How important was the program to small businesses?

• More than half the loans and nearly a third of the loan money were distributed in 2021.
  
• The average loan size was $46,000 (less than half the $101,000 average loan in 2020. )
  
• Companies were drawn to the loans because they promised forgiveness if the money is used for payroll and other essentials.

Other SBA administered disaster loan programs | Click to find information regarding other SBA programs, including some designated for specific small business categories like restaurants and theaters..

“Main Street is doing better as state and local restrictions are eased, but finding qualified labor is a critical issue for small businesses nationwide Small business owners are competing with the pandemic and increased unemployment benefits that are keeping some workers out of the labor force. However, owners remain determined to hire workers and grow their business.”‘

NFIB Chief Economist Bill Dunkelberg

30% | Percentage of employers offering higher wages.

Dunkelberg said businesses have to compete with the amount of money people are receiving in unemployment benefits. “And, of course, they’re competing with each other for the people who are qualified.”

Other key survey findings include:

• Seven of 10 NFIB survey components improved and three declined.
• Sales expectations over the next three months improved eight points to a net 0% of owners, a historically low level.
• Earnings trends over the past three months declined four points to a net negative 15%.
  
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“(Customers) rely more on the internet to research and discover products to buy. For example, search interest for products like the “best exercise bikes,” “best ring lights” and “best air fryers” increased by 100% or more in the last year. Shoppers don’t just turn to Google for things they want to buy on the web; they also use Google to find what they need nearby. Over the past year, we’ve seen a significant increase in commercial intent across Google including Google Search, Google Maps and YouTube,”

Igor Liskovets
Google director online to offline ad solutions

Shopping Nearby with Google Search

Whether it’s to support small businesses in their community or ensure a nearby store has the item they need in stock, consumers are using Google Search to research their shopping trips in advance. 

Here are some examples of the phenomena.

• Searches for “local” + “business(es)” have grown by more than 80% year over year, including searches like “local businesses near me” and “support local businesses.”
• Searches for “who has” + “in stock” have grown by more than 8,000% year over, including searches like “who has nintendo switch in stock” and “who has gym equipment in stock.”

Google has seen an increase in online research before heading out to a restaurant or to get takeout.

At Google, the company recently found that:

• 66% | Percentage of dining consumers who said they used search to find food and beverage information during the pandemic.
• 57% | Percentage of dining consumers who said they discovered food and beverage information during the pandemic via online ads.

Exploring new products on YouTube

YouTube has become a part of not just the shopping process, but the local shopping process too. For example:

• 45% | Percentage of viewers say they watch YouTube to see a product demo before buying.
• 2% | Percentage of viewers say they are 2x more likely to go in-store or online to buy something they saw on YouTube versus the competitive average.

Starting their journey on Google Maps

Google Maps has become a more critical part of the local user experience, as people use maps to explore something they’re interested in, versus just for navigation:

• Searches on Google Maps for “curbside pickup” have increased 9000% year over year in the U.S.
• Searches on Google Maps for “discounts” have grown globally by more than 100% year over year.
• Searches on Google Maps for “gift shop” have grown globally by more than 60% year over year.

Visits to local stores and restaurants continue to be top of mind in the new year:

Top Generic Searches on Google Maps:

• restaurants
• hotels
• restaurants near me
• gas
• food
• food near me
• grocery store
• gas station
• coffee
• pizza

Top Brands Searched on Google Maps:

• walmart
• starbucks
• home depot
• target
• mcdonald’s
• costco
• chick fil a
• walgreens
• cvs
• bank of america

Source: Google Data, U.S., February 2021

Connect offline shoppers to your store.

1. Support your local small business: In 2020, Google helped drive over two billion direct connections, including phone calls, requests for directions, messages, bookings and reviews for U.S. businesses.

2. If you run a business with physical stores: It’s crucial to make sure your customers can easily find you online. Check our Google’s best practices guide on how to drive offline sales with online ads. 

• GOOGLE ADS
• Thanks to Igor Liskovets, Google director online to offline ad solutions
• GettyImage
  
  
  

The House and Senate had already approved the extention with bi-partison support. Congress and the President did not have to allocate any new funds with today’s extension. The PPP has about $110 billion left to lend.

Through March 7, the PPP has approved 2.4 million loans worth about $165 billion.

• Under the new rules announced by the Biden administration at the end of February, businesses with fewer than 20 employees received an exclusive two-week period to apply for loans.
• Bigger companies were shut out of the program during that time frame, part of an effort to ensure the hardest-hit businesses can receive the aid they need.
• Businesses can choose to spend the funds over any period of time between eight and 24 weeks. At least 60% of the money must be spent on maintaining payroll in order to receive full forgiveness.
• The average loan across all industries has been $64,428.

The PPP allows the loans to be forgiven if the borrower spends the funds in accordance with SBA guidelines. Those regulations permit outlays for payroll, rent, mortgage payments and utilities, among other charges.

