This story was updated January 9, 2021
Congress has passed, and the President has signed, the stimulus bill which includes a new round of Paycheck Protection Program (PPP) loans, EIDL grants and other assistance to help small business owners and independent contractors.
There is $284 billion in forgivable PPP loan funds available, both for some businesses that already got PPP loans as well as others that missed out in round one. It will include expanded PPP eligibility for 501(c)(6) nonprofits, including destination marketing organizations, and local newspapers, TV and radio broadcasters.
The SBA begins accepting PPP loan applications starting January 11, 2021.
Read: New Paycheck Protection Program (PPP) Loans: How to Qualify and Apply
Grants (advances) under the Economic Injury Disaster loan program (EIDL grants) will open again with $40 billion included for new emergency EIDL Grants for, including targeted grants for businesses in low-income communities.
Read: New $10,000 Emergency EIDL Grants: Do You Qualify?
Small businesses will continue to benefit from SBA debt relief payments with $3.5 billion set aside for that assistance. Another $2 billion is included for enhancements to SBA lending.
There will also be $15 billion in dedicated funding for live venues, independent movie theaters, and cultural institutions.
Funding for Community Development Institutions and Minority Development Institutions ($12 billion) will help those organizations help minority and low-income small business owners through a new Neighborhood Capital Investment program.
Pandemic Unemployment for Self-Employed and Independent Contractors
Many independent contractors and self employed individuals received help through Pandemic Unemployment programs. This legislation continues certain benefits and enhances others.
The bill adds an additional $300 per week for all workers receiving unemployment benefits, through March 14, 2021. (That weekly benefit is half the additional $600 in the CARES Act.)
This bill also extends the Pandemic Unemployment Assistance (PUA) program, with expanded coverage to the self-employed, gig workers, and others in nontraditional employment, and the Pandemic Emergency Unemployment Compensation (PEUC) program, which provides additional weeks of federally-funded unemployment benefits to individuals who exhaust their regular state benefits.
Additionally, the bill increases the maximum number of weeks an individual may claim benefits through regular state unemployment plus the PEUC program, or through the PUA program, to 50 weeks. The bill also provides an extra benefit of $100 per week for certain workers who have both wage and self-employment income but whose base UI benefit calculation doesn’t take their self-employment into account.
What happens next?
Now that this legislation has become law, the SBA Administrator must issue regulations so that small business owners can apply for the new PPP loans and emergency EIDL grants.
- Nav will match borrowers to lending partners making PPP loans. Sign up for a free Nav account to be alerted as soon as these loans are available.
- Follow and discuss updates in the Facebook group: Business Loan Insight Financing Hub – PPP, EIDL and More on Facebook.)
This article was originally written on December 20, 2020 and updated on January 9, 2021.
Need help paying bills rent education
I am here for advise on how to apply for funding and get my application ready and not miss out techinically when opportunity avails ….also would like to get my credit report improved
You can apply now. We’ve updated our article about PPP. If you still have questions our customer support team will do their best to answer them.
Robin – Are you talking about paying personal bills? PPP is designed for small businesses.
Hi Gerri! Thanks for some great articles on Nav! As a startup company that started right before Covid, can you point me in the right direction as far as getting approved for the PPP?
I did not apply for the first round, but I desperately need money from the second round.
I could easily spend it in 8 weeks, so I would probably be approved for the forgiveness if offered.
When did your business start exactly? Did you have revenues for any of the periods in the article? You are approved based on payroll, or if self-employed it will be Schedule C net profit (line 31 of your Schedule C).
Hi there, found your page very helpful, however, I have a question. Is the EIDL advance and PPL the same pool of funds? Can you apply for both? Can you be approved for both? Also, I am sole proprietorship and was approved for EIDL Loan for a small sum, not sure if I should accept since I would like to take advantage of the grant.
You may apply for both if you qualify Amanda. Congress has appropriated separate pots of money for each program. It’s not taking advantage if you apply for both – that’s how Congress designed it!
First of all, thank you for all this quality information.
Would you please explain what you mean by, “Funding for Community Development Institutions and Minority Development Institutions ($12 billion) will help those organizations help minority and low-income small business owners through a new Neighborhood Capital Investment program”? My company does not qualify for either the EIDL or PPP, but it and I need help. I’ve heard a lot of people say that now is the best time to start a business, but that seems very untrue. There are so many institutions and people talking about supporting Black people, but it seems that the only support for Black businesses is for those that existed before COVID-19. If you know of any resources for new Black owned or led businesses or LGBTQI owned or led businesses, please make an article about them or send them to us.
Hi Ryan – I don’t know much about that program yet. It appears to be new and I haven’t had time to research or write about it yet. However, CDFIs and MDIs are already around and will no doubt be sharing information soon. I hope to be able to write about it soon.
You are right that much of the COVID-19 relief assistance has been for existing businesses– not for startups. I would recommend a couple of things:
1. Connect with your local SBA resource partners like SCORE and SBDCs. They are often very attuned to local resources and may be able to share more information about these programs. Their services are free. They can also provide free help and resources for starting your business.
2. Find your local CDFIs and check with them. This article talks about CDFIs and how to locate ones in your area.
I was wondering if I could apply for a grant
Hi Sandra – You’ll want to read my updated article about emergency EIDL grants here.
