The Town is anxiously awaiting federal dollars through the Community Development Block Grant (CDBG) Program. We hope to and are planning on assisting our local businesses with these funds as soon as they become available. In anticipation of this, we ask that all our local businesses take part in this survey to help us determine needs and efficiently distribute funds. Additionally, the Town has applied to the Attorney General’s Office for a $50,000 grant to help local business affected by COVID-19. If received, these grant funds will be distributed in the same way as the CDBG funds. We are doing all we can to ensure Webster businesses get the assistance they need.
The U.S. Chamber of Commerce is offering a grant initiative starting 4/20/2020. Please follow the link for more information and the application https://savesmallbusiness.com/
Please see below for all of the SBA programs currently available. The Governor’s $10 million loan program to assist Massachusetts’ businesses has exceeded capacity and is no longer accepting applications.
The U.S. Small Business Administration (SBA) will accept applications for the second round of funding of the Paycheck Protection Program (PPP) from lenders beginning Monday, April 27th at 10:30 am. It is critically important that small businesses impacted by the COVID-19 pandemic work with their lender to apply for the Paycheck Protection Program as soon as possible.
Businesses can access the SBA’s Find A Lender tool at https://www.sba.gov/paycheckprotection/find. Additionally, using SBA data, the Executive Office of Housing and Economic Development has published this list (https://www.mass.gov/doc/ppp-eligible-lenders-and-first-round-participants-sba-data) of institutions that provided loans to Massachusetts companies in the first round of the Paycheck Protection Program. The list also includes all entities that appeared on the SBA’s approved lenders list, which was last updated on April 13, 2020.
Any small businesses in need of application translation services or other technical assistance should access Massachusetts Growth Capital Corporation’s online resources, including a list of technical assistance providers who can help businesses apply for PPP in languages other than English: https://empoweringsmallbusiness.org/resources/covid-19-small-business-resources
The Paycheck Protection Program (PPP) is a loan program designed to provide a direct incentive for small businesses to keep workers on the payroll. Loans are up to $10M, with a 0.5% interest rate and a 2-year maturity; there are no payments for the first six months.
- Who can apply? Businesses, non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors, with 500 or fewer employees.
- When can I apply? The Paycheck Protection Program will be available beginning on Friday, April 3rd. Applications must be submitted by June 30, 2020.
- How do I apply? You can apply for the Paycheck Protection Program through any existing SBA 7(a) lender or through any participating federally insured depository institution, federally insured credit union, or Farm Credit institution. Ask your local lender if it is participating in the program.
- What else should I know? The SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. The program will be available retroactive from February 15, 2020, so employers can rehire their recently laid-off employees through June 30, 2020.
- Read more here: https://www.sba.gov/funding-programs/loans/paycheck-protection-program-ppp#section-header-4
The Economic Injury Disaster Loan Advance is a Loan Advance of $10,000 that is available to applicants who have been approved for an Economic Injury Disaster Loan; it does not need to be repaid, so you can think of the Advance as a grant for business expenses.
- Who can apply? If you have applied or intend to apply to the Economic Injury Disaster Loan program, you can also apply for a Loan Advance.
- When can I apply? The Loan Advance is available now.
- How do I apply? Visit the SBA’s website to submit an application for the Economic Disaster Injury Loan and Loan Advance.
- What else should I know? Please note that you should submit an application at the above link, even if you’ve previously submitted an EIDL application prior to the Loan Advance being available.
- Read more here: https://www.sba.gov/page/disaster-loan-applications#section-header-0
The SBA is also offering Debt Relief to small businesses. Under this relief, the SBA will pay the principal and interest for six months beginning March 27th, 2020 for qualifying new and current holders of 7(a) loans.
- Who can apply? Businesses who already have a covered 7(a) SBA loan or receive a 7(a) SBA loan prior to September 27, 2020.
- When can I apply? This relief is applied for covered loans beginning with payments due after March 27, 2020.
- How do I apply? Reach out to your SBA lender to discuss how this debt relief applies to your SBA loan.
- What else should I know? This debt relief is available only to 7(a) loans and not to loans made under the Paycheck Protection Program, 504 loans, or microloans.
- Read more here: https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources#section-header-4
Don’t forget that you can still apply for two other Small Business Administration loan programs:
- Economic Injury Disaster Loans are available through the SBA website; apply here. EIDL loans can be up to $2M, with interest rates of 3.75%, and are for businesses whose revenues were adversely impacted by the coronavirus outbreak.
- The Express Bridge Loan Program is available to businesses that have an existing business relationship with an SBA-approved lender; speak to your lender about accessing this option while you await a decision on long-term financing.
We will continue to make you aware of new programs and resources as they come to fruition. Also, we encourage you to subscribe for email updates via www.SBA.gov/Updates for the latest news on available SBA resources and services. If you need additional assistance, you can find your local SBA office and resource partners at www.SBA.gov/LocalAssistance. If you have questions, you may also call 1-800-659-2955.
Cash Flow Relief for Small Local Business: The Governor announced new measures for administrative tax relief for small local businesses impacted by COVID-19, especially in the restaurant and hospitality sectors. For small businesses, defined as those who paid less than $150,000 in 2019 in sales and meals, or room occupancy taxes, we will be postponing the payment of their respective sales, meals, or room occupancy taxes.
1.Taxes due for March, April, and May will instead be due on June 20.
2.All penalties and interest that would otherwise apply will be waived.
Businesses may contact Doug Willardson, Town Administrator (firstname.lastname@example.org or cell: 508-341-6558) or Kevin J. Kuros, Regional Director – Central Mass Massachusetts Office of Business Development to discuss assistance options for small businesses. Kevin’s contact information is email@example.com or (617) 549-1803 cell.