On December 21, Congress passed a relief package with legislation that includes significant benefits for small businesses. The bill has been sent to be signed by the President. At Formula Marketing we are working to bring these programs to you as quickly as possible and will update you in the coming weeks with more information and next steps.
Paycheck Protection Program expansion
The legislation authorizes a new round of Paycheck Protection Program (PPP) funding. Approximately $285 billion has been set aside for additional lending, including the ability for eligible businesses to request a second round of funding through the program. Restaurant’s, bars and hospitality PPP enrollment in San Diego, CA is set to open on 1/11/2021
Second PPP loans will be available to businesses who have used the full amount of their first PPP loan, have fewer than 300 employees and who can demonstrate at least a 25% reduction in gross receipts in any quarter in 2020 when compared against certain past quarterly results. The legislation caps second loans at $2 million.
Most banks plans to offer both first and second PPP loans under the new rules. We will communicate further eligibility requirements, the application process, and how to begin preparing, once we receive guidance from the SBA.
Furthermore, the new legislation includes streamlined forgiveness for loans of $150,000 or less and expansion of eligible covered expenses.. For those with PPP loans through Formula Marketing , please see your email for additional information.
Additional relief for small businesses
In addition to PPP, the legislation provides $20 billion to restart and extend the SBA’s Economic Injury Disaster Loan (EIDL) Advance Grants, funds for eligible theaters, museums and zoos, and additional debt relief for eligible small business loans guaranteed by the SBA under 7(a), 504 and Microloan programs. Improvements to those SBA loan programs, such as waived fees, are also part of the legislation.
Where can I go for more information?
As we get additional clarification on the program from the SBA, we will continue to communicate via email and update sba.gov. In the meantime, please contact your accountant or legal counsel for more information about your specific situation.
Formula Marketing is the leading marketing agency for the hospitality, restaurants and bars in San Diego. We have a team of restaurants marketing experts that consultant the clients with their marketing needs and beyond in San Diego. Restaurant marketing in San Diego and among many other cities across the country has been challenging. Pivoting is a key to reach your business’s full potential. Ordering online and making this process seamless for the guest is one way of pivoting during Covid-19.
Call or text us today at 619-995-8333 to speak to one of our marketing team members.