To apply or learn more, contact KSBDC ‘coaches’ in Covington
COVINGTON, Ky. –Small businesses in Covington affected by the COVID-19 pandemic are encouraged to reach out to business “coaches” located in the City and inquire about two federal financial assistance programs available today:
- The Paycheck Protection Program, or PPP.
- The Economic Injury Disaster Loan (EIDL) program.
“We’re here to help,” said Lisa Brann, business coach at the Kentucky Small Business Development Center (KSBDC) in Covington. “This is a great opportunity that too many businesses aren’t taking advantage of. Any business owner who needs help should read this information and, if they have questions, contact us.”
City officials agreed.
“We encourage all of our businesses to tap into the no-cost resources and support provided by the Center,” said Ross Patten, assistant economic development director at the City of Covington and also chairman of the advisory board for the KSBDC. “The Center is an incredible resource for our businesses, and with an office right here in The Cov, it is easier than ever to connect with their business coaches and get the assistance you need.”
Officials from the SBDC provided the following details about the assistance programs:
2nd round of PPP:
The program – run by the U.S. Small Business Administration in consultation with the U.S. Department of the Treasury – re-opened today for new borrowers and certain existing PPP borrowers.
To promote access to capital, initially only community financial institutions will be able to make First Draw PPP Loans today and Second Draw PPP Loans starting Wednesday. The PPP will open to all participating lenders shortly thereafter.
This round of the PPP prioritizes millions of Americans employed by small businesses by authorizing up to $284 billion toward job retention and certain other expenses through March 31, 2021, and by allowing certain existing PPP borrowers to apply for a Second Draw PPP Loan.
Among the changes in Round 2:
- PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their needs.
- PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures.
- The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, direct marketing organizations, among other types of organizations.
- The PPP provides greater flexibility for seasonal employees.
- Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount.
- Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.
A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
- Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses.
- Has no more than 300 employees.
- And can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
To help restaurants, the National Restaurant Association distributed a seven-page “white paper” that can be seen HERE.
- The deadline for applying for an Economic Injury Disaster Loan (EIDL) was extended to Dec. 31, 2021, and you can apply HERE.
- Loans are offered at a 3.75% interest rate for small businesses and 2.75% interest rate for nonprofit organizations, a 30-year maturity, and an automatic deferment of one year before monthly payments begin.
- Businesses that already received funds can request a reconsideration for additional funds by emailing email@example.com. They should include their original application number, business name and Federal Tax ID. The request must explain the hardships and what the funds will be used for. Also include the operating capital and normal operating expenses, such as continuation of health benefits, utilities, fixed debt payments etc.
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