National Small Business Town Hall from Inc. & U.S. Chamber of Commerce: Small Business Resources
By: Sean Ludwig, CO— Contributor

This week, Congress passed a new $484 billion coronavirus aid package that includes $310 billion in additional funding for the Paycheck Protection Program (PPP). The PPP — part of the CARES Act — was designed to help small businesses maintain payroll during this period of uncertainty, so this new round of funding is an important development for small employers.

At the fifth National Small Business Town Hall, held on April 24 by the U.S. Chamber of Commerce and Inc., a panel of experts discussed the replenishment of the PPP program, small lender carve-outs, new guidance on 1099 earners, and more.

During the Town Hall, Inc. editor-at-large Kimberly Weisul spoke with several business leaders, including Neil Bradley, Executive Vice President and Chief Policy Officer at the U.S. Chamber of Commerce; Eugene Cornelius, Senior Director for Center for Regional Economics at Milken Institute; Sarah Jennings, Principal of Accounting and Outsourced Solutions and Director of Strategic Initiatives and Community Engagement at Maner Costerisan; Michelle Sourie Robinson, President and CEO of the Michigan Minority Supplier Development Council; and Bridget Wetson, Acting CEO of SCORE.

Here are eight important takeaways (among many) from the panel that can provide guidance for the many American small businesses trying to navigate federal aid programs.

Funds will be replenished for PPP loans soon

Congress has passed $310 billion in new funding for PPP, with the President expected to sign the bill into law shortly. Bradley said this means any companies who have already applied for a PPP loan with banks are still in line to be considered as soon as the Small Business Administration (SBA) has the funds.

If you received a PPP loan and want to return it, you can

Bradley notes that some businesses that did not actually need a PPP loan did, in fact, get one. Some of those businesses have since returned the loan money and any company that wants to return the loan quickly can do so without penalty.

Smaller banks and credit unions are guaranteed some new PPP money

Of the $310 billion this new bill allocates, $60 billion in PPP loans will go to smaller banks and credit unions. Effectively, this means small businesses that only have a relationship with a smaller lender have a better chance of getting a PPP loan in this wave of funding.

“This will help some [small businesses] in underserved communities have a better opportunity to get loans,” Bradley said. “We know those institutions happy to serve a lot of minority or women-owned [businesses]. That will really help.”

The EIDL loan program was replenished as well

The Economic Injury Disaster Loan (EIDL) program from the SBA has also been replenished, with Congress setting aside $50 billion in loans and $10 billion in cash grants. EIDL loans and grants can help with non-payroll expenses such as rent and utilities.

“When you can begin to apply [with the SBA], you should,” Bradley said. “It’s not a guarantee that you’ll get money and remember this program is particularly slow.”

Be careful with tax credits and PPP

Bradley said employers should be careful when taking advantage of new tax credits and PPP simultaneously. If a company accepts a PPP loan, then they are not eligible for the Employee Retention Tax Credit. And if a company opts for Payroll Tax Deferment, they cannot accept PPP loan forgiveness. (And, of course, talk to a financial advisor if you need more clarity.)

How to find alternative lenders to work with

Small businesses that can’t find a lender to work with on PPP have more options now. Robinson suggested looking through SBA-approved lenders and review them all, even non-traditional lenders, to find places to apply. She also mentioned PayPal and Square as good options for small businesses seeking a PPP loan.

Self-employed individuals should not take both PPP and unemployment.

In an important note of clarity for 1099 earners and the self-employed, Jennings said that they should not take both a PPP loan and unemployment so they are not penalized. Jennings said you can apply for a PPP loan and take unemployment until you receive the loan.

If your small business hasn’t already applied for PPP, you should immediately

While there has been some uncertainty about the program since money ran out previously, small businesses should still be trying to apply.

For the full townhall video, click here.

By Corina Vanek – Reporter, Phoenix Business Journal

Apr 14, 2020

Phoenix IDA, formerly known as the Phoenix Industrial Development Authority, is offering grants up to $10,000 for Phoenix-based small businesses impacted by the closures due to novel coronavirus.

The organization — which has partnered with the Arizona Community Foundation, Arizona Public Service Co. and the Phoenix Community Development and Investment Corp. — has a fund of $2 million available to be distributed as grants.

“We generate revenue from services and try to invest back into the community,” said Christa Severns, spokeswoman for the Phoenix IDA. “When COVID-19 hit, we saw an opportunity to help small businesses. We will allocate the funds to help small businesses experiencing economic distress.”

To qualify for a grant, the business must:

• Be based within the city of Phoenix;

• Have been in operation before Jan. 1, 2019;

• Have its physical establishment in a low-income census tract or on a street bounding a low-income census tract;

• Have no more than 25 employees as of Feb. 1, 2020;

• Have no more than $3 million in gross total sales between Jan. 1, 2019 and Dec. 31, 2019;

• Have gross total sales decline by at least 25% in February and March 2020 as compared with February and March 2019 and have the ability to prove the pandemic has caused financial distress.

The portal to apply for the grants will be open until the $2 million has been distributed. Applicants should expect a minimum of 10 days between applying and receiving the grants, but processing should take no more than 15 business days, Severns said.

To apply for a grant, visit: azfoundation.org/smallbusinessrelief

In response to the COVID-19 pandemic, Local First Arizona and its community partners are launching a fund to provide mini-grants to Arizona’s smallest, locally owned, independent enterprises. These micro-entrepreneurs — businesses with 0-3 employees and less than $250,000 in annual revenue (approximately $35k-$45k in net profits) — need immediate assistance to sustain the impact from decreased business and cash flow caused by the shut down of our economy. We are calling upon the community, from corporate partners to individuals just like you, to help our entrepreneurs by donating to the fund. Each donation is tax deductible and supports a family owned business by providing a mini-grant that offers much needed financial support through the duration of this crisis.

ANY INDIVIDUAL OR COMPANY INTERESTED IN HELPING FAMILY-OWNED BUSINESSES IN OUR STATE CAN DONATE TO THE FUND.

Applying for Assistance

Micro-entrepreneurs struggling to surmount the financial impact of the novel coronavirus may apply for funds to cover business expenses, employee salaries, and other operation-related costs.

Regional review panels (northern, central, and southern Arizona) of business owners assembled by Local first Arizona will review applications weekly. Within 7 days of review, applicants will be informed of their standing for a Small Business Relief grant: approved, pending future consideration, or declined. Once approved, funds will be distributed within 5 business days.

Local First Arizona is attempting to serve as many individuals and families in need as possible; there will not be enough funding for everyone. Please read the blow criteria and determine if you’re a good fit before applying:

For more information visit: Local First Arizona