Greater Williamsburg Business Council talks Economic Aid Act. Here’s how it can help your business survive

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The Greater Williamsburg Council hosted a webinar to help small business owners find financial relief options during the coronavirus pandemic. (WYDaily/Courtesy of Unsplash)
The Greater Williamsburg Council hosted a webinar to help small business owners find financial relief options during the coronavirus pandemic. (WYDaily/Courtesy of Unsplash)

Last week, the Greater Williamsburg Business Council hosted a webinar to discuss the economic aid act and how small business owners can utilize other aid opportunities during the coronavirus pandemic.

The webinar was in partnership with James City County Economic Development, York County Economic Development, City of Williamsburg Economic Development, the Greater Williamsburg Partnership, and the William & Mary Office of Economic Development and Business Innovation.

Jim Carroll, executive director of the Small Business Development Center of Hampton Roads, Inc. gave a 20 minute presentation on the second round of Paycheck Protection Program funding and other economic aid opportunities available to businesses in the Greater Williamsburg area.

The Economic Aid Act, as Carroll called it, is part of the Consolidated Appropriations Act, 2021. It includes additional economic relief programs signed into law on Dec. 27 last year and will “sunset” on March 31 of this year, according to Carroll.

This Act provides benefits for small business owners, including re-establishing the PPP program, as well as the creation of a second round of PPP funding for eligible businesses.

“My biggest concern with this act is that it sunsets on March 31 — so you have two months,” Carroll said during his presentation. “The one thing I do tell everyone, and I caution them, is that this is still an ongoing performance, for lack of a better word.”

“There are still some serious unanswered questions we still need to address, and the SBDC is coming out with changes in proceeds for first draw people,” he added.

The maximum amount for loans available to “First Draw” borrowers is $10 million and the
maximum single-location number of employees remains at 500.

For “Second Draw” borrowers, or those who have used a PPE loan before, applicants cannot have more than 300 employees in a single location.

They also must have experienced a 25% or greater reduction in gross revenues between 2019 and the same period in 2020, and they must have either used all their first PPP or will use all first PPP loan before the second loan is disbursed.

Before applying for the loan, Carroll advises business owners to do six things; determine their eligibility, run their business numbers, revisit their PPP forgiveness application, recalculate business expense deductions, review both borrow and lender loan applications, and call their lender.

To watch the full webinar, along with past webinars, visit the Greater Williamsburg Business Council’s website here.

Any small business owners in the area with questions about applying for PPE loans and such can visit the SBDC of Hampton Roads website here.

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