PPP Updates from Brian McDonald, District Director U.S. SBA’s MN District
Article by Becky Fillinger
We spoke to District Director Brian McDonald of the SBA one year ago about the newly announced COVID-19 relief programs. We caught up with him to revisit what has changed with relief resources, important dates and how Minnesotans may receive assistance.
Q: How have the federal COVID-19 relief programs helped the smaller small businesses and those who are independent contractors, including artists and musicians for example? Do they apply for the loans in the same way as traditional small businesses?
A: The SBA has multiple COVID-19 relief programs that have been helping small businesses, non-profits, sole proprietors and independent contractors. Made available last year, the SBA’s Economic Injury Disaster Loan Program and Paycheck Protection Programs have had billions of dollars added to them by Congress in the last several months. Key changes have also been made to allow more people to take advantage of them.
Q: What changes has Congress made to the Paycheck Protection Program and EIDL that would be of interest to Minnesotans?
A: The PPP keeps workers on payroll and connected to their benefits during the COVID-19 pandemic. This past February, the SBA, working with the Biden-Harris Administration, implemented five PPP changes to achieve more equitable access to this program, anchor neighborhoods especially in low to moderate income and rural areas, and help families to build wealth:
Additionally, the PPP Extension Act of 2021 signed into law by President Biden on March 30, 2021, extended the PPP for two months to May 31, 2021, and provided an additional 30-day period for the SBA to process pending loan guaranty applications submitted on or before May 31, 2021.
Lastly, the SBA announced it will more than triple the maximum amount small businesses and non-profit organizations can borrow through the SBA’s Economic Injury Disaster Loan Program. Beginning April 6, 2021, loan eligibility will increase from 6-months of economic injury up to a maximum of $150,000 to 24-months of economic injury up to a maximum of $500,000.
Q: What are your perceptions of how the relief programs were administered in Minnesota?
A: The SBA Minnesota District Office continues to aid and provide guidance to small business owners and non-profits across the state. Almost 100,000 Minnesota small businesses have gotten approval for PPP loans as of last week totaling over $4.7 billion; approximately 41,780 EIDL loans also reached eligible small business entities providing more than $2.3 billion. We’re grateful for the positive feedback we have received.
We are also extremely grateful to our SBA Resource Partners, including SCORE Mentors, SBA Women’s Business Centers and the Small Business Development Centers business advisors who provide free, one-on-one assistance to small business owners and potential applicants; connecting small businesses with real people who can work with them every step of the way is making a big a positive impact.
Q: Are there new relief programs this year?
A: The Economic Aid Act and American Rescue Plan Act have delivered more relief for small business owners. Primarily, the two widely known programs that will soon launch to assist some of the hardest-it industries are the Shuttered Venue Operators Grant program, which has $16.2 billion available for grants to eligible entities as well as the Restaurant Revitalization Fund which includes a $28.6 billion Congressional appropriation to assist businesses where people assembly for the primary purpose of being served food or drink.
Targeted EIDL Advance also is new and provides businesses in low-income communities with additional funds up to $10,000 to ensure small business continuity, adaptation, and resiliency. Potential applicants for this program do not need to take any action; the SBA is reaching out to those who qualify.
Q: Thank you for speaking with us again. How can we stay current on the SBA news?
A: The best way to stay up to date on vital economic aid news is to sign-up for updates at www.sba.gov/updates. If you’re on Twitter, you can also follow the SBA nationally at @SBAgov and the Minnesota District Office at @SBA_Minnesota.