Dear IFEA Friends,
As promised, we wanted to keep you updated on the new COVID-19 Relief Bill; Specifically, with regard to the reopening of the Paycheck Protection Program (PPP) that many of you are waiting to access. While there are still a number of questions to be clarified by your local lenders, we are copying below a release from the SBA (U.S. Small Business Administration), who is responsible for overseeing the program. We are also linking you to brief documents that will provide you with an Overview of First Draw PPP information and an Overview of Second Draw PPP information.
Importantly, we want to make you aware that those applying for a First Draw PPP (now including 501(c)6 and Destination Marketing organizations) will be able to do so starting on Monday, January 11th, specifically through community-based financial institution lenders. Those applying for a Second Draw PPP will be able to do so beginning on Wednesday, January 13th, also specifically through community-based financial institutions. This is being done in an attempt to ensure that those small businesses who need this relief more than anyone, are able to get in early. And while the program will be available for application until March 31st, the experts that we have talked with believe that the monies may only last for 2 ½ to 3 weeks, so it is important to apply as early as possible.
If you are applying for less than $150,000, our understanding is that the application (and forgiveness) process should be fairly easy and simplified, but you will want to talk with your local lender to ensure that you understand their requirements.
We will continue to keep you updated as we have more information that may be helpful.
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SBA and Treasury Announce
PPP Re-Opening; Issue New Guidance
January 8, 2021 | Release Number 21-02
WASHINGTON – The U.S. Small Business Administration (SBA), in consultation with the Treasury Department, announced today that the Paycheck Protection Program (PPP) will re-open the week of January 11 for new borrowers and certain existing PPP borrowers. To promote access to capital, initially only community financial institutions will be able to make First Draw PPP Loans on Monday, January 11, and Second Draw PPP Loans on Wednesday, January 13. The PPP will open to all participating lenders shortly thereafter. Updated PPP guidance outlining Program changes to enhance its effectiveness and accessibility was released on January 6 in accordance with the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act.
This round of the PPP continues to prioritize millions of Americans employed by small businesses by authorizing up to $284 billion toward job retention and certain other expenses through March 31, 2021, and by allowing certain existing PPP borrowers to apply for a Second Draw PPP Loan.
“The historically successful Paycheck Protection Program served as an economic lifeline to millions of small businesses and their employees when they needed it most,” said Administrator Jovita Carranza. “Today’s guidance builds on the success of the program and adapts to the changing needs of small business owners by providing targeted relief and a simpler forgiveness process to ensure their path to recovery.”
“The Paycheck Protection Program has successfully provided 5.2 million loans worth $525 billion to America’s small businesses, supporting more than 51 million jobs,” said Treasury Secretary Steven T. Mnuchin. “This updated guidance enhances the PPP’s targeted relief to small businesses most impacted by COVID-19. We are committed to implementing this round of PPP quickly to continue supporting American small businesses and their workers.”
Key PPP updates include:
- PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs;
- PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
- The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, destination marketing organizations, among other types of organizations;
- The PPP provides greater flexibility for seasonal employees;
- Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; and
- Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.
A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
- Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
- Has no more than 300 employees; and
- Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
The new guidance released includes:
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About the IFEA:
The International Festivals & Events Association (IFEA) is The Premier Association Supporting and Enabling Festival & Event Professionals Worldwide. With a target audience that includes all those who produce and support quality celebrations for the benefit of their respective "communities," the IFEA's primary focus is identifying and providing access to the professional resources and networks that will inspire and enable those in our industry to realize their dreams, build community and sustain success through celebration. Membership in the IFEA provides value from all directions, including invaluable contacts and cash budget savings worth many times the membership investment. The more you use them, the higher your return.
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Thank You to Our Association Endorsed Partners:
The IFEA would like to thank the following partners for their dedicated support of the association. Association Endorsed Partners have made a commitment to the continued success of our association, our members, and our industry through their umbrella sponsorship support of all IFEA programs and services. Show your support for these dedicated providers to our industry by getting to know them, and the high-quality products and services that they supply, better.
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International Festivals & Events Association
2603 W. Eastover Terrace - Boise, ID - 83706 USA
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