Resource Roundup – PPP and Business Support 2.0

President Trump signed the legislation today to replenish business relief programs and support hospitals and COVID-19 testing.

The package totals $484 billion and includes:

  • An additional $310 billion in funding for the Paycheck Protection Program (PPP), with $60 billion reserved for small banks and lending institutions
  • $75 billion for hospitals
  • $25 billion to support testing efforts
  • $60 billion for emergency disaster loans and grants (EIDLs)

In a recent virtual town hall hosted by Inc., U.S. Chamber of CommerceExecutive Vice President and Chief Policy Officer Neil Bradley advised applying for this second round if you own a business and need support, despite frustrations shared by many about the first round’s allocations. “I would apply for the loan. If you look at loans already pending, I think the $310 billion is going to go quickly,” he says. “If you get it, great. If you don’t, there might be another tranche. You’re going to want to be in line.”

The funds reserved for smaller lending institutions are just under 20% of the PPP replenishment. It is hoped that portion will prevent more of the stories we’ve been reading in the last week in which large businesses with stronger bank relations were allocated maximum loans while small businesses wait in Limbo.

Credit unions, Community Development Financial Institutions (CDFIs), and FinTech lenders are potentially a good place to start for small businesses, says Michelle Sourie Robinson, President and CEO of the Michigan Minority Supplier Development Council. If you plan to apply through such a lender, be sure to call ahead to make sure the lender has been approved by the SBA to participate. Not all institutions are involved and some that wish to be are still awaiting approval, cautions Bradley.

The EIDL program is a good option for businesses with non-payroll related needs. Unfortunately, with the extremely high demand, Bradley anticipates the grants will remain capped at the recently adjusted rate of $1,000 per employee, as opposed to the original $10,000 per approved business.

If you are concerned about rent (which EIDL money is well suited to cover if you get it), Bridget Wetson, Acting CEO of SCORE, suggests negotiating with landlords. They would likely prefer to deal with current tenants rather than seek new ones, she reasons. Rent reductions, deferrals, or (for retail businesses) switching from base rates to percentage rates may be possible. Be sure to formalize such agreements in writing.



Note: This is a summary of aggregated information from other parties and does not express the direct advice of Sam Goldenberg & Associates.

Resource Roundup – Approval for Second Small Business Funding Package

Congress and the White House have reached an agreement for the second round of funding for business relief programs. Details are forthcoming.

It’s expected that the package will total $450 billion and include:

  • $300 billion for the Small Business Administration’s popular Paycheck Protection Program (PPP)
  • $50 billion for the Economic Injury Disaster Loan (EIDL) program
  • $25 billion for testing
  • $75 billion for hospitals

Notably, $125 billion of the PPP money will be set reserved for small businesses that don’t have strong relationships with local banks. (Hopefully this will address one of the primary problems with the first round.)

The replenishing of the EIDL program is coming sooner than some expected. This program is potentially a good fit for businesses with non-payroll related needs.

Many businesses find themselves in a  Limbo state, having applied for PPP assistance before the first round’s funding was depleted and not having heard if they were approved. The SBA generates a unique loan origination number upon approval.

“If you’ve already gotten that loan origination number from the Small Business Administration or your lender has that, you are part of that [original round of funding] and you should be getting your loan disbursed,” said Executive Vice President and Chief Policy Officer at the U.S. Chamber of Commerce Neil Bradley said. “The thing to check on is where you are in that approval process.”

Stay tuned for updates!


Note: This is a summary of aggregated information from other parties and does not express the direct advice of Sam Goldenberg & Associates.


Resource Roundup – Independent Contractors and Payroll Calculations

There has been a lot of confusion around how independent contractors engage with the Paycheck Protection Program.  See, for example, this letter to Treasury Secretary Mnuchin y Forbes Senior Contributor Tony Nitti delineating some vexing points.

To clarify, independent  contractors are not included in an employer’s PPP loan amount.

“As an employer and borrower, what you pay independent contractors and 1099s does not count toward your payroll cost in calculating how much you can borrow and how much can be forgiven,” says U.S. Chamber of Commerce Executive Vice President Neil Bradley.

While small businesses and solopreneurs have had access to PPP loans since last Friday, April 3, there is a separate PPP loan process for 1099 workers. 1099 workers will be eligible to apply for PPP support this Friday, April 10. We will share more information as it’s available.

Resource Roundup – Avoid Scams and Fraud Schemes

Be careful to avoid fraud schemes, cautions New Mexico Small Business Development Center Executive Director Russel Wyrick. Information about around relief programs for small businesses is changing at a dizzying rate right now. Unfortunately, some scams are already attempting to capitalize on the confusion. In a webinar hosted today by the New Mexico Economic Development Department, Wyrick shared some tips for avoiding traps and scams.

