If you’ve been planning on applying for a second round PPP loan, you may have been disappointed with the news that the funds recently ran out, just before the original May 31 expiration date. Although these funds have all been exhausted, the SBA has several other covid-era loans and grants available to struggling businesses. Here’s what you need to know. 

How will PPP loans be handled now?

From now on, the SBA will only accept PPP applicants that are community financial institutions. About $8 billion was allocated to these groups (which usually serve minority borrowers). Although the SBA will discontinue the process of receiving new applicants outside of these community financial institutions, it will continue to process previously approved PPP applications. 

Now what? 

If you’re a small business owner who did not apply for existing PPP funds, there are still other relief programs available through the SBA. A few of these also give grants to businesses. 

Restaurant Revitalization Fund

On Monday, May 10, the SBA started dispersing funds to applicants for the Restaurant Revitalization Fund. This program provides funding to help restaurants as they begin operating again by paying the businesses any funds they lost during the pandemic, up to $10 million per business and no more than $5 million per physical location. As long as funds are used for pre-approved expenses, recipients are not required to repay the amount. Also note that in the first 3 weeks of the application period, the SBA will prioritize applications from women, veterans, or socially and economically disadvantaged people. 

Although there is talk that the funding won’t be sufficient to help all the businesses that need support, it is still a great opportunity for restaurants to get ahead. There have already been a substantial volume of applicants, so don’t delay the application process if you’re in the approved demographics. 

Shuttered Venue Operators Grant Program (SVOG)

The SBA also reopened applications for the Shuttered Venue Operators Grant Program, which offers a total of $16 billion for theaters, live venue operators, and other performance-based operations that were forced to shut down during the pandemic. These applications will be approved in waves, with businesses that experienced the highest amount of loss being given priority. 

GoFundMe Small Business Relief Fund

The government isn’t the only entity giving out free money. GoFundMe is providing micro-grants to small businesses that raise $500 of their own money through the company’s platform. In return, they promise to match the $500 contribution. As long as you can verify that your business has been negatively affected by the pandemic, you’re in good shape. Head to GoFundMe’s grant description page to learn how to get started. 

LISC’s Small Business Relief Grant

LISC is offering grants ranging from $5,000-20,000 for rural businesses (pop. of 50,000 or less) to use on operational costs, payroll, and vendor debt. This grant emphasizes underserved communities, but anyone meeting the criteria is welcome to apply. The LISC website explains how to apply. 

For everyone else

If your business doesn’t fit neatly into one of the categories above, there are still options for you. Although most government funded loans and grants have recently expired, many private parties offer similar incentives for struggling businesses. Head over to the SBA’s website to explore more options for your situation. 

Our advice

Managing finances the last year hasn’t been easy for any company. Nimbl’s CFO services offer a comprehensive look at the financial health of your business, helping you cut tax dollars and prepare for future expenditures through careful planning. Contact us today if you are looking for an extra boost of insight as you navigate these difficult months.