Dear Friend,
As we begin a new year, citizens, workers, and small businesses in Ohio still need relief from the ongoing COVID-19 pandemic. Below are important updates on relief efforts:
OPEN: PAYCHECK PROTECTION PROGRAM
Great news: The U.S. Small Business Administration (SBA), in consultation with the U.S. Treasury Department, has opened the Paycheck Protection Program loan portal. The opening of the SBA loan system is designed to efficiently and effectively implement the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act and to ensure increased access to the PPP for minority-, underserved-, veteran- and women-owned small business concerns.
The portal is currently accepting First and Second Draw PPP loan applications from participating Community Financial Institutions (CFIs), which include Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), Certified Development Companies (CDCs) and Microloan Intermediaries. More from the SBA, including necessary forms, can be found HERE.
- Eligible applicants for First Draw Loans that did not receive a PPP loan prior to August 8, 2020, but now have the ability to apply for a PPP First Draw Loan on or before March 31, 2021. First Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations
- A Second Draw PPP loan is for certain eligible borrowers that previously received a PPP loan, generally have 300 employees or less, and have suffered a 25% reduction in gross receipts. At least $15 billion is set aside for additional PPP lending by CFIs. Eligible borrowers that previously received a PPP First Draw Loan may apply for a PPP Second Draw Loan of up to $2 million with the same general loan terms as their PPP First Draw Loans
Borrowers can apply for a First Draw PPP Loan until March 31, 2021, through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, eligible non-bank lender, or Farm Credit System institution that is participating in PPP. All new First Draw PPP Loans will have the same terms regardless of lender or borrower. A list of participating lenders as well as additional information and full terms can be found HERE.
SBA also is calling upon its lending partners to redouble their efforts to assist eligible borrowers in underserved and disadvantaged communities. Additionally, SBA plans to dedicate specific times to process and assist the smallest PPP lenders with loan applications from eligible small businesses.
ECONOMIC IMPACT PAYMENTS
In January, the IRS sent a second round of Economic Impact Payments via direct deposit, paper checks, and EIP debit cards. The payment amounts are $600 per adult and $600 for eligible dependents. Americans should see direct deposit payments in their accounts already. Paper checks and debit cards should be delivered over the course of the next couple weeks.
Due to an IRS error, however, millions of direct deposit payments were sent to temporary or closed bank accounts used by third-party tax preparation companies to process tax refunds for certain taxpayers. The IRS initially indicated that people in this situation would have to wait to file their taxes to get their payments. But now a solution is being implemented to get payments to the majority of impacted Americans much quicker. Taxpayers do not need to take any additional action at this time and should continue to monitor their accounts for deposits. More details from the IRS can be found here.
These payments are an expansion of the Economic Impact Payments the IRS issued earlier in 2020 as part of the CARES Act. If the IRS has your direct deposit information, you will receive a payment that way. If it does not, you will receive your payment as a check or debit card in the mail. If you are eligible but don’t receive your check for any reason, you can claim the payment when you file your 2020 taxes in the spring of 2021.
Thank you for reading this update. For more timely updates, please make sure you are following me on Facebook, Twitter, and Instagram. As always, feel free to be in touch with any questions or comments you may have. I hope you had a blessed holiday season, and I wish you peace and joy in 2021.
Sincerely,
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Congressman Bob Latta
Member of Congress