Congress Passes Covid Relief Act

Stimulus Package II

California Small Business COVID-19 Relief Grant

Round 3 (waitlisted from Rounds 1 and 2): March 5th - March 11th, 2021

Round 4 (nonprofit cultural institutions only): March 16th - March 23rd, 2021

Round 5: March 25th - March 31st, 2021

Round 6: April 28th - May 4th, 2021

AmPac Business Capital has partnered with Grant Administrator, Lendistry to provide grants to California Small Businesses up to $25,000 to support COVID-19 relief to keep the CA economy moving.

California Small Business COVID-19 Relief Grant

Round 3 (waitlisted from Rounds 1 and 2)

Friday, March 5th through Thursday, March 11th, 2021

Eligible applicants: This is a closed round and only available to eligible applicants who were waitlisted in Rounds 1 and 2 – only existing applicants will be selected. If you were waitlisted, you do not need to reapply. New applications will not be accepted in this round.

Eligible grant award: $5,000 to $25,000

Details: This is a closed funding round; no new applications will be accepted

Round 4 (nonprofit cultural institutions only)

Tuesday, March 16th through Tuesday, March 23rd, 2021

Eligible applicants: Only nonprofit cultural institutions with any revenue size that meet eligibility criteria.

Eligible grant award: $5,000 – $25,000

Details: Eligible nonprofit cultural institutions must complete a new application even if they already applied in Rounds 1 and 2; grants will only be available to nonprofits that did not receive funding in Rounds 1, 2 or 3; grants will be prioritized based on the documented percentage revenue declines based on a reporting period comparing Q2 and Q3 of 2020 versus Q2 and Q3 of 2019

Round 5

Thursday, March 25th through Wednesday, March 31st

Eligible applicants: current waitlisted small businesses and nonprofits not selected in Rounds 1, 2, or 3 and new applicants that meet eligibility criteria.

Eligible grant award: $5,000 – $25,000

Details: Applicants not selected to receive a grant in Rounds 1, 2, & 3 do not need to reapply as they will be automatically moved into Round 5. New applicants will need to apply on this website.

Round 6

Wednesday, April 28th through Tuesday, May 4th

Eligible applicants: current waitlisted small businesses and/or nonprofits not selected in Rounds 1, 2, 3, 4 or 5 and new applicants that meet eligibility criteria.

Eligible grant award: $5,000 – $25,000

Details: Applicants not selected to receive a grant in Rounds 1, 2, 3 & 5 do not need to re-apply and will be automatically moved into Round 6. New applicants will need to apply on this website.

Paycheck Protection Program

  • Creates a second loan from the Paycheck Protection Program, called a “PPP second draw” loan for smaller and harder-hit businesses, with a maximum amount of $2 million.
    • Employ not more than 300 employees
    • Have used or will use the full amount of their first PPP
    • Demonstrate at least a 25 percent reduction in gross receipts in the first, second, or third quarter of 2020 relative to the same 2019 quarter. Provides applicable timelines for businesses that were not in operation in Q1, Q2, Q3, and Q4 of 2019. Applications submitted on or after January 1, 2021, are eligible to utilize the gross receipts from the fourth quarter of 2020.
    • Eligible entities must be businesses, certain non-profit organizations, housing cooperatives, veterans’ organizations, tribal businesses, self-employed individuals, sole proprietors, independent contractors, and small agricultural co-operatives.
    • Ineligible entities include entities listed in 13 C.F.R. 120.110 and subsequent regulations except for entities from that regulation which have otherwise been made eligible by statute or guidance, and except for nonprofits and religious organizations; entities involved in political and lobbying activities including engaging in advocacy in areas such as public policy or political strategy or otherwise describes itself as a think tank in any public document, entities affiliated with entities in the People’s Republic of China; registrants under the Foreign Agents Registration Act; and entities that receive a grant under the Shuttered Venue Operator Grant program.
  • Loan terms. In general, borrowers may receive a loan amount of up to 2.5X the average monthly payroll costs in the one year prior to the loan or the calendar year. No loan can be greater than $2million.
  • Seasonal employers may calculate their maximum loan amount based on a 12-week period beginning February 15, 2019 through February 15, 2020.
  • New entities may receive loans of up to2.5X the sum of their average monthly payroll costs.
  • Entities in industries assigned to NAICS code 72 (Accommodations and Food Services) may receive loans of up to 3.5Xaverage monthly payroll costs.
  • Businesses with multiple locations that are eligible entities under the initial PPP requirements may employ not more than 300 employees per physical location.
  • Waiver of affiliation rules that applied during initial PPP loans apply to a second loan
  • An eligible entity may only receive one PPP second draw loan.
  • Fees are waived for both borrowers and lenders to encourage participation
  • For loans of not more than $150,000, the entity may submit a certification attesting that the entity meets the revenue loss requirements.
  • Loan forgiveness. Borrowers of a PPP second draw loan would be eligible for loan forgiveness equal to the sum of their payroll costs, as well as covered mortgage, rent, and utility payments, covered operations expenditures, covered property damage costs, covered supplier costs, and covered worker protection expenditures incurred during the covered period. The 60/40 cost allocation between payroll and nonpayroll costs in order to receive full forgiveness will continue to apply
  • Allows the borrower to elect a covered period ending at the point of the borrower’s choosing between 8 and 24 weeks after origination.
  • Covered costs extended:
    • Clarifies that other employee-provided group insurance benefits are included in payroll costs. This includes group life, disability, vision, or dental insurance.
    • Payment for any software, cloud computing, and other human resources and accounting needs.
    • Covered property damage costs. Costs related to property damage due to public disturbances that occurred during 2020 that are not covered by insurance.
    • Covered supplier costs. Expenditures to a supplier pursuant to a contract, purchase order, or order for goods in effect prior to taking out the loan that is essential to the recipient’s operations at the time at which the expenditure was made. Supplier costs of perishable goods can be made before or during the life of the loan.
    • Covered worker protection expenditure. Personal protective equipment and adaptive investments to help a loan recipient comply with federal health and safety guidelines or any equivalent State and local guidance related to COVID-19 during the period between March 1, 2020, and the end of the national emergency declaration.

