Restaurant Funding Updates: Emergency Loan Assistance

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The Paycheck Protection Program (PPP) application deadline was extended under the PPP Extension Act of 2021 (H.R. 1799) through May 31st, 2021.  The application window was set to expire March 31st, 2021.  Businesses now have an additional 60 days to decide if a PPP loan is necessary, gather the necessary documents and apply.

The SBA announced that recipients of a COVID-19 Economic Injury Disaster Loan (EIDL) won’t have to start making payments on the loan until 2022.

  • For EIDL loans made in 2020, the first payment is due 24 months from the date the note was received, extended from 12 months.
  • For EIDL loans made in 2021, the first payment is due 18 months from the date the note was received, extended from 12 months.

The SBA has also increased the maximum amount that small businesses can borrow under the COVID-19 EIDL program.  Beginning the week of April 6th, 2021, the loan limit for COVID-19 EIDL loans will be increased to 24 months of economic injury with a maximum loan amount of $500,000.  The prior maximum loan amount was six months of economic injury with a maximum loan amount of $150,000.

The SBA is set to begin accepting applications April 8th, 2021 for the Shuttered Venue Operators Grant (SVOG) program.

The American Rescue Plan Act (P.L 117-2) amended the SVOG program so entities that apply for a Paycheck Protection Program (PPP) loan after December 27th, 2020, can also apply for an SVOG.  The eligible entity’s SVOG will be reduced by the PPP loan amount.  Venue operators and other eligible SVOG applicants do not have to subtract out any PPP funding received before December 27th, 2020.

An SVOG applicant must register at SAM.gov for the federal government’s System for Award Management (SAM) in order to receive an SVOG. Applicants must first obtain a Dun & Bradstreet (DUNS) number, which is required to register in the SAM system.

The SBA has created some great resources for the SVOG to help you get prepared that can be found here. The website contains FAQs, eligibility requirements, a preliminary application checklist, how the SVOG interacts with other grant programs (EIDL/PPP), and a priority list of applicants for the first 28 days the SBA is accepting applications.  There is also a link to the SVOG Portal, on that portal you can sign up to be notified when the application process opens.

The SBA is targeting early April to launch a phased rollout of the $28.6 billion Restaurant Revitalization Fund (RRF) created by the American Rescue Plan Act (P.L 117-2).  In the first phase of accepting applications, the SBA will restrict eligibility to the smallest applicants ($500,000 or less in 2019 gross receipts) with the first 21 days being restricted to restaurants owned and operated or controlled by women, veterans, or socially and economically disadvantaged individuals.  After the restricted first phase, grants would become available more broadly.

The SBA indicated on March 30, 2021, that Restaurant owners who seek to participate in the Restaurant Revitalization Fund will not need to sign up for a SAM.gov account and will not be required to have a DUNS number. Here is a link to the tweet from the SBA.

This information can be found on the SBAs’ website for COVID-19 relief options that can be found here.