Small Businesses

Our highest priority is keeping Arizonans healthy, safe, and economically secure.

Arizonans: the fastest way to get assistance or info. from our office is to email casework@sinema.senate.gov.

---

SMALL BUSINESS

We understand this has been a very disruptive time for Arizona businesses of all sizes. We are working quickly to provide support for businesses impacted by the COVID-19 outbreak. The Small Business Administration is making Disaster Loan Assistance available to Arizona businesses. This assistance will provide low-interest, long-term loans to businesses, private non-profit organizations, and property owners to help them recover.

American Rescue Plan Act

The American Rescue Plan Act (ARPA) of 2021 was signed by President Biden on Thursday, March 11, 2021. This legislation contains new opportunities and avenues for aid including:

• Relief for local restaurants. Creates a new program to provide direct economic support to restaurants to help them keep their doors open. We will update this page when more information on eligibility and how to apply becomes available from SBA.
• Access to the PPP Second Draw for businesses eligible for the Shuttered Venue Operator Grant (SVOG). In response to delays in opening the SVOG, the new law ensures that a business will not be barred from participating in the SVOG just because they got a Second Draw loan. Instead, the amount of the Second Draw loan will be deducted from the total amount of the SVOG award.
• Additional access to the PPP. Under the ARPA, any non-profit organized under Section 501(c) of the Internal Revenue Code of 1986 is now eligible for a PPP loan, though some restrictions apply.
• Additional EIDL funding for certain businesses. Businesses that have suffered an economic loss of greater than 50 percent and have 10 or fewer employees, and are eligible under the rules of the Economic Aid to Hard-Hit Businesses Act, are now eligible for an additional $5,000 advance.

ECONOMIC INJURY DISASTER LOANS (EIDL)

Targeted EIDL Advances for Certain Businesses

The Targeted EIDL Advance provides businesses located in low-income communities with additional funds to ensure small business continuity, adaptation, and resiliency. Advance funds of up to $10,000 will be available to eligible applicants who previously received an EIDL Advance for less than $10,000, or those who applied but received no funds due to lack of program funds. To learn more, click HERE.

Note: Applicants are not required to take any action. Eligible recipients will be contacted directly by the SBA.

EIDL Loan Program

• The Small Business Administration has made low-interest federal disaster loans for working capital available to small businesses suffering substantial economic injury as a result of the Coronavirus.
• Small Businesses with 500 or fewer employees, sole proprietorships, independent contractors, cooperatives and employee owned businesses, tribal small businesses, and 501(c), (d), or (e) non-profits are eligible to apply.
• Economic Injury Disaster Loans (EIDL) offer up to $2 million in assistance to help overcome temporary loss of revenue. The interest rate is 3.75% for small businesses.  The interest rate for non-profits is 2.75%. SBA offers loans with long term repayments, up to a maximum of 30 years. Terms are determined on a case-by-case basis.
• Loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact.
• To apply for an EIDL loan click HERE.

PAYCHECK PROTECTION PROGRAM (PPP)

The PPP is now closed. If this program is reauthorized this webpage will be updated.​​​​​​​

Forgiveness

Borrowers are eligible to submit a loan forgiveness application any time before the maturity date of the loan.

If your business received a PPP loan, you have 10 months from the end of your 8 or 24 week covered period to submit your forgiveness application and avoid making payments before your forgiveness amount is remitted to the lender by the Small Business Administration. 

If you do not apply for loan forgiveness within 10 months, loan payments are no longer deferred and you must begin making payments.

How to Apply for Forgiveness

Contact your lender. They will provide you with the correct application depending on your type of business and the principal loan amount (SBA Form 3508,SBA Form 3508EZ, SBA Form 3508S, or a lender equivalent).

The 3508EZ and the 3508S are shortened versions of the application for borrowers who meet specific requirements. Your lender can provide further guidance on how to submit the application.

Guidance from the Small Business Administration regarding loan forgiveness can be found HERE.

PPP First Draw

The PPP is designed to provide a direct incentive for small businesses to keep their workers on payroll. First Draw PPP loans can be used for payroll, and certain covered costs such as mortgage interest, rent, utility payments, worker protection investments (related to stopping the spread of COVID-19) and certain supplier costs. The maximum loan amount of a First Draw loan is $10 million.

For information regarding eligibility and program rules, click HERE.

