SBA prioritizes smaller businesses for two week window
NASHVILLE, Tennessee (WTVF) – In a recent announcement, President Biden said businesses with fewer than 20 employees and sole proprietorships would be prioritized for loans from the SBA’s Paycheck Protection Program.
“As far as the in-store sales go, it’s been really tough,” said Kori Waldrup, owner of the Zelda store in Green Hills.
Despite the help of online sales, the business just hasn’t been the same. “But when it comes to foot traffic and people obscuring the door, I would probably say half of what it was in the past,” she said.
That’s why she recently applied for and got a second loan from the Small Business Administration’s Paycheck Protection Program.
“This winter has been so slow, you know, and all the numbers were up – nobody wanted to go out, and so it kind of happened at a perfect time,” Waldrup said.
Now the SBA is to give the priority small businesses like Waldrup’s.
“On February 24, President Biden announced a 14-day window where small businesses with fewer than 20 employees are the only applications the SBA will accept from lenders and process, and that is to reach the smallest of small businesses,” he said. said Tennessee State Director for the Small Business Administration, LaTanya Channel.
That means until 5:00 p.m. EST on March 9, these small businesses will be at the top of the list for nominations, but that’s not the only big change.
“Before February 24, these very small businesses that used Schedule C – these independent contractors, again your beauticians and barbers – they were limited to only using their bottom line which was line 31 of Schedule C Now they can use the gross, so they’re now eligible for a larger loan amount, ”Channel said.
She adds that a common misconception is that loans can only be used for payroll, but they can also be used for expenses such as rent and PPE equipment.
Channel said: “A lot of people think that because they don’t have employees they don’t qualify – that’s not true. If you are a single member LLC, if you only get 1099, if it’s just you, you are eligible for a PPP loan.
For owners like Waldrup, the opportunity is a lifeline. “I think there is no downside,” she said.
After March 9, the SBA will resume evaluating PPP loan applications from all companies, but the deadline to apply will end at 5:00 p.m. EST on March 31.
Every Monday at 11:00 a.m. Central, the Tennessee District Office of the Small Business Administration offers an informative PPP webinar. You can read more about it here.