How important was the program to small businesses?

• More than half the loans and nearly a third of the loan money were distributed in 2021.
  
• The average loan size was $46,000 (less than half the $101,000 average loan in 2020. )
  
• Companies were drawn to the loans because they promised forgiveness if the money is used for payroll and other essentials.

Other SBA administered disaster loan programs | Click to find information regarding other SBA programs, including some designated for specific small business categories like restaurants and theaters..

“(Customers) rely more on the internet to research and discover products to buy. For example, search interest for products like the “best exercise bikes,” “best ring lights” and “best air fryers” increased by 100% or more in the last year. Shoppers don’t just turn to Google for things they want to buy on the web; they also use Google to find what they need nearby. Over the past year, we’ve seen a significant increase in commercial intent across Google including Google Search, Google Maps and YouTube,”

Igor Liskovets
Google director online to offline ad solutions

Shopping Nearby with Google Search

Whether it’s to support small businesses in their community or ensure a nearby store has the item they need in stock, consumers are using Google Search to research their shopping trips in advance. 

Here are some examples of the phenomena.

• Searches for “local” + “business(es)” have grown by more than 80% year over year, including searches like “local businesses near me” and “support local businesses.”
• Searches for “who has” + “in stock” have grown by more than 8,000% year over, including searches like “who has nintendo switch in stock” and “who has gym equipment in stock.”

Google has seen an increase in online research before heading out to a restaurant or to get takeout.

At Google, the company recently found that:

• 66% | Percentage of dining consumers who said they used search to find food and beverage information during the pandemic.
• 57% | Percentage of dining consumers who said they discovered food and beverage information during the pandemic via online ads.

Exploring new products on YouTube

YouTube has become a part of not just the shopping process, but the local shopping process too. For example:

• 45% | Percentage of viewers say they watch YouTube to see a product demo before buying.
• 2% | Percentage of viewers say they are 2x more likely to go in-store or online to buy something they saw on YouTube versus the competitive average.

Starting their journey on Google Maps

Google Maps has become a more critical part of the local user experience, as people use maps to explore something they’re interested in, versus just for navigation:

• Searches on Google Maps for “curbside pickup” have increased 9000% year over year in the U.S.
• Searches on Google Maps for “discounts” have grown globally by more than 100% year over year.
• Searches on Google Maps for “gift shop” have grown globally by more than 60% year over year.

Visits to local stores and restaurants continue to be top of mind in the new year:

Top Generic Searches on Google Maps:

• restaurants
• hotels
• restaurants near me
• gas
• food
• food near me
• grocery store
• gas station
• coffee
• pizza

Top Brands Searched on Google Maps:

• walmart
• starbucks
• home depot
• target
• mcdonald’s
• costco
• chick fil a
• walgreens
• cvs
• bank of america

Source: Google Data, U.S., February 2021

Connect offline shoppers to your store.

1. Support your local small business: In 2020, Google helped drive over two billion direct connections, including phone calls, requests for directions, messages, bookings and reviews for U.S. businesses.

2. If you run a business with physical stores: It’s crucial to make sure your customers can easily find you online. Check our Google’s best practices guide on how to drive offline sales with online ads. 

• GOOGLE ADS
• Thanks to Igor Liskovets, Google director online to offline ad solutions
• GettyImage
  
  
  

The House and Senate had already approved the extention with bi-partison support. Congress and the President did not have to allocate any new funds with today’s extension. The PPP has about $110 billion left to lend.

Through March 7, the PPP has approved 2.4 million loans worth about $165 billion.

• Under the new rules announced by the Biden administration at the end of February, businesses with fewer than 20 employees received an exclusive two-week period to apply for loans.
• Bigger companies were shut out of the program during that time frame, part of an effort to ensure the hardest-hit businesses can receive the aid they need.
• Businesses can choose to spend the funds over any period of time between eight and 24 weeks. At least 60% of the money must be spent on maintaining payroll in order to receive full forgiveness.
• The average loan across all industries has been $64,428.