Special Note: A business or organization that was not in operation on February 15, 2020 shall not be eligible for an initial PPP loan and a second draw PPP loan.

Further Clarification - Churches and religious organizations:

Expresses the sense of Congress that the Administrator’s guidance clarifying the eligibility of churches and religious organizations was proper and prohibits the application of regulations otherwise rendering ineligible businesses principally engaged in teaching, instructing, counseling, or indoctrinating religion or religious beliefs.

Timeline and Appropriation:

  • Covered period for PPP Loans through march 31, 2021
  • $806.5 Billion

AmPac Summary of Stimulus Bill and Benefits for Small Businesses

Notice: Certain criteria and offerings may change before they are listed on this website due to emerging and rapidly changing information from government and non-government relief programs. For the latest information, please contact AmPac Business Capital for the most current details.

Congress passed a $900 Billion economic relief package on Monday, December 21, 2020. The bill combines coronavirus-fighting funds with financial relief for individuals and businesses.

The stimulus package restarts the PaycheckProtection Program (PPP) while doing away with the restriction that left more than $100 billion unspent over the summer.

Businesses that are still struggling may be able to get another round of help — but they'll have to meet stricter criteria.

For example, only companies with 300 or fewer employees will be eligible for second loans, down from a limit of 500 in the program's first iteration.

Also, loans will be capped at $2 million instead of the previous limit of $10 million.

The stimulus package also gives the SBA $50million to conduct audits and take other efforts to tackle fraud in the program.

Below summarizes the key provisions.

Do You Have an Existing SBA Loan?

  • Principal and interest payments on your loans beginning February 1, 2021, through April 1, 2021
  • Payments capped at $9,000 per month, per borrower (the borrower will be required to pay the difference for principal and interest payments greater than $9,000 per month)
  • After April 1, 2021, principal and interest payments for the following small business borrowers through September 30, 2021:
    • Small businesses who have received SBA Micro Loans or CommunityAdvantage Loans
    • Small businesses who have received SBA 7a or SBA 504 loans in the hardest-hit industries, including food service and accommodation; arts, entertainment and recreation; education; and laundry and personal care services.
    • Loan payments will be capped at$9,000 per month, per borrower
  • Small businesses with SBA 504 loans may refinance the 1st Trust Deed of the 504 loan and obtain cash out for eligible business expenses
image: business owner of a flower shop

Support for Growing Businesses Obtaining SBA Loans

  • Principal and interest payments, capped at $9,000/month/borrower, for NEW SBA 504 or 7a loans from February 1,2021 –September 30, 2021
  • Small business fees will be waived for SBA 504 and 7a loans immediately after the bill is enacted through September 30, 2021
  • Refinance variable SBA 7a with fixed rate SBA 504 loans, for qualified fixed assets
  • Refinance conventional loans, hard money or seller-carry loans with note in place a minimum of six months vs. two years
    Small business obtaining SBA microloans will have increased terms to 8 years vs 6 years beginning February 1, 2021
  • Extends the guarantee for Community Advantage Loans to a 90% guarantee
  • Expedites loan approval for loans under$500,000 for an Express SBA 504 Loan
  • Increases the maximum loan amount of the express loan from $350,000 to$1,000,00 from January 1, 2021 to September 30, 2021

Impact on Economic Injury Disaster Loan and Advance

  • Provides targeted funding for small businesses in low income communities
  • Provides $10,000 grants to eligible applicants in low-income communities that did not secure grants because funding had run out
  • Extends the EIDL Grants to December 31,2021
  • REPEALS the provision in the CARES Act, which requires PPP borrowers to deduct the amount of their EIDL advance from their PPP forgiveness amount
  • The Administrator shall issue rules thatensure borrowers are made whole if they received forgiveness and their EIDL was
    deducted from that amount.

AmPac Business Capital is Here to Serve You

We're Advocates for Businesses Seeking SBA Lending;
Passionate About Fostering the Success of Business at all Stages of Growth

We care about you and are here to help with any questions you have.  Call us at (909) 915-1706 or click the button below and fill out our contact form.