The Paycheck Protection Program Extension Act will allow loan applications to the program—currently set to expire on March 31—for two more months and give the Small Business Administration 30 additional days to process loan applications made by the new May 31 deadline.

“This legislation will help ensure that small businesses that have already applied for a PPP loan will be able to get that loan processed, rather than risk seeing this program end before their paperwork can be completed. It will also provide more time for still-struggling small businesses that have not yet applied for a PPP loan to do so,”“Providing an additional two months for small business borrowers to access PPP funding and an extra month for SBA to process PPP loans is a common-sense step that will support the economic recovery.”

Rob Nichols
President and CEO. American Bankers Association

Earlier last week, the SBA noted that two million PPP applications have been held up by error codes and approximately 190,000 applications remain unapproved. This reinforces the great need for extending the loan application deadline.

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President Biden signed his 1.9 Trillion Covid-19 stimulus plan into law today (March 11, 2021). With the passage of the legislation complete, a challenging effort begins to implement one of the largest stimulus measures in U.S. history. Here are some provisions related to small businesses.

• $1,400 stimulus checks for some Americans
• Extension of pandemic unemployment benefits
• Billions of dollars in aid to states and municipalities
• $300 weekly unemployment supplement
• Expansion of a child tax credit

According to the Journal of Accountancy, the American Rescue Plan Act includes several additional small business relief provisions, including:

• $15 billion for targeted Economic Injury Disaster Loan (EIDL) advance payments.
• $29 billion for restaurants, bars, and other eligible providers of food and drink.
• $1.25 billion for shuttered venue operators.
  
  

If you own a small business
(See CNN.com)

$15 billion to the Emergency Injury Disaster Loan Program, which provides long-term, low-interest loans from the Small Business Administration. Severely impacted small businesses with fewer than 10 workers will be given priority for some of the money.

$25 billion for a new grant program specifically for bars and restaurants. Eligible businesses will receive up to $10 million and can use the money for a variety of expenses, including payroll, mortgage and rent, utilities and food and beverages.

The Paycheck Protection Program, (additional) which is currently taking applications for second-round loans, wukk get an additional $7 billion and the bills would make more non-profit organizations eligible.

Another $175 million will be used for outreach and promotion, creating a Community Navigator Program to help target eligible businesses.

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The SBA also announced four additional changes to open the PPP to more underserved small businesses.

According to the White House, the enhanced PPP will…

• Allow sole proprietors, independent contractors, and self-employed individuals to receive more financial support by revising the PPP’s funding formula for these categories of applicants

• Eliminate an exclusionary restriction on PPP access for small business
owners with prior non-fraud felony convictions, consistent with a
bipartisan congressional proposal

• Eliminate PPP access restrictions on small business owners who have
struggled to make student loan payments by eliminating student loan debt
delinquency being a disqualifier to participating in the PPP

• Ensure access for non-citizen small business owners who are lawful U.S. residents by clarifying that they may use Individual Taxpayer Identification
Number (ITIN) to apply for the PPP.

According to the President, 400,000 small businesses have closed during the pandemic, and “millions more are hanging by a thread.”

Biden noted that 98% of small businesses fit into this category. By temporarily limiting the approval process to them, the goal is to get more money to ventures that have a harder time accessing capital than their larger counterparts do. 

Links to information prepared by the SBA

• Coronavirus relief options
• Biden Administration takes steps to promote equitable access to SBA relief
• Coronavirus recovery information in languages other than English
• Guidance for businesses and employers
• Local assistance
• Additional SBA resources

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First Draw PPP Loans

An SBA loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis.
Learn more

Second Draw PPP Loans

Eligible businesses may apply for a Second Draw PPP loan.
Learn more

PPP Loan Forgiveness

Borrowers may be eligible for loan forgiveness.
Learn more

PPP Lender Information

Information and resources for lenders participating in the Paycheck Protection Program.
Learn more

PPP Data

Data and reports related to the Paycheck Protection Program.
Learn more

Apply for the Paycheck Protection Program

Find an eligible lender to apply for the Paycheck Protection Program.
FIND A LENDER
Use this SBA map

These links were supplied by the SBA. Before borrowing money from any source, seek advice from a trusted advisor with experience — preferably with the first round PPP.

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• First Draw PPP Loans for first time program participants
• Second Draw PPP Loans beginning January 13, 2021 for certain businesses who have previously received a PPP loan

The SBA is currently accepting Paycheck Protection Program PPP loan applications from participating lenders.

• Lender Match can help connect you with a lender.
• You can also view all lenders near you on a map.

PPP Reopened January 11

First Draw PPP Loans started on Monday, January 11, and Second Draw PPP Loans on Wednesday, January 13.  The PPP will open to all participating lenders shortly thereafter. Updated PPP guidance outlining Program changes to enhance its effectiveness and accessibility was released on January 6 in accordance with the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act.

