Small businesses struggling from the COVID-19 shutdowns are getting another round of financial help with the latest spending bill passed by Congress. Of the $900 billion approved for COVID-19 relief , $284 billion is slated for the Paycheck Protection Program, with some changes.To qualify for this latest round of PPP funding, business owners must prove:The business was operating before February of 2020Has fewer than 300 employeesGross income must have fallen 25 percent or more from any quarter in 2019 to 2020.The new loans will be tax deductible and people can apply even if they previously applied and got a PPP loan from the first round. Non profits can also now apply for a loan.”At this point, anything helps,” Craig Takehara, chef and owner of Binchoyaki said. Takehara lost 75 percent in sales revenue because of the COVID-19 shutdowns. His restaurant is surviving now on takeout orders and the Great Plates partnership with the state to feed seniors in need. Takehara managed to get a PPP loan last year, but not immediately. He is now working through the paperwork to get his loan forgiven, but even that, he is says, is a complicated process. “Small mom and pop shops like ourselves, we don’t have bank funding in the background, we don’t have investors, we just put up all our own money,” said Takehara. “I would think that we would hopefully come first in that aspect.”Sentiments echoed by Heather Wong of Sacramento’s All Spicery.”There were a lot of frustrations with how easy the larger chains seemed to get the funds, and how they seemed to be flouting the spirit of the program,” said Wong. That’s one reason why Takehara is cautiously optimistic about getting another loan. “Hopefully it won’t be so difficult this time,” said Tekehara. Wong says she’s skeptical about the second stimulus package, citing her experience applying for a loan the first time. “The whole process was rife with stress and anxiety,” explained Wong. “There were hiccups with the application process, things weren’t able to be uploaded when we thought they could be uploaded, banks were rolling out things at different times. You didn’t want to put in the wrong information and get dinged for that.” Wong said her business may not even qualify for the second PPP loan. Unlike many small stores during the pandemic, All Spicery saw positive growth. The new loans are capped at $2 million dollars. The deadline to apply for this latest round of support is March 31.
Small businesses struggling from the COVID-19 shutdowns are getting another round of financial help with the latest spending bill passed by Congress. Of the $900 billion approved for COVID-19 relief , $284 billion is slated for the Paycheck Protection Program, with some changes.
To qualify for this latest round of PPP funding, business owners must prove:
- The business was operating before February of 2020
- Has fewer than 300 employees
- Gross income must have fallen 25 percent or more from any quarter in 2019 to 2020.
The new loans will be tax deductible and people can apply even if they previously applied and got a PPP loan from the first round. Non profits can also now apply for a loan.
“At this point, anything helps,” Craig Takehara, chef and owner of Binchoyaki said.
Takehara lost 75 percent in sales revenue because of the COVID-19 shutdowns. His restaurant is surviving now on takeout orders and the Great Plates partnership with the state to feed seniors in need. Takehara managed to get a PPP loan last year, but not immediately. He is now working through the paperwork to get his loan forgiven, but even that, he is says, is a complicated process.
“Small mom and pop shops like ourselves, we don’t have bank funding in the background, we don’t have investors, we just put up all our own money,” said Takehara. “I would think that we would hopefully come first in that aspect.”
Sentiments echoed by Heather Wong of Sacramento’s All Spicery.
“There were a lot of frustrations with how easy the larger chains seemed to get the funds, and how they seemed to be flouting the spirit of the program,” said Wong.
That’s one reason why Takehara is cautiously optimistic about getting another loan.
“Hopefully it won’t be so difficult this time,” said Tekehara.
Wong says she’s skeptical about the second stimulus package, citing her experience applying for a loan the first time.
“The whole process was rife with stress and anxiety,” explained Wong. “There were hiccups with the application process, things weren’t able to be uploaded when we thought they could be uploaded, banks were rolling out things at different times. You didn’t want to put in the wrong information and get dinged for that.”
Wong said her business may not even qualify for the second PPP loan. Unlike many small stores during the pandemic, All Spicery saw positive growth.
The new loans are capped at $2 million dollars. The deadline to apply for this latest round of support is March 31.