Monthly Archives: December 2020

Pandemic Relief Bill – 12/28/2020

The President signed the Pandemic Relief Bill on December 27, 2020. SBA and Treasury will issue guidance for lenders within 10 days. In the meantime, here are highlights of new small business emergency assistance:

      • PPP borrowers can apply for another PPP loan (if they have less than 300 employees, and have experienced a greater than 25% reduction in gross receipts during the first, second, third, or fourth quarter in 2020 relative to the same quarter in 2019. Loans may not exceed $2m)
      • PPP loan forgiveness is not taxable
      • Restaurants and hospitality businesses may be eligible for 3.5x monthly payroll
      • Additional categories of eligible expenses like PPE and weatherization
      • Live Venue Provision – grants up to $10M – for theatres, museums, music venues, etc
      • 501(c)(6) not-for-profit organizations will be eligible.  This includes Chambers of Commerce and Destination Marketing Organizations
      • EIDL grants will reopen
      • PPP loan forgiveness not reduced by EIDL grant amount
      • PPP loans under $150K- 1 page forgiveness application

What do you need to do?

  • Be prepared to apply when it becomes available
  • Figure out out your income by quarters vs. 2019
  • Contact potential lenders
  • If you don't have a business bank account get one
  • Keep a close eye out for application openings; deadlines
BREAKING: Governor orders nightly curfew to start Monday

PUBLISHED 

Governor Ralph Northam today announced new, targeted measures to slow the spread of COVID-19 as new cases and hospitalizations continue to rise in all areas of the Commonwealth. Executive Order Seventy-Two directs Virginians to stay at home between the hours of 12:00 a.m. and 5:00 a.m., implements a universal mask requirement, and lowers the limit on social gatherings from 25 people to 10 people. The order will take effect at 12:01 a.m. on Monday, December 14 and remain in place through January 31, 2021, unless rescinded or amended.

“New daily case numbers are higher than they have been at any previous point in the pandemic, and while the trends in Virginia are better than most of the country, we are taking action now to slow the spread of this virus before our hospitals get overwhelmed,” said Governor Northam. “We already have strong public health measures in place, and with these additional steps, we can turn this around. Virginians, if you don’t have to be out, stay at home. Whenever we are around other people, we all need to wear a mask, indoors and out.”

“These are common-sense things we can all do to take care of each other and stay safe. This is not about getting people in trouble—this is about everyone doing their part and reducing opportunities for people to get sick.”

The following mitigation measures will take effect at 12:01 a.m. on Monday, December 14:

  • Modified Stay at Home Order: All individuals in Virginia must remain at their place of residence between the hours of 12:00 a.m. and 5:00 a.m. Exceptions include obtaining food and goods, traveling to and from work, and seeking medical attention.
  • Universal mask requirement: All Virginians aged five and over are required to wear face coverings in indoor settings shared with others and when outdoors within six feet of another person. This order expands the current statewide mask mandate, which has been in place since May 29, and requires all individuals aged five and over to wear face coverings in indoor and outdoor public settings outside of their own household. These changes are consistent with new CDC guidelines, released December 4, which recommend universal wearing of face coverings.
  • Reduction in social gatherings: All social gatherings must be limited to 10 individuals, down from the current cap of 25 people. Social gatherings include, but are not limited to, parties, celebrations, or other social events, regardless of whether they occur indoors or outdoors. This does not apply to religious services, employment settings, or educational settings. Restaurants and retail stores are already governed by strict social distancing requirements, and are not included in this limit.
  • Continued limits on dining establishments: Virginia restaurants are currently governed by strict social distancing and sanitization requirements, which remain in place. The on-site sale, consumption, and possession of alcohol remains prohibited after 10:00 p.m. in any restaurant, dining establishment, food court, brewery, microbrewery, distillery, winery, or tasting room. All restaurants, dining establishments, food courts, breweries, microbreweries, distilleries, wineries, and tasting rooms must close by midnight.
  • Teleworking: Employees that can telework are strongly encouraged to do so.

While Virginia’s new cases per capita remain lower than 43 other states, all of the Commonwealth’s five health regions are experiencing increases in COVID-19 cases, positive tests, and hospitalizations. Virginia is currently averaging more than 3,700 new COVID-19 cases per day, up from a statewide peak of approximately 1,200 in May. Statewide test positivity rate is at 11 percent, an increase from 7 percent approximately one month ago. More than 2,000 Virginians are currently hospitalized due to COVID-19 statewide, an increase of over 80 percent in the last four weeks.

All individuals in Virginia should remain at their place of residence between the hours of

12:00 a.m. and 5:00 a.m. Individuals may leave their residences for the purposes of:

a. Obtaining food, beverages, goods, or services as permitted in this Order;
b. Seeking medical attention, essential social services, governmental services, assistance
from law enforcement, or emergency services;
c. Taking care of other individuals or animals;
d. Traveling required by court order or to facilitate child custody, visitation, or child care;
e. Engaging in exercise, provided individuals comply with social distancing requirements;
f. Traveling to and from one’s residence, place of worship, or work;
g. Traveling to and from an educational institution;
h. Volunteering with organizations that provide charitable or social services; or
i. Leaving one’s residence due to a reasonable fear for health or safety, at the direction of
law enforcement or at the direction of another government agency.

