Be a Small Business Vaccine Leader: Join Us 4/6/21

On Tuesday, April 6th at 2:00 PM EDT, Reimagine Main Street will host a launch event regarding the important role small business owners can play in promoting vaccine access, confidence, and equity. As part of the event, we will:

  1. Release results of a survey fielded in conjunction with the U.S. Black Chambers Inc.U.S. Hispanic Chamber of Commerce, and the National Asian/Pacific Islander American Chamber of Commerce and Entrepreneurship;
  2. Hear from several diverse small business owners who are working on this issue;
  3. Launch an education and outreach effort (including tools and tips sheets for Asian American and Pacific Islander, Black, Latin(x), and Native small employers) to encourage more small business leaders to promote vaccinations for their workers and communities; and,
  4. Announce the commitment of hundreds of small business leaders who are taking action in their communities.

Register for the Event

We are asking you and all small business owners across the country to pledge your leadership in this area with both your business and community.

By taking the pledge, you are committing to championing the vaccine with your employees and in your community through at least one action that can include getting the vaccine when it is your turn, creating a vaccine plan for you and your employees, or assisting with vaccine promotion and distribution in your community.

Learn More About The Pledge

Small businesses fully reopening is critical to putting our economy on the path to recovery. We hope you will take the pledge and join us on April 6.

Restaurant Revitalization Fund FAQs

***Application for eligibility is now closed. 5/24/21.

 

UPDATE (5/21): Final Call!

SBA announced that businesses have until Monday, May 24, 8 p.m. ET, to submit applications to the Restaurant Revitalization Fund

  1. The SBA still has potential set-aside funding available for eligible establishments with 2019 annual revenue of not more than $50,000
  2. Eligible establishments that meet this revenue standard of not more than $50,000 are encouraged to apply through SBA-recognized point-of-sale vendors or directly via the SBA online application portal

 

 

UPDATE: The SBA announced that the Restaurant Revitalization Fund will be open on May 3rd! You can apply through the online SBA portal, Participating POS provider ( Square, Toasts, Clover, NCR Corporation (Aloha).
Registration for the SBA application portal will begin on Friday, April 20, 2021 at 9am ET. You can create an account by clicking here.
Review the RRF program fund guidecross-program eligibility requirements, and a sample of the application you will have to fill out.

 

If you would like to receive updates about the Restaurant Revitalization Fund, please fill out this form.  

 

What is the Restaurant Revitalization Fund?
  • The Restaurant Revitalization Fund (RRF) provides direct grant support for restaurants hit hardest by the pandemic. The grant amounts are up to $10M per restaurant group or $5M per individual restaurant.
  • The Small Business Administration (SBA) is administering a total of $28.6 billion in RRF dollars to date.

 

When will applications be opened?
  • Applications are currently not live – the SBA is still developing the application along with program guidance.
  • In the meantime, there are specific steps a restaurant can take to prepare for when the application opens
  • Small business owners can follow this link to sign up to receive updates about the RRF & when Technical Assistance will begin.
  • Follow the link for FAQs from the National Restaurant Association.

 

What if I already received PPP financing?
  • The program assumes that many RRF applicants will have already received a PPP loan
  • If you are a PPP recipient and are approved for a RRF, you will need to subtract your PPP amount in your RRF grant calculation.

 

Who is eligible for the RRF?
  • All food service or drinking establishments, including:
    • Restaurants
    • Food stands, food trucks, food cars
    • Caters
    • bars, saloons, lounges, taverns
    • Snack and nonalcoholic beverage bars
    • Bakeries (onsite sales to the public comprise at least 33% of gross receipts)
    • Brewpubs, tasting rooms, taprooms (onsite sales to the public comprise at least 33% of gross receipts)
    • Breweries and/or microbreweries (onsite sales to the public comprise at least 33% of gross receipts)
    • Wineries and distilleries(onsite sales to the public comprise at least 33% of gross receipts)
    • Inns (onsite sales to the public comprise at least 33% of gross receipts)
    • Licensed facilities or premises of beverage alcohol producers where the public may taste, sample, or purchase products
    • Tasting rooms

 

What is the time period for expenses?
  • Incurred eligible expenses between 2/15/20 and 12/31/21

 

You are not eligible if:
  • you are part of an affiliated group with more than 20 locations, regardless of whether those locations do business under the same or multiple names
  • you are publicly traded
  • you have a pending application under the Save Our Stages program
  • you are a business operated by state or local government

 

