The small business community serves as the foundation of our community’s recovery from the Coronavirus pandemic. At GRB, we are ready to assist as a Small Business Administration (SBA) preferred lender.
Monroe County Fast Forward 2.0
Monroe County announced the launch of Fast Forward Monroe 2.0, an expansion of the successful Fast Forward Monroe Small Business Grant Assistance initiative. Under FF 2.0, the county will join with the Urban League of Rochester, PathStone Foundation, and the Ibero-American Action League to make the program more accessible and provide comprehensive application help and support.
The initial Fast Forward program, launched in October 2020, helped well over 1,500 local small businesses survive the pandemic with $22 million of funds from the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Fast Forward 2.0 is funded with an additional $20 million in CARES Act money, which must be distributed by the end of this year. In addition to offering businesses more personalized help with completing their applications via the partnership with Urban League, Ibero and PathStone, the Monroe County Department of Planning and Development has added nine temporary workers in order to make the approval process faster.
Eligible businesses can receive grants of either $10,000, $15,000, or $20,000 depending on the number of full-time employees. The money can be used for rent, payroll, operating expenditures, or COVID-related business expenses and other funding shortfalls.
Businesses that did not receive funding in the first version of the program will be given priority under Fast Forward 2.0. To apply, visit www.monroecounty.gov/fastforwardmonroe.
Paycheck Protection Program (PPP)
The initial Paycheck Protection Program (PPP) was designed to provide a direct incentive for small businesses to keep their workers on the payroll. Funding for the initial PPP program closed on Aug. 8, 2020. Legislation authorizing a Second Draw of the PPP program was signed by President Trump on Dec. 27, 2020.
UPDATE: GRB is no longer accepting new applications for PPP loans. For those who have loans or forgiveness application in process, please contact your GRB Relationship Manager with questions.
Tax Deductibility of PPP Expenses
The bill also specifies that business expenses paid with forgiven PPP loans are tax-deductible. This supersedes IRS guidance to the contrary. This means that businesses that have had or will have PPP loans forgiven will NOT have to pay income tax on that forgiveness. There may be, however, some state tax implications.
SBA 7a Term Loan and Line of Credit Payments
The U.S. Small Business Administration will again start making a limited number of payments for borrowers with 7a Loans and Lines of Credit meeting the specific criteria below. The payment schedule and guidelines are based on the date the borrower’s loan was approved.
In addition, there is a $9,000 limit each month. Payments may be made for 3 or 8 months based on the business NAICS code. This is not applicable to Paycheck Protection Program (PPP) loans. Qualifying loan payments from the SBA will begin with payments due in February.
SBA Payments are capped at $9,000/month
- The difference will remain the borrower’s responsibility.
Loans with SBA approval before 3/27/20
- SBA will provide 3 payments starting with February statements.
- If a borrower is still receiving round 1 payments, round 2 payments will start immediately following.
- Loans with certain NAICS codes will receive an additional 5 payments. Please contact your Relationship Manager for specific details.
Loans with SBA approval between 3/27/20 – 9/27/20
- May receive payments if the SBA determines there are sufficient funds in the program to do so.
- If a borrower has received round 1 payments on a loan, they cannot receive payments on another loan approved after 2/1/21 (does not apply to affiliates).
Loans with SBA approval between 9/28/20 – 1/31/21
- Are not eligible to receive payments at this time.
Loans with SBA approval between 2/1/21 – 9/30/21
- Will receive 6 payments.
Payments made less frequently than monthly
- Payments will be calculated based on the annual payments amount divided by 12.