WASHINGTON - SBA Administrator Isabella Casillas Guzman today announced the U.S. Small Business Administration will begin registrations on Friday, April 30, 2021, at 9 a.m. EDT and open applications on Monday, May 3, 2021, at noon EDT for the Restaurant Revitalization Fund. The online application will remain open to any eligible establishment until all funds are exhausted.
What is the Restaurant Revitalization Fund?
On March 11, 2021 President Joe Biden signed into law the Restaurant Revitalization Fund, established under the American Rescue Plan, provides $28.6 billion in direct relief funds to restaurants and other food establishments that have been impacted and suffered significant losses due to the COVID-19 pandemic.
How much can each restaurant expect to receive?
This program will provide funding equal to the establishment’s pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location. All funds must be used for allowed expenses by March 11, 2023.
What I need to do to apply?
The SBA recommends qualifying applicants familiarize themselves with the application process in advance to ensure a smooth and efficient experience, specifically by:
- Registering for an account in advance at restaurants.sba.gov starting Friday, April 30, 2021, at 9 a.m. EDT.
- Reviewing the official guidance, including program guide, frequently asked questions, and application sample.
- Preparing the required documentation.
- Working with a point-of-sale vendor or visiting restaurants.sba.gov to submit an application when the application portal opens. [Note: If an applicant is working with a point-of-sale vendor, they do not need to register beforehand on the site.]
Is there an order on how the funds will be allocated?
In short, yes. For the first 21 days that the program is open, the SBA will prioritize funding applications from businesses owned and controlled by women, veterans, and socially and economically disadvantaged individuals. All eligible applicants are encouraged to submit applications as soon as the portal opens. Following the 21 days, all eligible applications will be funded on a first-come, first-served basis.
The SBA continues to take steps to ensure the equitable distribution of relief, particularly for the smallest businesses, by creating a $9.5 billion set-aside: $5 billion for applicants with 2019 gross receipts of not more than $500,000; $4 billion is set aside for applicants with 2019 gross receipts from $500,001 to $1,500,000; and $500 million for applicants with 2019 gross receipts not more than $50,000.
Last week the Small Business Administration, along with the U.S. Treasury Department, opened the 2nd round of the Paycheck Protection Program (PPP). This second round of PPP allows certain eligible borrowers that had previously received a PPP loan to apply once again. Washington State Bank is also taking first-round applications for those that may have missed out last spring. We are happy to bring assistance to the small businesses in our area when applying for these forgivable loans.
Both rounds of PPP Loans can be used to help with payroll- including benefits, mortgage interest, rent, utilities, work protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism in 2020, and certain supplier costs and operation expenses.
Who May Qualify
A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
- Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses
- Has no more than 300 employees; and
- Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020
- Agricultural businesses are eligible once again*
How and When to Apply
You can apply for a Second Draw PPP Loan from January 13, 2021, until March 31, 2021. Click here for the Second Draw PPP Loan application.
If you are interested in the First Draw PPP Loan, click here for the application.
For more information visit the SBA website, or give one of our lenders a call today (800) 714-2287.
Economic Impact Payments: What To Know
At the end of March, the US passed the CARES act creating the Economic Impact Payment plan for tax paying Americans who filed in 2018 or 2019. While the act was passed at the end of March, consumers should not expect to see their payments until mid to late April.
The amount that each taxpayer will receive varies depending on their adjusted gross income, whether they are married and file together, and the number of qualifying children claimed. These payments will be distributed by one of the following forms of payment: ACH (automatic clearing house) or check. The first batch of ACH transactions were sent out April 10th with an effective date of April 15th. More payments will be sent out throughout the month of April. For individuals who have not filed a tax return in 2018 or 2019 please refer to the IRS website for further instruction. For more information regarding the Economic Impact Payments (stimulus relief checks), visit the IRS website irs.gov/coronavirus.
Due to the overwhelming increase usage of our Online and Mobile Banking systems, Washington State Bank has been informed of these products working at a slower rate. We apologize for this inconvenience and appreciate your patience during this time. Questions regarding your account can be taken at (800) 714-2287 as well.