Do certain applicants get priority?
  • The first 21 days of this grant program will prioritize veteran-, women-,socially and economically disadvantaged -owned businesses
  • $5 billion is set aside for applicants with 2019 gross receipts of not more than $500,000
  • An additional $4 billion is set aside for applicants with 2019 gross receipts from %500,001 to $1,500,000
  • An additional $500 million is set aside for applicants with 2019 gross receipts of not more than $50,000

 

How do I calculate my RRF amount? 
There are varying calculations depended on when your restaurant opened
  • For restaurants that opened pre-2019:
    • Take your 2019 gross revenue minus 2020 gross revenue, and subtract the total amount of the PPP loans (First and/or Second Draws) you received
  • For restaurants that opened in 2019:
    • Calculate the average of your 2019 monthly gross revenues, and multiply that average by 12
    • Then subtract your 2020 revenues from that total, and then subtract the total amount of your PPP loans
  • For restaurants that opened in 2020 or after:
    • Amount spent on eligible expenses between 2/15/2020 and 3/11/2021 minus  PPP loan amounts
  • For those entities who began operations partially through 2019, you may elect (at your own discretion) to use either calculation 2 or calculation 3

 

** All of these calculations are open to further clarification by the SBA. Businesses should keep up-to-date as the SBA releases guidance to ensure their grant calculation is correct

 

What expenses are eligible?
  • Business payroll costs (including sick leave)
  • Payments on any business mortgage obligation
  • Business rent payments (note: this does not include prepayment of rent)
  • Business debt service (both principal and interest;( note: this does not include any prepayment of principal or interest)
  • Business utility payments
  • Business maintenance expenses
  • Construction of outdoor seating
  • Business supplies (including protective equipment and cleaning materials)
  • Business food and beverage expenses (including raw materials)
  • Covered supplier costs
  • Business operating expenses

 

What is the covered period for these expenses?
  • Grants can be spent on eligible expenses from 2/15/20 through 12/31/21.

 

Do I have to agree to anything?
  • Recipients must certify that current conditions make the grant request necessary; that the funds will be used to retain workers, maintain payroll, and cover other eligible expenses; and that the recipient is only applying for and would only receive one grant
What if I can’t use my full fund on eligible expenses?
  • It must be returned to the government

 

Link to a sample application – here
Link to Restaurant Revitalization Fund Program Guide (created by SBA) – here
For more recent updates and to monitor visit sba.gov for the most recent updates.

Guidance on Grant Funds & Taxes

As a recipient of Cook County COVID-19 Recovery Grant Recipient/Coronavirus Relief Funds (CRF) through the county, you should have received a 1099-MISC Form from the WBDC. If you have not received your form please email COVID19Help@wbdc.org. Please include the name of your business, the business owner’s name, and the programs you participated in.

State and local grants are ordinarily taxable for federal income purposes, and federal grants are taxable unless stated otherwise in the legislation authorizing the grant.

A business’ receipt of CRF awards generally is not excluded from gross income and therefore taxable. As such, it appears the prime recipient has a reporting obligation if the amount is above $600 and paid to a noncorporation, such as a small business, nonprofit organization, and city or county government agency.

For further inquiry on this topic, please visit the IRS’ CARES Act frequently asked questions page.

 We recommend that all small businesses consult with a CPA/accountant or check out the IRS website for in depth questions about how this impacts their taxes.

PPP Updates: Feb 22, 2021

Delivering equitable relief to hard-hit small businesses is a top priority. On February 22, some critical reform was announced to build on the success of PPP. These changes are designed to improve equity and access to the smallest business owners, minority-owned businesses, and those located in underserved areas across America.

Employers with less than 20 employees are advised to take advantage of a 14 day exclusive application period starting Wednesday, February 24, 2021.

Small business have been the most vulnerable and severely impacted by the detrimental effects of Covid-19, causing a significant push for the improvement of PPP funding:

  • A 60% increase in funding for businesses with up to 10 employees 
  • Funding going to rural small business is up nearly 30%
  • Minority Depository Institutions and Community Development Financial Institutions share funding that is up more than 40%

The new changes focus the PPP loan formula on gross income which increases the eligibility and loan amount for smaller businesses, whereas, the size of the loan was previously based on annual profit that these companies reported on their taxes.

Since lending resumed last month, $134 billion has been disbursed to 1.8 billion businesses.

