Opportunities for Small Businesses
FORGIVABLE PPP LOANS
First time PPP borrowers:
- Businesses and non-profits (including sole proprietors and independent contractors) in operation prior to February 2020 with less than 500 employees.
- There’s no revenue loss requirement.
- Can receive up to 2.5 times the businesses’ average monthly payroll costs and healthcare costs or $10 million — whichever is less.
- Use of funds:
- Payroll (no more than $100,000 annual salary per employee).
- Benefits (including paid sick leave and insurance premiums) and taxes on compensation.
- Mortgage interest, rent and utilities.
Second time PPP borrowers:
- Businesses and non-profits (including sole proprietors and independent contractors) with less than 300 employees.
- Gross income must have fallen 25% or more in the first, second, or third quarter of 2020 compared to the same quarter in 2019.
- Can receive up to 2.5 times the businesses’ average monthly payroll costs and healthcare costs or $2 million — whichever is less.
- Food service and accomodation industries such as hotels, restaurants, and caterers can receive 3.5 times the businesses’ average monthly payroll and healthcare costs or $2 million — whichever is less.
- Use of funds:
- Payroll (no more than $100,000 annual salary per employee)
- Benefits (including paid sick leave and insurance premiums) and taxes on compensation
- Mortgage interest, rent and utilities
Expenses that count towards PPP loan forgiveness:
- All payroll and healthcare expenses.
- Non-payroll expenses that still contribute towards forgiveness include:
- Personal Protective Equipment (PPE) costs to help businesses comply with federal and local guidelines for health and safety related to COVID-19.
- Software, cloud computing, human resources, and accounting needs.
- Any spending not covered by insurance that is related to property damage due to incidents that took place in 2020.
- Supplier costs on essential goods. For example, a restaurant’s purchase of perishable goods.
Application Process for PPP Loans:
- Applications will be accepted through March 31, 2021
- Submit applications to the bank with whom you do business, or contact banks and lenders in your area to find out if they are supporting the PPP program
Free Legal and Technical Assistance:
- For free legal assistance submitting your application or questions about your eligibility, contact the Covid Relief Coalition
Massachusetts Growth Capital Corporation (MGCC) Grants
Grants up to $75,000 but capped at three months of operating expenses based on 2019 Federal Income Tax Returns
- Priority will be given to restaurants, bars, caterers, and food trucks that collect and remit meals tax, indoor recreation or entertainment establishments, gyms or fitness centers, personal services, event support companies, and independent retailers.
- You should not apply if:
- You are not showing an operating loss due to the COVID-19 pandemic.
- Have access to other sources of financial relief.
- Have been able to continue to operate without significant financial distress.
- Have adequate available reserves.
- Use of Funds:
- Funds may be used for employee payroll and benefit costs, mortgage interest, rent, utilities and interest on other debt obligations.
- Application Process:
- Applications will be accepted until January 15, 2021 at 11:59 PM
- Submit applications through MGCC’s online application portal
- Free Technical Assistance:
- For assistance with your application or questions, contact a LISC Business Advisor