Our staff at Washington State Bank continues to take the necessary precautions directed by the Governor’s declaration during the COVID-19 (coronavirus) Pandemic. Due to the continued spread of COVID-19, we are encouraging everyone in our communities to continue to practice social distancing, especially if you are feeling ill. We will continue to provide our customers with service at our drive-thru locations during normal business hours. For the health of our staff and our customers, please remember that our lobbies are closed until further notice. We encourage the use of our Online Banking and Mobile Banking products for your financial needs. Customers may still schedule appointments for essential and time sensitive services by calling that location for arrangements.
Economic Injury Disaster Loans
Small businesses in Iowa are now eligible to apply for an Economic Injury Disaster Loan. These loans are available with interest rates at 3.75% (2.75% for non-profits) over 30 years. Currently, the online application portal is down, but in the meantime, businesses can apply by downloading the application file, and mailing in the completed form. The form can be found on the SBA website, www.sba.gov/disaster and then by clicking on “Apply for Assistance.” If you had already began the online portal application but were unable to finish it before it went down, it is recommended that you submit a completed application through the same mail-in process as stated above. For questions about the SBA Economic Injury Disaster Loan program applicants can call 800-659-2955 (800-877-8339 for the deaf and hard-of-hearing) or send an email to: firstname.lastname@example.org.
CARES Act Loans On Their Way
Last week President Trump signed the $2 trillion CARE Act (Coronavirus Aid, Relief, and Economic Security) into law. While it made have been announced that Americans would be seeing the funds from this act rather quickly, the SBA’s Iowa District Office explained that this isn’t an easy process and may take a little time. The Small Business Association explained that many guidelines must be put into place before loans can be made. The agency stated right now there is no real timeline for when these policies and guidelines will be issued. One of the packages, the Paycheck Protection Program, will provide 100% federally guaranteed loans to small businesses. These loans have the possibility of being forgiven if the borrower(s) maintain their payroll during the crisis or restore their payroll following the pandemic. Small businesses and sole proprietorships may apply beginning this Friday, April 3, while independent contractors and self-employed individuals may start applying April 10. Contact your lender for more information.
WSB Looks to Support Local Restaurants During the Pandemic Closures
Washington State Bank is known in our communities for our Cash Mobs held at local businesses each year during the warmer months. These Cash Mobs encourage the residents to shop and dine locally and offers a limited number of coupons called “Cash Mob Bucks” to the attendees as an incentive. Last week WSB announced the introduction of a modified Cash Mob to be held at local restaurants during this difficult time. Rather than dining in like a normal Cash Mob, residents are encouraged to call the restaurant and place a carryout order for that evening. Like other Cash Mobs held, coupons are available at each location in limited numbers as an incentive. WSB also encourages many of employees to participate at these events and makes their announcements on their social media pages. Follow us on Facebook, Instagram, or Twitter to hear where we will be heading next!
At Washington State Bank we have been closely monitoring the current COVID-19 (coronavirus) situation. We are taking the necessary precautions to protect the health and safety of our customers and employees as this is our main priority. Our staff has implemented recommended workplace sanitation procedures and will continue to be as proactive as we can . At this point in time we have made the decision to close all branch lobbies beginning on Thursday, March 19th, 2020. We will continue to operate all drive-thru locations for the time being as well as processing transactions placed in the night drop during their normal business hours. We apologize for the possible longer wait in our drive-thru locations. Any customers needing essential in-branch services are invited to call the bank for an appointment. Please see our list of local phone numbers below and your call will be transferred to the appropriate individual.
/During this time, we encourage our customers to also utilize Online Banking and/or Mobile Banking. Through these products customers can access their account balances, make payments, view transactions, and can deposit checks through eDeposit within Mobile Banking. Our digital chat feature within the app, Conversation, will allow you to connect with a customer service representative during normal business hours.
If you have not enrolled in Online Banking yet, you can begin the process by clicking here. Our Mobile Banking App can be found within your mobile carrier’s app store. For more information on Mobile Banking, click here.
We will continue to work diligently to give our customers the best service we can under these circumstances. Please continue to check our website and social media for updates as the situation evolves. We apologize for any inconvenience this may cause our customers.
Washington: (319) 653-2151
Toll Free: (800)714-2287
Fairfield: (641) 209-9854
Columbus Junction: (319) 728-2436
For more information on COVID-19, please visit the CDC website by clicking here.