Last year's stimulus packages provided millions in financial relief for businesses left struggling during the pandemic. Yet the guidelines and rules were often difficult to understand — and a recent announcement about additional funding did little to alleviate those questions.
Here are some details regarding the latest iterations of relief programs for small businesses:
* The language is confusing on the federal Small Business Administration (SBA) website, but the bottom line is this: Yes, you can get a second Paycheck Protection Program (PPP) loan; and no, you cannot get a second EIDL (Economic Injury Disaster Loan).
* The SBA expanded the EIDL earlier this year, meaning qualifying businesses could request more money after being contacted by the SBA. However, new applications would not be processed, nor would there be second loans.
* Qualifying businesses can apply for a second PPP loan with the same general loan terms as the first. These can be used to help fund payroll costs, including benefits.
* Although you can't apply for a new EIDL, some businesses are eligible for more money. This can be via loan increases or through the grant (also known as the advance).
* The SBA raised the loan limit from a maximum of $150,000 to a maximum of $500,000.
* Businesses that didn't receive the grant or that received partial grant money get a second chance via the Targeted EIDL Advance. Eligible businesses need to have fewer than 300 employees, have experienced a 30 percent of greater loss of revenue between 2019 and 2020, and be located within a low income area. The maximum still totals $10,000, so any grant money you received last year would count toward that total. The advance doesn't need to be paid back.
