SBA Updates COVID Programs
By Brent E. Donnelly, District Director – Montana U.S. Small Business Administration
Information on the COVID programs through SBA continues to be updated.. Monitor the SBA website at www.sba.gov.
l Economic Injury Disaster Loan (EIDL) – The application portal remains open for EIDL. Businesses may apply for loans through December 31, 2021.
l Updated FAQ’s are on the SBA website- Frequently Asked Questions: COVID-19 Economic Injury Disaster Loan (EIDL) (sba.gov)
l EIDL main web page (includes information on the EIDL Targeted Advance): COVID-19 Economic Injury Disaster Loans
l Shuttered Venues Operators Grant (SVOG) – FAQs were updated for more clarity and posted on the SBA website on Friday. Shuttered Venue Operators Grants: Frequently Asked Questions Feb. 5, 2021 (sba.gov) Organizations considering applying for SVOG should review the updates. I am including a few (be sure to see the link for all) items of note below which we’ve received some questions: (note: these are “copy/paste” from the FAQ’s)
l Is an entity that applied for and received a Paycheck Protection Program loan in July 2020 eligible to apply for an SVOG? Yes, if an entity applied and was approved for a PPP loan prior to Dec. 27, 2020, it is eligible to apply for an SVOG.
l Is an entity that applied for a First Draw or Second Draw PPP loan on or after Dec. 27, 2020, eligible to apply for an SVOG? No. Both examples would not be eligible to apply for an SVOG unless and until the PPP loan application (whether First Draw or Second Draw) is declined.
l Can an entity apply for a PPP loan now and decide later on the loan if it did not receive an SVOG? At what stage is a PPP loan considered “received”? No. Per the Economic Aid Act, as well as how the PPP loan system operates, entities cannot apply for a PPP loan and SVOG at the same time. Entities must make an informed business decision as to which program will most benefit them and apply accordingly. If an applicant is rejected by one program, it will then be eligible to apply for the other.
l What can an entity do to get ready to apply? As the SBA works on building the application platform, it would be in your best interest to register for a DUNS number so you can then register in the System for Award Management (SAM.gov). Also, gather documents that demonstrate your number of employees and monthly revenues so you can calculate the average number of qualifying employees you had over the prior 12 months. Lastly, determine the extent of gross earned revenue loss you experienced between 2019 and 2020. This and additional information such as floor plans, contract copies and other evidence will be needed to apply for an SVOG.
l Must applicants register in the System for Award Management (SAM.gov) or can they use other identifiers like ITINs or EINs to apply for an SVOG? SVOG applicants need to register with the federal government’s SAM at www.SAM.gov to apply and cannot use an Individual Taxpayer Identification Number, Employer Identification Number, or other means of identification or registration. Interested parties are encouraged to obtain a Dun and Bradstreet (DUNS) number (a prerequisite for SAM registration) as soon as possible. With a DUNS number, interested parties then should immediately begin registering in SAM.gov, as the SAM registration may take up to two weeks once submitted.
l When will SVOG applications open? The SBA is working expeditiously to open SVOG applications and encourages you to stay up to date by frequently visiting www.sba.gov/coronavirusrelief for information.
l SVOG website: Shuttered Venue Operators Grant (sba.gov)