The PPP allows the loans to be forgiven if the borrower spends the funds in accordance with SBA guidelines. Those regulations permit outlays for payroll, rent, mortgage payments and utilities, among other charges.

The Paycheck Protection Program Extension Act will allow loan applications to the program—currently set to expire on March 31—for two more months and give the Small Business Administration 30 additional days to process loan applications made by the new May 31 deadline.

“This legislation will help ensure that small businesses that have already applied for a PPP loan will be able to get that loan processed, rather than risk seeing this program end before their paperwork can be completed. It will also provide more time for still-struggling small businesses that have not yet applied for a PPP loan to do so,”“Providing an additional two months for small business borrowers to access PPP funding and an extra month for SBA to process PPP loans is a common-sense step that will support the economic recovery.”

Rob Nichols
President and CEO. American Bankers Association

Earlier last week, the SBA noted that two million PPP applications have been held up by error codes and approximately 190,000 applications remain unapproved. This reinforces the great need for extending the loan application deadline.

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Yesterday (March 17, 2021), the Internal Revenue Service (IRS) and Treasury Department pushed back the tax filing deadline by a month. Income taxes and payments will now be due May 17 instead of April 15.

(The information in this article was provided by the IRS, however, you should always refer to your tax advisor before making any decision regarding taxes.)

“This continues to be a tough time for many people, and the IRS wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic, while also working on important tax administration responsibilities, Even with the new deadline, we urge taxpayers to consider filing as soon as possible, especially those who are owed refunds. Filing electronically with direct deposit is the quickest way to get refunds, and it can help some taxpayers more quickly receive any remaining stimulus payments they may be entitled to.”

IRS Commissioner Chuck Rettig

• Individual taxpayers can also postpone federal income tax payments for the 2020 tax year due on April 15, 2021, to May 17, 2021, without penalties and interest, regardless of the amount owed.
  
• This postponement applies to individual taxpayers, including individuals who pay self-employment tax. Penalties, interest and additions to tax will begin to accrue on any remaining unpaid balances as of May 17, 2021. Individual taxpayers will automatically avoid interest and penalties on the taxes paid by May 17.
  
• Individual taxpayers do not need to file any forms or call the IRS to qualify for this automatic federal tax filing and payment relief.
  
• Individual taxpayers who need additional time to file beyond the May 17 deadline can request a filing extension until Oct. 15 by filing Form 4868 through their tax professional, tax software or using the Free File link on IRS.gov.
  
• Filing Form 4868 gives taxpayers until October 15 to file their 2020 tax return but does not grant an extension of time to pay taxes due. Taxpayers should pay their federal income tax due by May 17, 2021, to avoid interest and penalties.

The IRS urges taxpayers who are due a refund to file as soon as possible. Most tax refunds associated with e-filed returns are issued within 21 days.

This relief does not apply to estimated tax payments that are due on April 15, 2021. These payments are still due on April 15. Taxes must be paid as taxpayers earn or receive income during the year, either through withholding or estimated tax payments.

In general, estimated tax payments are made quarterly to the IRS by people whose income isn’t subject to income tax withholding, including self-employment income, interest, dividends, alimony or rental income. Most taxpayers automatically have their taxes withheld from their paychecks and submitted to the IRS by their employer.

State tax returns

State filing and payment deadlines
vary and are not always the same as the federal filing deadline.

The federal tax filing deadline postponement to May 17, 2021, only applies to individual federal income returns and tax (including tax on self-employment income) payments otherwise due April 15, 2021, not state tax payments or deposits or payments of any other type of federal tax. Taxpayers also will need to file income tax returns in 42 states plus the District of Columbia. State filing and payment deadlines vary and are not always the same as the federal filing deadline.

The IRS urges taxpayers to check with their state tax agencies for those details.

Credit: GettyImages

The SBA also announced four additional changes to open the PPP to more underserved small businesses.