Additionally, if you’ve applied for an EIDL, all communications will include your EIDL number. Do not send sensitive information to requests that do not reference that ID.

Note: This is a summary of aggregated information from other parties and does not express the direct advice of Sam Goldenberg & Associates.

Resource Roundup – Paycheck Protection Program or Economic Injury Disaster Loans?

What are the relative merits of the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) options? This question comes up a lot lately amidst the whirlwind of new information about business relief programs.  The infographic below, by Live Oak Bank, provides a helpful and concise comparison.

Steve Mariani, President and Founder of Diamond Financial Services, shared some additional insights in a webinar hosted by the International Business Brokers Association. Key takeaways from Mariani’s talk include the following:

  • The EIDLs are available now if you need funds to keep your business afloat.
  • 75% of PPP funding must be used to cover payroll. Only 25% can be used for other expenses like rent, utilities, etc.
  • Be careful calculating payroll. If you ask your payroll company for a report, it might not include things like simple IRA employee expenses and health insurance reimbursements. Be thorough!
  • If you receive $10 thousand dollars or less from an EIDL, there is an option to roll that amount into a PPP loan.
  • If you plan to apply for PPP support, Mariani suggests you do so quickly and through a lender with whom you have a current relationship. He says lenders are prioritizing current clients.

Lenders are working to interpret and implement the approximately 1,000 pages of information released in the last week. Updates will become available soon as procedures are put in place to process applications. Stay tuned!

Note: This is a summary of aggregated information fro other parties and does not express the direct advice of Sam Goldenberg & Associates.

Resource Roundup – U.S. Chamber of Commerce Vice President Shares Relief Package Advice for Small Businesses

With the $2 trillion CARES Act economic relief package just passed in the House and President Trump expected to sign the bill into law today, small business owners will have access to new channels of support and payments. How can your business take advantage of these opportunities and be strategic during this time?

U.S. Chamber of Commerce Executive Vice President and Chief Policy Officer Neil Bradley shared insights and advice this morning in a virtual Town Hall meeting hosted by Inc. and joined by other experts. Here are some of the key takeaways from this session.

See the U.S. Small Business Administration and Chamber of Commerce for more information and extensive guidelines.


Neil Bradley, U.S. Chamber of Commerce

Kimberly Weisul, Inc. Editor at Large (Moderator)

David Barron, Cozen O’Connor

Marilyn Landis, Basic Business Concepts, Inc.

Shari Levitin, Shari Levitin Group

Christel Slaughter, SSA Consultants


A main goal of the stimulus package is to remove bottlenecks and roadblocks that might hinder receipt of relief. Sustaining employment is another important focus. To these ends, lenders are being added, high-risk limitations are being waived, and forgiveness policies are being implemented.

Who qualifies?

Businesses with 500 or fewer employees that would normally qualify for SBA loans will clearly qualify. Businesses may also be able to qualify based on revenue. Additionally, extensions are available for 501(c)(3) nonprofits, veterans organizations, food and hospitality businesses (based on the headcount per location, not entire business), and self-employed contractors. Affiliate rules are relaxed for franchisees, food, and hospitality. The SBA cannot require collateral, and high-risk classification does not apply under these circumstances.


Bradley was optimistic that loans will be available within two weeks. “I would bet that if we were doing this call next week, we would be talking to folks who have already applied for the loans and were in the process of receiving it,” he said.


The maximum loan size is $10 million. Loans will be based on payroll cost, specifically average monthly payroll cost in 2019 multiplied by 2.5. This includes wages for employees making under $100,000, paid sick leave, health care, and other benefits.

Forgiveness Policies

Dollar to dollar forgiveness will be implemented based on small business expenses during the 8-week period following the origination of the loan. Payroll, utilities, rent, mortgage debt interest will be directly subtracted from the debt.

Employee Headcount

The dollar for dollar forgiveness holds for employees whose wages are not cut by more than 25% for employees making $100,000 per year or less. It also holds for employees who may have been furloughed and brought back on board in response to the relief package.

Economic Injury Disaster Loans

Small businesses can request an immediate advance up to $10,000 on EIDLs. This advance does not need to be repaid, but the money does interact with the paycheck protection forgiveness program.


Forgiveness only applies to the extent you meet exact terms. Beware the backside and plan carefully. These loans are still debt, so be strategic about what you need. What expenses will increase as sales go up? Will normal cash flow be enough to cover repayments?



Note: This is a summary of information shared in the Virtual Town Hall and does not express the direct advice of Sam Goldenberg & Associates.