PPP Second Draw

As part of the Economic Aid to Hard-Hit Businesses Act, the Congress expanded the PPP to allow certain businesses to receive a second PPP loan. Under the Second Draw, eligibility is more restrictive than what is required for a First Draw loan. For more information on eligibility and to apply, click HERE.

Schedule C Filers

Recognizing that business owners filing a Schedule C were placed at a disadvantage, the Small Business Administration (SBA) has updated the treatment of these small businesses to provide additional relief. Under this update, these borrowers can consider utilize their gross income when determining their maximum loan amount.  

To read more about this change click HERE.

To apply for a PPP First Draw Loan as a Schedule C filer, click HERE. To apply for a PPP Second Draw Lown as a Schedule C filer, click HERE.

Applying for a Loan Increase

The PPP has changed a lot since April 2020. That is a good thing. We have expanded coverage and worked to make sure businesses have the support they need. Unfortunately, this means that some borrowers are eligible for more money than they received. If this happened to you, there may be an opportunity to apply for a loan increase. For more information click HERE.

SHUTTERED VENUE OPERATORS GRANT

The Shuttered Venue Operators Grant is now open. To check your priority in processing click HERE.

Recognizing that our performance and cultural venues have been closed to stop the spread of COVID-19, Congress created the Shuttered Venues Operators Grant (SVOG) to provide relief for these businesses that have suffered enormous economic harm over the last year. 

Under this program, eligible businesses may qualify for a grant equal to 45 percent of their gross earned revenue, wth a maximum grant amount of $10 million.  For more information on the SVOG and to check eligibility, click HERE.

How to Prepare

The SBA recommends that you compile your necessary documentation now. That way you are ready when the portal opens. To review the SBA’s Application Checklist, click HERE.

You will need to supply a DUNS number and register for the System for Award Management (SAM). To sign up, just click HERE.

In preparation for the launch of the SVOG, the SBA hosted a webinar to explain the program and the application process to eligible entities. To watch a recording of this webinar, click HERE.

DEBT RELIEF THROUGH THE SMALL BUSINESS ADMINISTRATION

• To help businesses during this time, the Small Business Administration is automatically paying the principal, interest and fees for current 7(a), 504, and microloans until September 27, 2020.  Additionally, SBA will automatically pay the principal, interest, and fees of new 7(a), 504, and microloans issued prior to September 27, 2020.
• For current SBA serviced Disaster Loans: If your disaster loan was in “regular servicing” status on March 1, 2020, the SBA is providing automatic deferments through December 31, 2020.  If you have questions about your current loan, you can contact your Loan servicing office at (800) 487-6019 or ElPasoDLSC@sba.gov.

TRADITIONAL SBA LOANS

If you believe that an Economic Injury Disaster Loan does not match your needs, the Small Business Administration is ready to help you find the right lender. The SBA sets guidelines for its partnering lenders, community development organizations, and micro-lending institutions. Click HERE to find a lender who is right for you.

Not Sure What You Need?

It is okay to feel overwhelmed. The SBA is ready to help. To access the SBA’s network of local partners who counsel, mentor, and train small business click HERE.

GUIDANCE FOR BUSINESSES AND EMPLOYERS

For those small businesses continuing to operate, it is important that you keep yourself, your employees, and your customers safe.  The Centers for Disease Control and Prevention (CDC) offers the most up-to-date information: CDC Interim Guidance for Businesses and Employers to Plan and Respond to Coronavirus. 

If you, one of your family members, one of your employees or one of their family members is sick, it is important that you are prepared to conduct a risk assessment to gauge potential exposures to others: CDC Guidelines for Managing and Conducting a Risk Assessment.

For employers experiencing a slowdown in their businesses as a result of the coronavirus 

Your employees may be able to apply for the Arizona Shared Work Program. Employers can divide the available work or hours among a group of eligible employees rather than laying off workers, and employees can receive a portion of their UI benefits while working reduced hours. Employee eligibility will be determined by the Arizona Department of Economic Security.

Stigma

It is unfortunate, but as a result of the coronavirus, there have been incidents of stigma and bias against people of Asian descent, those who have traveled, and emergency responders or healthcare professionals.  As a business owner, it is important to protect yourself, your employees, and your customers against stigma and bias. Stopping stigma is important to making your community resilient: CDC Recommendations on Reducing Stigma.

---

Federal coronavirus-response legislation: click HERE.

Specific actions Kyrsten is taking on behalf of Arizona: click HERE.

Visit our main resources page: sinema.senate.gov/corona.