ 325 billion aid package that was part of COVID-19’s global aid spending and aims to provide additional assistance. expected worst local business sufferers, non-profit organizations and entertainment facilities that continue to fight to return to the effects of the coronavirus pandemic.
“Last time, it was a huge help. I was able to keep my staff running for another month and a half. Unfortunately, after the funding ended, I had to let most of them go,” he said. Molly Kohrman, owner of the Brownies! Brownies! Brownies! in Sugar House, which applied for loans from the Coronavirus Aid, Relief, and Economic Security Act in the fall. “We had seven pre-pandemic employees. We have now dropped to two and will probably drop to one next month. The additional funding would make a huge difference if we can stay open for a few more months or if we close in a few months.
“I know of several companies in the area, in the food industry, in particular, that either reduce their services – whether it’s hours or product lines or staff – make big cuts in the next month or so, hoping they can stay. open still, “Kohrman said.” But I know a lot of them are just playing it day in and day out. “
She said the pandemic has been so tough in terms of revenue that she worries if her store will be able to do it in the long run.
“If something doesn’t change in the very near future, then I’m looking at the final closure,” Kohrman said.
For this latest emergency aid package, the act provides a second round of forgivable loans to small businesses through the Wage Protection Program. The plan brings PPP improvements, funding grants for outbreaks, and adopting emergency improvements for other US Small Business Lending programs.
“This critical assistance will provide small business owners with the capital they need to survive the pandemic and includes essential resources for local small businesses and nonprofits in Utah,” said Marla Trollan, director of the Utah District Office of the Small Business Administration. .
“In response to the new legislation, we will once again raise our rapid response team and train them directly to answer general questions received for us and receive recommendations for more technical questions and creditors’ questions,” she said.
Contact information will be provided as soon as the team is formed, she said.
Small business owners and nonprofits can subscribe to the UBA SBA newsletter at www.sba.gov/offices/district/ut/salt-lake-city, and check for updates on Twitter: @SBA_Utah to keep abreast of new programs and any changes that could be implemented in the coming weeks, SBA Utah District spokesman Siobhan Carlile explained.
Some of the key points of the new federal aid package include the creation of a second round of PPP loans for eligible companies, the definition of eligibility requirements for secondary PPP extraction as entities with up to 300 employees and those that can demonstrate a reduction of at least 25 % in gross revenues between comparable quarters in 2019 and 2020, said a press release.
The new plan sets a maximum loan amount 2.5 times higher than the company’s average monthly salary costs – up to $ 2 million. The program also allows small businesses in the accommodation and food services sector to receive PPP loans equal to 3.5 times the average monthly wage costs, to help those companies alleviate state and local restrictions they have. affected the results.
Borrowers receive full forgiveness of the loan if they spend at least 60% of their next PPP loan on salary costs over a chosen period of eight to 24 weeks, the statement said.
The program states the eligibility of churches and religious organizations, while prohibiting a future White House administration from designating them as ineligible. The act also preserves the application of affiliation rules for nonprofits, making Planned Parenthood ineligible.
The plan includes specific provisions supporting PPP debtors for the first time with 10 or fewer employees, PPP debtors for the second time with 10 or fewer employees, first-time PPP debtors who have been newly elected, and returning PPP debtors to the second time. The plan also provides for a reservation for loans granted by Community creditors, the statement said.
For more information about the new aid package and its funding programs, visit the SBA Utah District Office website or call 801-524-3209.