According to the White House, the enhanced PPP will…

• Allow sole proprietors, independent contractors, and self-employed individuals to receive more financial support by revising the PPP’s funding formula for these categories of applicants

• Eliminate an exclusionary restriction on PPP access for small business
owners with prior non-fraud felony convictions, consistent with a
bipartisan congressional proposal

• Eliminate PPP access restrictions on small business owners who have
struggled to make student loan payments by eliminating student loan debt
delinquency being a disqualifier to participating in the PPP

• Ensure access for non-citizen small business owners who are lawful U.S. residents by clarifying that they may use Individual Taxpayer Identification
Number (ITIN) to apply for the PPP.

According to the President, 400,000 small businesses have closed during the pandemic, and “millions more are hanging by a thread.”

Biden noted that 98% of small businesses fit into this category. By temporarily limiting the approval process to them, the goal is to get more money to ventures that have a harder time accessing capital than their larger counterparts do. 

Links to information prepared by the SBA

• Coronavirus relief options
• Biden Administration takes steps to promote equitable access to SBA relief
• Coronavirus recovery information in languages other than English
• Guidance for businesses and employers
• Local assistance
• Additional SBA resources

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February 24, 2021 | The National Retail Federation (NRF) today issued its annual forecast. These are highlights from the association’s coverage.

Online and other non-store sales, which are included in the total figure, skyrocketed to 21.9 percent at $969.4 billion as consumers shifted to eCommerce. 

Prediction | Retail sales will grow between 6.5 percent and 8.2 percent to more than $4.33 trillion in 2021 as more individuals get vaccinated and the economy reopens.

“Despite the continuing health and economic challenges COVID-19 presents, we are very optimistic that healthy consumer fundamentals, pent-up demand and widespread distribution of the vaccine will generate increased economic growth, retail sales and consumer spending, From the outset of the pandemic, retailers have gone above and beyond even the most conservative safety guidelines to protect and serve their associates and consumers alike. Retailers are increasingly engaged in working with federal, state and local health officials to distribute and administer the vaccine. This partnership has been key to our economic health throughout the pandemic and will continue this year.”

NRF President and CEO Matthew Shay

Early results show that retail sales in 2020 grew 6.7 percent over 2019 to $4.06 trillion, nearly doubling NRF’s forecast of at least 3.5 percent growth, which did not account for the impact of a global pandemic. 

The numbers exclude automobile dealers, gasoline stations and restaurants.

The 2020 November-December holiday season accounted for nearly one-fifth (19.4 percent) of overall annual retail sales. 

Retail sales during this period grew an unexpectedly high 8 percent to $787.1 billion. Non-store and other online sales represented $206.9 billion of total holiday sales, up 22.6 percent over the year before.

NRF forecasts that 2021 retail sales are estimated to total between $4.33 trillion and $4.4 trillion. Online sales, which are included in the total, are expected to grow between 18 percent and 23 percent to between $1.14 trillion and $1.19 trillion.

NRF expects the overall economy to gain between 220,000 and 300,000 jobs per month in 2021, depending on the pace of the overall economy in the second and third quarters.

Despite the economy’s stalled momentum at the end of last year, NRF forecasts real GDP growth between 4.5 percent and 5.0 percent. 

“The trajectory of the economy is predicated on the effectiveness of the vaccine and its distribution,” NRF Chief Economist Jack Kleinhenz said. “Our principal assumption is that that the vaccination will be effective and permits accelerated growth during the mid-year. The economy is expected to see its fastest growth in over two decades.”

Kleinhenz noted that this year marks the second year of savings, record high stock valuations, increased home prices, enhanced government support and record low interest rates, which are all contributing factors towards the economy and consumer spending behavior. 

Additionally, Kleinhenz said households will still consume retail goods but will turn to services as they are able, which normally account for 70 percent of consumer spending.

While the pandemic has precipitated broader adoption of multichannel services for the retail industry, households are becoming attached to the convenience and product selection of buying online. 

As the available data and factors surrounding the economy are subject to change due to several extenuating circumstances, NRF will update its estimates accordingly.