I apply for the EIDL GRANT in November, and was turn down. Since 2017 when I had my little small one person business selling fruit, vegetables, and giving people rides in downtown Nashville,and doing other odd jobs.In late 2018, I’ve been to the downtown clinic,cause I couldn’t paid for insurance,and I’ve been hospitalized 3 or 4 times,and the second time I was in the hospital, I got out and that’s when the coronavirus hit,I had a good job,but laid off, cause of the coronavirus, so I felt lost and didn’t know what I was going to do,just lost my life partner (wife) a few years back,the only family I had left on earth was my better half. With no job I was pawning my property at pawn shop and whoever else wanted what, and some of the things I was selling for almost nothing,I would have to save months,or layaway things,and was gone like it wasn’t nothing,but treasure to me ,just to live from bill to bill,so not knowing at the time, cause I wasn’t watching the news are updates of what was happening,I was worrying about get by,so I believe one day at a store I overheard some people talking about that unemployment wasn’t to hard to receive so I apply for unemployment,so I was approved I was believing everything was looking up, so when I started getting it after almost 2 months after I apply,I was at that time homeless, jobless,and no where to go,the only property I had left was my car,had to end up pawning it off. So I stay wherever I could then l was so grateful of my unemployment coming,I could eat and get hygiene stuff ,so I was feeling human,it felt nice setting at a restaurant and things feeling ok again.So the Grant I apply for the EIDL program I was so excited,I’m planning on getting a home,get a car,and a job,I was going to feel normal again, going to be a MAN again.i had all my living plans in order.what I was going to need first feeling of life was looking up,just I was always told anything in life is to remember and do your part,so I’ve been doing that for years and was working ok,so by believing in my big brother,(government) so I didn’t worry much anymore,so I’m been paying taxes all my life, what could go wrong, My growing up I was told again,if you do your part the rest will be ok, so I read the letter again about being turned down, cause the first time I read it. I really didn’t read it all, cause of the heart broke and crying, so now nothing again I wasn’t going to get ahead,very very disappointed in the people I have help all my life are really now not going to be there when I really needed a boost in my life,so when I read it the second. I was even more disappointed,and in disbelief. I WAS NOT GRANTED A EIDL GRANT, because of bad credit score, mostly the bad credit score was hospital bills,and medical bills, cause I couldn’t afford insurance. I just don’t understand why when people do good and bad things happen in there life why can’t these people get some help.I’ve been praying about it,and I believe and Love my JESUS CHRIST, so with so much Love and Faith in HIM, it’s all to be ok,I’m putting in his hands like he said,and he will take of ME. So they can’t make me cry or hurt anymore, I SMILE AND TELL OTHER PEOPLE AROUND ME, It’s going to be ok,some look at me,like I’m crazy,but if we all let our GOD lead. We would all be nicer,kind, loving,and understanding to one another. God Bless And Have A Great Day..
Hi Watson – You sound like you have an amazing attitude! Hopefully you will qualify for the full $10,000 EIDL grant even though you were turned down. I have updated our EIDL grant article with more information here. Be sure to check into PPP as well.
Please let me know about EIDL
Letha – I have written an article about EIDL and updated it this morning. You can read it here.
Please keep me informed.
Thanks
Mattie
Absolutely! And the best way to ensure you get information when the new loans open up is to make sure you have a free Nav account. We’ll alert our customers when it’s time to apply and match you to lending partners.
Hi I am Uber driver, can I apply for EIDL grant? Do I need to repay it after some time?
Thanks
Hi Solomon – we have written a new article about the new EIDL grants. We are awaiting more information from the SBA on how to apply.
Hello I am a small business owner and our restaurant has been in business for 29 years and I am very grateful for this help during these very tough times recently I was thinking to close the doors for good we are just not making it which would be devastating being that I just had twins and we have a 3 1/2 year old I want to thank you for this program so we can get back afloat and pray and hope better things are to come
Amedeo – I hope this new program will help you! Be sure to sign up for a free Nav account so we can alert you when the application process has begun again.
I’m looking forward to working with Nav.
Hi Gerri,
My reading is that the EIDL will only be offered to businesses and NP’s that hadn’t received one previously. Are you seeing the same?
Dennis – I thought so on initial reading, but after reading it again I don’t think that’s the case. It amends the covered period to December 31, 2021 so I think that it will include new applications. I don’t believe they will be prioritized but if funding is available I think they will be covered. I’ll update our new EIDL article when I learn more.
Hello Please help me I applied for EIDL and I got some money back when the pandemic first started do I have to reapply again I’m a self-employed amazon flex
Bilal – We are awaiting further instruction from the SBA. We’ll update our article about new EIDL grants when we hear more. You may qualify for the new PPP loans which are forgivable so don’t rule those out!
LSG Ministries is a 501 3C nonprofit organization where we’ve been hit hard with the Covent all of the large stores that used to donate to our food pantry has not been able to donate since March due to the fact that they can’t keep items on the floor second all of our big food pantries that used to donate cannot donate due to the fact that they have additional clientele we have then hit by our monetary donors that has lost their jobs we have 12 to 15 calls a day about helping with electric bills water bills rent assistance and more our housing program is shut down right now because we do not have any funds available our food program has barely minimum to give to our families because we don’t have it to give we are looking for a financial blessing to help us we have wrote to all the officials around this area to let them know that we have a lot of problems on supplying and helping the families that are in need at this time and we have no response not any and we’re needing help now.