COVID-19 Relief and Support
“An SBA loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis.”
*Update on January 12, 2021*
With the passage of the recent federal stimulus package, the Small Business Administration (SBA) will resume the popular Paycheck Protection Program. The program, which administers forgivable loans to impacted entities will now run through March 31, 2021. Lending will restart on January 11 with small community financial institutions and then reopening to larger financial institutions soon afterward.
Small businesses can once again obtain forgivable funds designed to sustain payroll costs. Additionally, the stimulus package has created a Second Draw program for select smaller businesses most economically impacted by the pandemic. ABA recommends you reach out to your trusted financial institution to explore options or a trusted ABA staff member.
***ABA Recommends you reach out to the lender you used for your PPP loan in regards to applying for forgiveness***
While “small” businesses are generally defined as those enterprises with 500 or fewer employees, baking industry enterprises may still qualify if they employ more than 500 employees. SBA utilizes NAICS codes to identify what qualifies as a small business, below are a few relevant thresholds to bakeries:
“This loan will provide economic relief to small businesses and non-profit organizations that are currently experiencing a temporary loss of revenue.”
All 50 states and Washington, DC have been declared “disaster zones,” making your business eligible for this funding program. Loans can be up to $2 million with a forgivable $10,000 advance.
“The Federal Reserve established the Main Street Lending Program (Program) to support lending to small and medium-sized businesses and nonprofit organizations that were in sound financial condition before the onset of the COVID-19 pandemic.”
The Main Street Lending Program will enhance support for small and mid-sized businesses that were in good financial standing before the crisis by offering 4-year loans to companies employing up to 10,000 workers or with revenues of less than $2.5 billion. Principal and interest payments will be deferred for one year. Firms that have taken advantage of the PPP may also take out Main Street loans.