SBA Loans and Relief for Small Businesses and Hospitality Industry
William Furman, Senior Area Manager for the Small Business Administration South Carolina District office, joined us for an important update on the recently passed stimulus bill and the assistance programs available through the SBA.
He discussed the current round of funding and the new loan and relief programs that are aimed at more intentionally helping struggling small businesses and businesses in the accommodation and hospitality industry.
This round of economic aid funding was intended to support the hardest-hit small businesses and those in underserved segments, including women, minorities and veterans.
As a part of the CARES Act, SBA is authorized to pay 6 months of principal, interest, and any associated fees that borrowers owe for all 7(a), 504, and Microloans reported in regular servicing status (excluding PPP loans)
Borrowers need not apply for this assistance. SBA provides this assistance automatically as provided below:
– For loans not on deferment, SBA will make monthly payments based on the next payment due on eligible loans for a total amount equivalent to no more than 6 months of installment payments. – For loans currently on deferment, SBA will begin making monthly payments with the first payment due after the deferment period ends for a total amount equivalent to no more than 6 months of installment payments.
Only for targeted businesses, don’t apply for it; no action is required until contacted by SBA
Will balance out a previous EIDL Advance to the full $10,000 if the business is 1) in a low-income community; 2) suffered greater than 30% economic loss; and 3) has 300 or fewer employees
Applications not yet open; will need SAM.gov registration to apply
Eligible entities
– Live venue operators or promoters – Theatrical producers – Live performing arts organization and motion picture theater options – Relevant museum operators, zoos and aquariums who meet specific criteria – Talent representatives – Up to five business entities owned by an eligible entity that also meet the eligibility requirements
Plus
– Must have been in operation as of Feb. 29 2020 – Must not have applied for/received PPP loan on or after December 27, 2020