The full text of Executive Order Seventy-Two, which incorporates earlier Executive Orders Sixty-Three Sixty-Seven is available: Read Full Order Here

The Rebuild!VA Grant Program has awarded grants to 2,500 Virginia Businesses & Non-Profits

Virginia Allocates $100 Million Rebuild VA Economic Recovery Fund, Benefitting 2,500 Small Businesses and Nonprofits Impacted by COVID-19 Pandemic

Unprecedented times call for extraordinary measures. In the order to combat the COVID-19 economic downturn, the Northam Administration launched the $100 Million Rebuild!VA grant program for small businesses and non-profits. Governor Ralph Northam announced yesterday that the $100 million Rebuild VA economic recovery fund has awarded grants to 2,500 Virginia businesses and nonprofits.

Approximately $50 million was awarded to women, minority, and veteran-owned businesses. More than 45% of the funding was awarded to 997 small businesses and nonprofits located in low-income and economically disadvantaged communities, and businesses with less than $2 million in annual revenue received 91%  of the program’s funding. To date, Rebuild VA has received 15,700 applications and the average grant award was $35,636.

Rebuild VA, which is administered by the Department of Small Business and Supplier Diversity (SBSD), launched in August with an initial $70 million from the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act. In October, Governor Northam directed an additional $30 million in CARES Act dollars to expand the program.

All available funding for Rebuild VA has been fully committed.

“This funding reached every corner of Virginia, and we are hopeful Congress will work together this week so we can help more small businesses get back on their feet,” said Secretary of Commerce and Trade Brian Ball. “I commend the entire team at SBSD for its around-the-clock efforts to help get Rebuild VA funding deployed as quickly as possible to small businesses and nonprofits.”

For additional information on the Rebuild VA program and answers to frequently asked questions, please visit governor.virginia.gov/RebuildVA.

Read Full Announcement 

SBA Working Capital Loans Available in Virginia for Drought from June 1 Through Aug. 1

SBA Working Capital Loans Available in Virginia Following Secretary of Agriculture Disaster Declaration for June 1 Through Aug. 1 Drought

Released: December 7, 2020

ATLANTA - The U.S. Small Business Administration announced today that Economic Injury Disaster Loans are available to small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and private nonprofit organizations in Virginia due to a drought from June 1 through Aug. 1, 2020.

The loans are available in the following Virginia counties and independent cities: Amelia, Brunswick, Caroline, Chesterfield, Culpeper, Dinwiddie, Essex, Fauquier, Franklin City, Fredericksburg, Gloucester, Goochland, Greensville, Hanover, Henrico, Isle of Wight, King and Queen, King George, King William, Lancaster, Louisa, Middlesex, New Kent, Newport News, Nottoway, Orange, Petersburg, Prince George,
Prince William, Richmond, Southampton, Spotsylvania, Stafford, Suffolk, Surry, Sussex and Westmoreland.

“When the Secretary of Agriculture issues a disaster declaration to help farmers recover from damages and losses to crops, the Small Business Administration issues a declaration to eligible entities, affected by the same disaster,” said Michael Lampton, acting director of SBA’s Field Operations Center East.

Under this declaration, the SBA’s Economic Injury Disaster Loan program is available to eligible farm related and nonfarm-related entities that suffered financial losses as a direct result of this disaster.

This is a separate pool of funds from CARES Act EIDL.

Except for aquaculture enterprises, SBA cannot provide disaster loans to agricultural producers, farmers and ranchers. Nurseries are eligible to apply for economic injury disaster loans for losses caused by drought conditions.

The loan amount can be up to $2 million with interest rates of 3 percent for small businesses and 2.75 percent for private nonprofit organizations of all sizes, with terms up to 30 years. The SBA determines eligibility based on the size of the applicant, type of activity and its financial resources. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition. These working
capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. The loans are not intended to replace lost sales or profits.

Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure website at DisasterLoan.sba.gov and should apply under SBA declaration # 16801, not for the COVID-19 incident.

Disaster loan information and application forms may also be obtained by calling the SBA’s Customer Service Center at 800-659-2955 (800-877-8339 for the deaf and hard-of-hearing) or by sending an email to DisasterCustomerService@sba.gov. Loan applications can be downloaded from sba.gov/disaster. Completed applications should be mailed to: U.S. Small Business Administration, Processing and
Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.Submit completed loan applications to SBA no later than Aug. 2, 2021.

Read Press Release Dec. 7 21-156 VA 16801 Sec Ag Initial (Drought)

Economic Injury Disaster Loan (non-COVID0-19) Fact Sheet VA_16801 Sec Ag Fact Sheet

About the U.S. Small Business Administration
The U.S. Small Business Administration makes the American dream of business ownership a reality. As the
only go-to resource and voice for small businesses backed by the strength of the federal government, the
SBA empowers entrepreneurs and small business owners with the resources and support they need to
start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an
extensive network of SBA field offices and partnerships with public and private organizations. To learn
more, visit www.sba.gov.

Virginia SBDC