This round of the PPP continues to prioritize 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.

Key PPP updates include:

• PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business 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; and
• 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.

The new guidance released includes:

• PPP Guidance from SBA Administrator Carranza on Accessing Capital for Minority, Underserved, Veteran, and Women-owned Business Concerns
• Interim Final Rule on Paycheck Protection Program as Amended by Economic Aid Act
• Interim Final Rule on Second Draw PPP Loans.

For more information on SBA’s assistance to small businesses, visit sba.gov/ppp or treasury.gov/cares. 

The U.S. Small Business Administration (SBA), in consultation with the Treasury Department, announced Friday (January 10, 2021) that the Paycheck Protection Program (PPP-2) will re-open the week of January 11 for new borrowers and certain existing PPP borrowers. (The following information was prepared by the SBA.)

Guidelines from the SBA and Treasury Deartment

• To promote access to capital, initially, only community financial institutions will be able to make First Draw PPP Loans on Monday, January 11, and Second Draw PPP Loans on Wednesday, January 13. 
  
• The PPP will open to all participating lenders shortly thereafter. Updated PPP guidance outlining Program changes to enhance its effectiveness and accessibility was released on January 6 in accordance with the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act.
  
• This round of the PPP continues to prioritize 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.
  
• “The Paycheck Protection Program served as an economic lifeline to millions of small businesses and their employees when they needed it most,” said SBA Administrator Jovita Carranza.  “Today’s guidance builds on the success of the program and adapts to the changing needs of small business owners by providing targeted relief and a simpler forgiveness process to ensure their path to recovery.”

“The Paycheck Protection Program has successfully provided 5.2 million loans worth $525 billion to America’s small businesses, supporting more than 51 million jobs. This updated guidance enhances the PPP’s targeted relief to small businesses most impacted by COVID-19.  We are committed to implementing this round of PPP quickly to continue supporting American small businesses and their workers.”

Treasury Secretary Steven T. Mnuchin 

Key PPP updates

• PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business 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, destination 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. 

When is a borrower generally eligible for a Second Draw PPP Loan?

• When the borrower reviously received a First Draw PPP Loan and will or has used the full amount only for authorized uses
• When the borrower has no more than 300 employees
• When the borrower can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020

Additional guidance links

• PPP Guidance from SBA Administrator Carranza on Accessing Capital for Minority, Underserved, Veteran, and Women-owned Business Concerns;
• Interim Final Rule on Paycheck Protection Program as Amended by Economic Aid Act
• Interim Final Rule on Second Draw PPP Loans.
• PDF — PPP borrower application. (See participating bank or other financial institution.)

For more information visit sba.gov/ppp or treasury.gov/cares. 

This resource was prepared and distributed by the US SBA with assistance of the U.S. Department of Treasury. Always seek the guidance of a trusted financial advisor when borrowing money or making financial decisions related to your business.

Credit: stockstudioX via GettyImages

(Breaking story. Most recent version: Friday, December 12, 2020, 4:00 p.m., Eastern. For earlier coverage, see below.)

The Senate on Friday approved a one-week stopgap bill to fund the government, buying additional time for negotiators to reach an agreement on both a catchall government spending package and a coronavirus aid plan to address the economic toll of the pandemic. (President Trump has to sign the bill or funding runs out at midnight, and the government would shut down.)

Democratic leaders have said the starting point for talks should be a $908 billion bipartisan compromise being drafted by a group of moderates.

It would include $288 billion for the Paycheck Protection Program that extends loans to small businesses, and $300-a-week supplemental federal jobless payments until the spring. The proposal, for now, does not include direct payments from stimulus checks.

(Breaking story. Most recent version: Friday, December 11, 2020)

The $900-billion COVID-19 relief package from a bipartisan group of lawmakers has all but collapsed after Senate Majority Leader Mitch McConnell said GOP senators wi.. not support $160 billion in state and local funds as part of a potential tradeoff in the deal.

The proposal provides sweeping new funds for small businesses (via a renewed PPP loan program), healthcare providers, schools, and families suffering from the coronavirus crisis and the economic shutdowns.

According to the Associated Press, McConnell’s staff says the Senator sees no path to agreement on a key aspect of the existing proposal:

“A slimmed-down version of the liability shield that he wants for companies and organizations facing potential COVID-19 lawsuits in exchange for the state and local funds that Democrats want.“

Government Shutdown

The COVID-19 relief plan now threatens another pressing business: a must-pass government funding bill. If it doesn’t clear Congress, the lack of government funding would trigger a federal government shutdown Saturday. (The Senate approved a one-week delay.)

Mixed Messages

Trump’s top negotiator on COVID-19 financial aid, Treasury Secretary Steven T. Mnuchin, reported progress on Thursday before the package from the bipartisan senators group fell apart. “I think we’re making a lot of progress,” Mnuchin said.

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