SBA FUNDING UPDATE

[Lee B]

"Small Business Administration funding for the Paycheck Protection Program has been exhausted; however, $6.2 billion remains available for underserved areas. Applications that are already in the pipeline will likely be approved and funded. The state tax treatment for PPP loans and forgiveness varies from state to state, and there continue to be changes.

The Restaurant Revitalization Fund is for more than just restaurants, Mankowski noted. “It includes caterers, bars, wineries, and other entities in the food industry. There have been over 300,000 applications. $2.7 billion has been distributed, with monies set aside for women, minorities, veterans and others.”

The Shuttered Venue Operators Grant program had 11,600 applications by the beginning of May. Eligible applicants may qualify for grants equal to 45% of their gross earned revenue, with the maximum amount available for a single grant of $10 million. $2 billion is reserved for eligible applications with up to 50 full-time employees.

Economic Injury Disaster Loans are, in fact, loans and therefore are not forgivable, Mankowski noted. “They are not to be confused with the EIDL Grants (of $1,000 per employee), which are forgivable," he said. "Loans have been increased to $500,000 per entity. If you previously applied for a loan, you can also apply for increases.”

The SBA has been using Form 4506-T, which allows a lender (in this case, the SBA) to verify with the IRS that the forms supplied to prove the applicant’s income match those in the possession of the IRS. “