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Dear Downtown Businesses:
We have heard from many of you that funding is what you need right now. Good news! Both California and the federal government have passed legislation that includes grants and forgivable loans.
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California Small Business COVID-19 Relief Grant Program
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The State of California has launched a new grant program for small businesses that offers $5k, $15k or $25k grants based on annual revenue. Here is what we know so far:
Who Can Apply?
- Eligible small businesses and small non-profits as defined here
- Must be currently open or have a clear plan to re-open once restrictions loosen
How Can I Apply?
- Applications are accepted 12/30/20 through 1/8/21 here
How Can I Learn More?
- There is a webinar planned for Wednesday, Dec 30 at 1 p.m. hosted by the Small Business Majority, California Go Biz and Lendistry. Register here.
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Federal Stimulus Package Signed
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The second federal stimulus package has been signed by the President which includes Payroll Protection Program (PPP) forgivable loans. Here is what we know so far:
Who Can Apply?
- Businesses, some nonprofit organizations, self-employed and independent contractors
- Existing PPP borrowers are eligible for a second loan if they have fewer than 300 employees and can demonstrate a 25% reduction in gross revenue during a quarter from 2020 compared with the same quarter in 2019
- First time PPP borrowers are subject to the original eligibility rules
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How Much Can I Borrow?
- Loan amounts are based on payroll with a maximum of $2 million
- Eligibility for amount is equal to 2.5 times average monthly payroll and for food service industry businesses is equal to 3.5 times average monthly payroll
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What are the forgiveness requirements?
- At least 60% must be spent on payroll to get full forgiveness with the other 40% on eligible costs including mortgage, rent, utilities, and PPE.
- For loans under $150,000 there is a simplified forgiveness process
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How Can I Apply?
- Loans are issued by financial institutions so check with your bank or lender to see if they are participating
- The program has not yet started and its opening date will be determined by the SBA. SBA is required to establish regulations in no later than 10 days. Check back here for details. as they become available.
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Is there other funding available from this stimulus package?
- $15 billion fund established to make grants to live venue operations such as theater and live performing arts organizations
- $20 billion for advance grants for applicants to the SBA's economic-injury disaster loan program
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