SBA Paycheck Protection Program - Relaunch

The CARES Act included a federal small business loan program called the Paycheck Protection Program (PPP). The program is designed to get cash in the hands of small businesses quickly, and incentivize business owners to keep employees on payroll by offering them loan forgiveness.

In January 2021, SBA relaunched the PPP with an additional $284 billion as part of the COVID-19 Economic Relief Package. Businesses can apply for either a first PPP loan, or a “second draw” loan. To be eligible for a new PPP loan, businesses must meet the SBA size standards for their industry, and demonstrate at least a 25% reduction in gross receipts in any quarter of 2020 relative to the same quarter in 2019. The SBA PPP Relaunch originally set a guarantee deadline of March 31, 2021.

On March 30, President Joe Biden signed the PPP Extension Act of 2021 into law, extending the Paycheck Protection Program an additional two months to May 31, 2021, and then providing an additional 30-day period for the SBA to process applications that are still pending.

Other changes impact eligibility for initial PPP loans, the loan forgiveness process, and the tax treatment of PPP loans.

SBA released a new set of guidance and regulations on January 6, including:

For more information and updates, visit SBA.gov/PPP or Treasury.gov/CARES

How to Apply

On January 8, the SBA & Treasury announced that PPP will re-open the week of January 11 for new borrowers and certain existing PPP borrowers. To promote access to capital, initially only community financial institutions will be able to make First Draw PPP Loans on January 11, and Second Draw PPP Loans on January 13. The PPP will open to all participating lenders shortly thereafter.

You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating.

Use the PPP Application Form to apply for a PPP loan with an eligible lender.

Loan Details & Forgiveness

The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities. The recent legislation added operations expenses, supplier costs, worker protection expenses, and covered property damage costs to the list of eligible expenses. At least 60% of the forgiven amount must have been used for payroll).

Click here to read more about PPP loan forgiveness.

Loan Forgiveness Reduction

If you also received an EIDL grant, your PPP loan forgiveness will no longer be reduced by the amount of the grant.

Loan Forgiveness Period

The period for which expenses count toward loan forgiveness will begin on the date of loan origination and end on a date of your choosing that is between 8 and 24 weeks after origination.

Simplified Application

If your loan was for less than $150,000, there will be a simplified one-page application process for loan forgiveness

Tax Treatment

The new law overturns the IRS ruling and provides that regular business expenses paid for with PPP loan proceeds shall be deductible for tax purposes (applies to past and future loans).

Small Business PPP Information, Tools, and FAQs (Treasury Department)

The Treasury Department is maintaining a CARES Act “Assistance for Small Businesses” web page that contains useful links to borrower and lender information and application forms, interim final rules, and FAQs.

Economic Injury Disaster Loans (EIDL)

Economic Injury Disaster Loans (EIDLs) are lower interest loans of up to $2 million, which principle and interest deferment at the SBA Administrator’s discretion, that are available to pay for expenses that could have been met had the disaster not occurred, including payroll and other operating expenses.

Due to high demand, the SBA has implemented a cap on EIDL loans of $150,000.


Those eligible are the following with 500 or fewer employees:

Small business concerns and small agricultural cooperatives that meet the applicable size standard for SBA are also eligible, as well as most private non-profits of any size.

How to apply

To apply for a COVID-19 Economic Injury Disaster Loan, click here.

Application assistance

While the application process may seem daunting, assistance with preparing financial statements and submitting the loan application is available from the SBTDC and other partners.

For information on the status of your economic injury disaster loan

Contact SBA disaster customer service: (1) By phone at 1-800-659-2955 (TTY/TDD: 1-800-877-8339); or (2) via email at disastercustomerservice@sba.gov

EIDL Advance

The year-end COVID-19 Economic Relief Act provided additional funding for targeted $10,000 grants through the EIDL Advance program. Those eligible were entities that:

The legislation eliminated the requirement that PPP borrowers deduct the amount of the EIDL Advance from their PPP forgiveness amount. This can be retroactively applied to PPP loans before, on or after the December 2020 legislation.

How to Apply

The EIDL Advance is no longer available.

New Targeted EIDL Advance Mapping Tool

For businesses located in low-income communities that received an EIDL loan in 2020, the Targeted EIDL Advance provides additional funds to ensure small business continuity, adaptation, and resiliency. Applicants do not need to take any action at this time. SBA will reach out to those who qualify.

To help applicants determine if they are located in a low-income community as defined in section 45D(e) of the Internal Revenue Code, a lookup tool is now available at https://sbaeidl.policymap.com/app. Note that the business address must be located in a low-income community in order to qualify, so SBA encourages potential applicants to check the map to see if they meet the low-income community eligibility requirements before you apply.