Note | Press Release

First Draw PPP Loans

An SBA loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis.
Learn more

Second Draw PPP Loans

Eligible businesses may apply for a Second Draw PPP loan.
Learn more

PPP Loan Forgiveness

Borrowers may be eligible for loan forgiveness.
Learn more

PPP Lender Information

Information and resources for lenders participating in the Paycheck Protection Program.
Learn more

PPP Data

Data and reports related to the Paycheck Protection Program.
Learn more

Apply for the Paycheck Protection Program

Find an eligible lender to apply for the Paycheck Protection Program.
FIND A LENDER
Use this SBA map

These links were supplied by the SBA. Before borrowing money from any source, seek advice from a trusted advisor with experience — preferably with the first round PPP.

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• First Draw PPP Loans for first time program participants
• Second Draw PPP Loans beginning January 13, 2021 for certain businesses who have previously received a PPP loan

The SBA is currently accepting Paycheck Protection Program PPP loan applications from participating lenders.

• Lender Match can help connect you with a lender.
• You can also view all lenders near you on a map.

PPP Reopened January 11

First Draw PPP Loans started on Monday, January 11, and Second Draw PPP Loans on Wednesday, January 13.  The PPP will open to all participating lenders shortly thereafter. Updated PPP guidance outlining Program changes to enhance its effectiveness and accessibility was released on January 6 in accordance with the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act.

This round of the PPP continues to prioritize millions of Americans employed by small businesses by authorizing up to $284 billion toward job retention and certain other expenses through March 31, 2021, and by allowing certain existing PPP borrowers to apply for a Second Draw PPP Loan.

Key PPP updates include:

• PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs;
• PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
• The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, direct marketing organizations, among other types of organizations;
• The PPP provides greater flexibility for seasonal employees;
• Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; and
• Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan. 

A borrower is generally eligible for a Second Draw PPP Loan if the borrower:

• Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
• Has no more than 300 employees; and
• Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

The new guidance released includes:

• PPP Guidance from SBA Administrator Carranza on Accessing Capital for Minority, Underserved, Veteran, and Women-owned Business Concerns
• Interim Final Rule on Paycheck Protection Program as Amended by Economic Aid Act
• Interim Final Rule on Second Draw PPP Loans.

For more information on SBA’s assistance to small businesses, visit sba.gov/ppp or treasury.gov/cares. 

The U.S. Small Business Administration (SBA), in consultation with the Treasury Department, announced Friday (January 10, 2021) that the Paycheck Protection Program (PPP-2) will re-open the week of January 11 for new borrowers and certain existing PPP borrowers. (The following information was prepared by the SBA.)

Guidelines from the SBA and Treasury Deartment

• To promote access to capital, initially, only community financial institutions will be able to make First Draw PPP Loans on Monday, January 11, and Second Draw PPP Loans on Wednesday, January 13. 
  
• The PPP will open to all participating lenders shortly thereafter. Updated PPP guidance outlining Program changes to enhance its effectiveness and accessibility was released on January 6 in accordance with the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act.
  
• This round of the PPP continues to prioritize millions of Americans employed by small businesses by authorizing up to $284 billion toward job retention and certain other expenses through March 31, 2021, and by allowing certain existing PPP borrowers to apply for a Second Draw PPP Loan.
  
• “The Paycheck Protection Program served as an economic lifeline to millions of small businesses and their employees when they needed it most,” said SBA Administrator Jovita Carranza.  “Today’s guidance builds on the success of the program and adapts to the changing needs of small business owners by providing targeted relief and a simpler forgiveness process to ensure their path to recovery.”

“The Paycheck Protection Program has successfully provided 5.2 million loans worth $525 billion to America’s small businesses, supporting more than 51 million jobs. This updated guidance enhances the PPP’s targeted relief to small businesses most impacted by COVID-19.  We are committed to implementing this round of PPP quickly to continue supporting American small businesses and their workers.”

Treasury Secretary Steven T. Mnuchin 

Key PPP updates

• PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs
  
• PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures
  
• The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, destination marketing organizations, among other types of organizations
  
• The PPP provides greater flexibility for seasonal employees
  
• Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount
  
• Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan. 