Additional Changes Include:

  • Revised loan calculation for sole proprietors, independent contractors, and self-employed individuals to receive more financial support.
  • Elimination of exclusionary restrictions preventing applicants with prior non-fraud felony convictions from accessing funds.
  • Elimination of exclusionary restrictions preventing applicants who are delinquent on their federal student loans from accessing funds.
  • 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.

The Time is Now! Only employers with less than 20 employees can apply for PPP for the next 14 days.  We recognize that 98% of businesses have less than 20 employees and are at the forefront of our communities and families.  Help is here.  Prioritize your business – Apply Now.

Small Business Owners: PPP Eligibility

In 2020 small businesses around the world were stunned by the economic impact of COVID-19. The paycheck protection program (PPP) was created to offer financial relief to small businesses owners, specifically to cover monthly payroll costs, rent, interest and utilities.

During the initial release of the loan “Main Street” struggled gaining access. With the most recent round of PPP, things are different. Companies with less than 500 employees are the focus. This time we’re turning the page to ensure that main street will survive.

PPP is a loan program which requires paperwork and thus seems complicated. Fortunately there are resources available to support small business owners through this process. Cook County COVID 19 Recovery Small Business Assistance is here. Across the county small business owners are encouraged to partner with Business Support Groups to learn more, access capital and thrive.

Most recently a PPP education seminar was held to share knowledge. Here are some of the main takeaways from that event.

Eligibility criteria for First Round of PPP (have not received the loan):
– In operation on February 15, 2020
– Have no more than 500 employees combined with affiliates (unless NAICS 72, 511110 or 5151 then 500 per location)

Eligibility criteria for Second Round of PPP:
– In operation on February 15, 2020
– Have no more than 500 employees combined with affiliates (unless NAICS 72, 511110 or 5151 then 500 per location)
– Funds from first round of PPP have been used completely
– Demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020, Gross receipts for 2019 may be submitted
– Have no more than 300 employees combined with affiliates, (unless NAICS 72, 511110 or 5151 then 500 per location)

Calculating the Loan Amount:

First draw applicants are eligible for 2.5 times the average monthly payroll, up to $10 million.
Second draw applicants are eligible for 2.5 times payroll up to $2 Million.
For businesses in the Accommodations & Services industries (NAICS codes 72) eligibility is 3.5 times the average monthly payroll, up to $2 million.

Loan forgiveness is an added benefit of the PPP loan but proved to be confusing for many small businesses owners in the first round. Fortunately, the criteria is clearer this round. Loan forgiveness varied based on use of the funds.

Eligible business expenses include:
– All payroll costs
– Rent & lease agreements
– Mortgage interest
– Utility payments

Criteria for Loan Forgiveness include:
– Employee and compensation levels are maintained
– A minimum of 60% must have been used on payroll costs*
– Funds must have been used in the 8 – 24 weeks from receiving the loan.

If the loan is not forgiven, the payment terms are 1% over 5 years.

*Payroll costs include expenses that are essential to payroll processes including operational expenses, protective equipment, property damage expenses, supplier expenditures.

Click here for a list of documents you’ll need to apply for the PPP. For one on one assistance in applying for the PPP sign-up here.

What You Need to Apply for PPP, Forms & Documents

Small businesses are often passion projects that started to turn a profit. There are endless tales of small businesses owners who can’t manage the books. If this resonates with you, you aren’t alone. During the first round of PPP many small business owners found themselves ineligible or unwilling because of the paperwork. You run a small business because you love your customers and the work you do. What we learned, maybe the hard way, is that we need to have our business records in order just in case of a global pandemic.

To be prepared to apply for the PPP loan this time, here is what you need:

– Photo IDs for all owners with 20% or more ownership of the business
– 2019 and 2020 Profit & Loss statements, showing revenue loss in 2020
– 2019 business tax returns
– If your business is a partnership you need to include the IRS Form 1065 and Schedule K-1
– Sole proprietors must include 1040 Schedule C
– Business Organizational Documents (ie articles of incorporation, by laws)
– Payroll Reports to include list of gross wages, paid time off and taxes assessed for all employees for all 12 months of 2020
– All 4 quarters of 2020 Employer IRS Documents
– Form 941, Employer’s Quarterly Federal Tax Return
– Form 944, Employer’s Annual Federal Tax Return
– Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return
– Form W-3, Transmittal of Wage and Tax Statements
– Statements showing Health Insurance and Retirement expenses

If these are simply a print out away, good job. For those of us who have to go searching, don’t beat yourself up about it. We’re in this together. Help is here!


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