Supplemental Targeted Advance

The Supplemental Targeted Advance provides the smallest and hardest hit eligible businesses with a supplemental payment of $5,000 that does not have to be repaid. Even if you have previously received the original EIDL Advance in the full amount of $10,000, you may be eligible for the Supplemental Targeted Advance if you meet eligibility criteria. The combined amount of the Supplemental Targeted Advance ($5,000) with any previously received EIDL Advance or Targeted EIDL Advance ($10,000) will not exceed $15,000.

Completing the Targeted EIDL Advance application is a requirement to be considered for the Supplemental Targeted Advance, and SBA is reaching out directly to those who may qualify. For more information, visit the SBA’s COVID-19 webpage.

Shuttered Venue Operator Grants (SVOG)

The law creates a new $15 billion grant program for eligible live venue operators or promoters, theatrical producers, live performing arts organization operators, museum operators, motion picture theatre operators, or talent representatives that have experienced at least a 25% drop in revenue.

Grants are equal to the lesser of $10 million or 45% of gross earned revenue in 2019. Grants must be used for specified expenses such as payroll, rent, utilities, and personal protective equipment. If you receive a grant, you may not apply for a new PPP loan. For more detailed information, visit the SBA’s SVOG web page.

The SBTDC has created an overview for the Shuttered Venue Operators Grant (SVOG) that includes information on eligibility, grant amounts, use of grant proceeds, and preparing to apply. Click here for the Overview. The SBTDC has designated 5 counselors to assist with information and questions related to SVOG – click here for details.

5 Things to Know About the Shuttered Venue Operators Grant

  1. SVOG applications open April 26 at 12 p.m. EDT.
  2. Starting at 12 pm EDT, eligible entities will be able to start their SVOG application via the SVOG application portal. Once you begin, remember to save along the way and refer to SBA's SVOG website for reference materials as you go through the process.

  3. Access the SVOG 4506-T from the website.
  4. To meet IRS requirements, a unique SVOG 4506-T is required for the SVOG application and you can find that fillable document on SBA's SVOG website under Supplemental Documents. A video tutorial is also provided to guide you through it.

  5. Review the updated FAQs.
  6. The FAQs were updated on April 6 with information included from questions received on the March 30 national training webinar. If you missed the webinar, you can watch the recording.

  7. Get prepared with these multiple tools.
  8. The SBA has created several tools and resources to help potential SVOG applicants prepare, including:

  9. Tap the SBTDC for technical assistance.
  10. The SBTDC's SVOG Deep Dive Team is available to assist with questions and applications.

    Restaurant Revitalization Fund (RRF)

    The American Rescue Plan Act established the Restaurant Revitalization Fund (RRF) to provide funding to help restaurants and other eligible businesses keep their doors open. This program will provide restaurants with funding equal to their pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023.

    SBA will begin accepting applications via the application portal on Monday, May 3 at 12 p.m. EDT. The application portal will remain open to any eligible establishments until all funds are exhausted.

    In preparation, qualifying applicants should familiarize themselves with the application process in advance to ensure a smooth and efficient application. Follow the steps below:

    For more information, visit sba.gov/restaurants. To view a webinar on the application process, click here.

    SBA Express Bridge Loans

    The Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 with less paperwork. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be term loans or used to bridge the gap while applying for a direct SBA Economic Injury Disaster Loan. If a small business has an urgent need for cash while waiting for decision and disbursement on Economic Injury Disaster Loan, they may qualify for an SBA Express Bridge Loan.

    Businesses may apply for up to $25,000. The loan will be repaid in full or in part by proceeds from the SBA EIDL loan. To find an Express Bridge Loan Lender, see SBA’s Lender Match Tool or contact the NC SBA District Office.

    SBA Loan Debt Forgiveness

    The new law resumes the government payment of monthly principal and interest on small business loans guaranteed by the SBA under the 7(a), 504, and Microloan programs. Borrowers with loans approved by the SBA prior to the CARES Act will receive an additional three months of payments beginning in February of 2021. Those payments will be capped at $9,000 per borrower per month.

    After that, certain borrower will receive an additional five months of payments, including: borrowers with SBA microloans or 7(a) Community Advantage loans or borrowers with any 7(a) or 504 loan in hard hit sectors.

    New SBA loans made or approved between December 22, 2020 and September 30, 2021 will receive six months of government payment of principal and interest, also capped at $9,000 per month.

    Deferments for SBA-Serviced Loans

    To assist borrowers that have been adversely affected by COYID-19-related economic disruptions, the U.S. Small Business Administration (SBA) is providing deferment relief to its existing borrowers on certain SBA-serviced loans (disaster home and business loans and SBA-purchased 504 debentures) through December 31, 2020. For existing SBA borrowers with loans serviced by SBA that were in "regular servicing'" status on March 1, 2020, SBA is providing an automatic deferment of principal and interest. For additional details, see the SBA Procedural Notice.

    Disaster Assistance Overview

    Confused by the new SBA emergency loan programs? The SBTDC’s updated two-page Disaster Assistance Overview summarizes PPP (first and second draw), EIDL, and SVOG, and includes the latest deadlines.