The following is a summarized list of loan and grant programs available to help Utah residents and businesses through the COVID-19 pandemic. For a more comprehensive look into pandemic funding for businesses, please visit https://coronavirus.utah.gov/business/business-loans-and-grants/ Please see https://www.slco.org/covid-19/economy/ for a complete list of municipal, county, state and federal resources to support businesses during the COVID-19 emergency and recovery. Salt Lake County’s Business Relief Hotline is 385-468-4011.
Paycheck Protection Program (PPP) updates from the White House unveiled
Earlier this week on February 22nd, the White House unveiled reforms to the Paycheck Protection Program (PPP). These reforms aim to further target the PPP to the smallest businesses and those that have been left behind in previous relief efforts, and will:
- Institute a 14-day period, starting Wednesday (02/24), during which only businesses with fewer than 20 employees can apply for relief through the Program.
- Revise the loan calculation formula for these applicants so that it offers more relief, and establish a $1 billion set aside for businesses in this category without employees located in low- and moderate-income (LMI) areas.
- Eliminate an exclusionary restriction that prevents small business owners with prior non-fraud felony convictions from obtaining relief through the Paycheck Protection Program.
- Eliminate an exclusionary restriction that prevents small business owners who are delinquent on their federal student loans from obtaining relief through the Paycheck Protection Program.
- Ensure access for non-citizen small business owners who are lawful U.S. residents by clarifying that they may use Individual Taxpayer Identification Numbers (ITINs) to apply for relief.
For more information, see the full announcement from the White House.
En Espańol: “Biden impulsa ayudas a los negocios más pequeños o dirigidos por inmigrantes” https://es.finance.yahoo.com/noticias/biden-impulsa-ayudas-negocios-peque%C3%B1os-194905872.html
Emergency Rental Assistance Program
Expanded Employee Retention Credit
- The Paycheck Protection Program is a cornerstone of aid offered to provide small business loans on favorable terms to borrowers impacted by the current state of economic uncertainty. Specifically, the program is designed to help small businesses keep their workforce employed. The PPP will be reopened for a second round with a fresh $284 billion in available funding. “First Draw” borrowers can apply now and “Second Draw” borrowers can apply starting on Wednesday, January 13th. PPP 2.0 changes rules for existing PPP loans, for new PPP loans, and PPP second draws in terms of eligibility, allowable expenses, forgiveness, and more. The reopened program allows for:
- new PPP loan requests from eligible businesses that didn’t obtain a loan in the initial round: since this new PPP program is actually an amendment to the original, businesses that haven’t previously applied for PPP loans will be subject to the PPP program’s original eligibility rules. The original PPP was generally open to businesses with up to 500 employees, but unlike this second draw offer, there was no requirement to demonstrate a revenue loss.
- “Second Draw” for eligible businesses that currently have a PPP loan or have had one previously who need additional support: the updated program allows some businesses obtain another PPP loan, called a “PPP second draw.” PPP second draw loans are available to:
- Companies with fewer than 300 employees who have already used or will use the full amount of money granted to them in their initial round of PPP.
- Businesses, some nonprofit organizations, self-employed workers and independent contractors.
- Sole proprietors, independent contractors, and eligible self-employed individuals, and
- NEW: Certain housing cooperatives, news organizations, section 501(c)(6) organizations, and Economic Injury Disaster Loan (EIDL) recipients
- Show at least a 25% reduction in gross receipts in the first, second or third quarter of 2020 compared to the same quarter in 2019.
- PPP 2.0 will run through March 31st
Where To Get Help
Your Existing Bank
If you have an existing banking relationship, check with that bank to see if they are participating in the Paycheck Protection Program. If so, they can help you understand the program and get an application started as soon as possible.
Utah SBA Office
Business owners and nonprofit organizations should subscribe to the SBA Utah District Office newsletter and follow them on Twitter to receive the latest information on the new programs. The Utah SBA office will provide real-time updates and information. You may also contact the Utah District Office at (801) 524-3209 or by email at firstname.lastname@example.org.
Rapid Response Team
If you need assistance to understand and apply for a PPP or Disaster Loan, you can reach out to Utah’s COVID-19 Rapid Response Team. The team is trained to provide assistance to business owners, including sole proprietors and independent contractors, as they prepare for and navigate the new PPP application process. They can also provide referrals for professional services that can assist companies as they prepare their financials for a loan. Contact the Rapid Response Team by filling out this form in English or Spanish.
Utah Bankers Association
Applications for PPP support are available through corporate bankers. If you’re a nonprofit or small business and you don’t work with a company banker, you could reach out to your personal banker to see what assistance their bank can provide.
The Utah Bankers Association website provides resources and links to banks participating in the new PPP assistance program.