When is a borrower generally eligible for a Second Draw PPP Loan?

• When the borrower reviously received a First Draw PPP Loan and will or has used the full amount only for authorized uses
• When the borrower has no more than 300 employees
• When the borrower can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020

Additional guidance links

• PPP Guidance from SBA Administrator Carranza on Accessing Capital for Minority, Underserved, Veteran, and Women-owned Business Concerns;
• Interim Final Rule on Paycheck Protection Program as Amended by Economic Aid Act
• Interim Final Rule on Second Draw PPP Loans.
• PDF — PPP borrower application. (See participating bank or other financial institution.)

For more information visit sba.gov/ppp or treasury.gov/cares. 

This resource was prepared and distributed by the US SBA with assistance of the U.S. Department of Treasury. Always seek the guidance of a trusted financial advisor when borrowing money or making financial decisions related to your business.

Credit: stockstudioX via GettyImages

(Update: Monday, December 28, 2020)

On Sunday night, President Trump signed legislation for $900 billion in coronavirus economic aid and $1.4 trillion in government spending and preventing a government shutdown. Here are some highlights related to small businesses that are in the stimulus plan.

The “Second draw” PPP loans put more emphasis on very small businesses, including those that have the following:

• 300 or fewer employees AND
• Had at least a 25% reduction in gross receipts in one or more quarters of 2020 when compared to comparable quarters of the year before (with some caveats for seasonal and newer businesses).

What your business may be able to access:

There will be a new, simplified application for loans of $150,000 or less, including loans that have already been made but not forgiven.

As with any issue related to taxes or money, it is critical to get advice from a trusted tax, accounting, banking, or other professional before making financial decisions.

PREVIOUS POSTS IN THIS THREAD

• This is breaking news. The legislation must be signed by the President to become law. Most recent update: December 22, 2020. 5:04 PM
  
• According to Politico, Sen. Ben Cardin of Maryland, the top Democrat on the Senate Small Business Committee, said he believed the window for so-called Paycheck Protection Program loans should reopen within a matter of days “because that process is understood.”
  
• The timeline offered by the senior lawmaker indicated that the SBA and the Treasury Department face pressure to move quickly during the upcoming holiday week to revive the PPP, which was a major piece of the Covid-19 relief bill Congress passed this week.

• Recommended reading at the Journal of Accountancy:
  
  “The U.S. Senate and House of Representatives overwhelmingly passed a $900 billion COVID-19 relief bill Monday night that provides $600 stimulus payments to individuals, adds $300 to extended weekly unemployment benefits, and provides more than $300 billion in aid for small businesses”
  

• Lawmakers have agreed on a $900 billion Covid stimulus package (December 21, 2020).
  
• The legislation sets aside $284 billion towards forgivable small-business loans under a new iteration of the Paycheck Protection Program.
  
• Small businesses that took a PPP loan and saw their revenues fall by 25% will be able to obtain a second loan.
  
• Congress will also allow PPP borrowers to take tax deductions for covered business expenses.
  
• The legislation is complicated and you should always check with your accountant, financial advisor before making any assumption.

Here are more provisions in the legislation related to small businesses and the pandemic.

• Small businesses may receive a second PPP loan if they have fewer than 300 employees and can prove that their revenue has fallen by 25%.
• $284 billion will be targeted to forgivable loans through the Paycheck Protection Program.
• Generally, borrowers are eligible for PPP loan forgiveness if they apply at least 60% of the proceeds to payroll.
• The maximum amount for a second draw will be $2 million.
• The legislation also creates a simplified forgiveness application for businesses that took PPP loans under $150,000.
• Firms that received a cash advance through the Economic Injury Disaster Loan program also will no longer have to deduct the advance from their PPP loan forgiveness amount.

Again, the legislation is complicated and you should always check with your accountant or trusted financial advisor before making any assumption or actions. We will continue to update this page.