PPP Clarification and Other Updates

Recently I received some misinformation regarding the status of the Payroll Protection Plan (PPP) funding, round 2 and I wanted to take this opportunity to provide some updated and factual information. I also wanted to clarify the Rebound Idaho grants and clear up any confusion on accessibility to EIDL advances. Lastly, we want and try to collect some data on the amount of funds potentially accessed by our Idaho Nonprofits to help us with our advocacy efforts.

Rebound Idaho $10,000 Grants:

• Last week we sent this information out about the $300 million in Rebound Idaho grants for small businesses and nonprofits. I heard conflicting information about the availability of funds in round one that opened Monday, May 11 for organizations with 1-19 employees, and what would be available during round 2 starting May 18 for organizations with 1-50 employees. Round 2 clearly states “subject to available funding.”
  

The bottom line is this:

• If you are an organization with 19 or fewer employees and you either received less than $10,000 in Payroll Protection Plan funds, or none at all, you should not delay in applying for those funds. Click here and start the secure TAP (taxpayer access point) account to begin the application process. For more information on eligibility and timelines, click here.

Payroll Protection Plan (PPP) Funds: Just this morning I received several alerts and misinformation about the PPP funding available. Here’s my attempt to sort out fact vs fiction:

• Fact: There’s still around $119 billion left in the second round of PPP funds. There is STILL time to apply, contact your lender today! 
  
  
• Fiction:  We will have to pay for an audit if we receive PPP funds to prove that they should be forgiven. This is a rampant rumor that has caused many nonprofits to give their funds back. If you are so inclined to give them back, contact your lender immediately. Refer to page 16 question 46 of this document regarding good faith.  f your loan is under $2 million you are “deemed to have made the required certification concerning the necessity of the loan request in good faith.”
  
  
• Fact: You have until May 18 to repay your PPP loan in full, guidance issued yesterday extended that deadline from today May 14 to Monday May 18.  Refer to question 47 pages 16-17 of this document. Check out this loan forgiveness estimator from ADP to help you identify if any of the loan may not be forgiven.
  
  
• Fact: You have 8 weeks from the time the funds were transferred into your account to ensure your loan becomes a grant.  You must expend all funds within 8 weeks from the time of receipt.  Make sure you know what that date was and when it expires. Use this handy checklist from ADP to ensure you’re compliant. In fact, on the ADP site there are other great resources such as loan forgiveness scenarios and FAQs that are worth taking a look at if you’re feeling unsure.

Additional Thoughts:

• We also found this great resource from Forbes that provides additional insights into many questions we have had. The best advice from Forbes for those of us receiving PPP loans is to contact our lender now to determine what kind of documentation your lender will want to see so you are prepared. 
  
  
• Our advice is to start preparing now, don’t wait. Find out what your lender will require and work to have your documentation in order when it’s time to apply for loan forgiveness.
  

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SBA Guidance:

• Please be sure to read the most recent SBA issued guidance for borrowers and lenders for additional and factual information. The SBA provides updated information on their website as it becomes available. We know that this is a rapidly evolving situation from a regulatory standpoint and things change from time to time, but we strongly encourage you to review the SBA website or contact SBA representatives to clear up any questions you might have. The overall structure of this program and the requirements are pretty straightforward and not likely to change.
  

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EIDL Advance:

• Recently more funding was allocated towards the EIDL advance program and initially, no new applications were accepted as there was a backlog to process. The SBA has opened the window for new applications from AGRICULTURAL related entities only. Until all those applications are processed we won’t know if/when new business applications will be accepted.  
  

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FLASH POLL:

• We would like to get a better sense of how many nonprofits have applied for and/or received funding from the PPP, EIDL or Rebound Idaho grants. Please take 3 minutes or less to complete this VERY brief flash poll. Your responses will help us with our advocacy efforts!
  

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PPE Available for Small Businesses

• Small businesses can access 30-day supply of PPE as state opens for Stage 2 of Idaho Rebounds plan Saturday
  
  
• Governor Brad Little announced today that small businesses have a new resource to access masks, gloves, and sanitizer as the state enters Stage 2 of the four-stage Idaho Rebounds plan to safely and responsibly open Idaho’s economy.
  
  
• Idaho small businesses can obtain a 30-day supply of personal protective equipment (PPE) for their employees and patrons at supplies.idaho.gov.
  
  

“Health and the economy are not mutually exclusive – they are interconnected,” Governor Little said. “It’s been a challenge for small businesses to acquire PPE in quantities appropriate for their size. We don’t want the lack of access to PPE to inhibit small businesses from opening, and this new resource is an interim bridge to help them get back to work safely and build consumer confidence while the supply chain normalizes.”

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Idaho Cash Grant Program Webinar

• May 15 @ 10:00 am MT
• Webinar
• The Small Business Development Center is hosting a webinar to learn the details of the Idaho Cash Grant program. Idaho businesses can receive $10,000 grants as part of Governor Little's COVID-19 relief effort for Small Businesses in Idaho. We'll also explore the plan Idaho businesses will need to follow in order to reopen successfully during Phase I and Phase II of Governor Little's Rebound Idaho plan.

Guest Speakers:

• Alex Adams: Administrator for Governor Little's Department of Financial Management
  
• Sara Stover: Senior Policy Advisor to Governor Little
  

Register Here