SBA Issues Interim Final Rules on the Paycheck Protection Program

FOR IMMEDIATE RELEASE
January 13, 2021

CONTACT: Johanna Tschebull

The U.S. Small Business Administration (SBA) has scheduled a webinar to discuss the $15 billion Grants for Shuttered Venue Operators program (commonly known as Save Our Stages) on January 14 at 3:00pm EST. The SBA will record and archive the webinar if you are unable to attend live so please register to receive the webinar link and any additional information. 

The grant program is not operational at this point. It is anticipated that the grant program will be operational within the next two weeks, if not sooner. Dance/USA has communicated to the SBA several concerns with the statutory language for the grant program, including not penalizing eligible entities for applying to both Save Our Stages (SOS) and the Paycheck Protection Program (PPP) and the distinction between “gross income” and “earned income” in the grant program. Under the recently-passed funding package signed into law on December 27, the $2.3 trillion Economic Aid to Hard-hit Small Businesses, Nonprofits, and Venues Act (P.L. 116-260), eligible entities are prohibited from receiving a grant from Save Our Stages and a loan from PPP.

The SBA additionally released interim final rules and other guidance for the restart of the $284.45 billion Paycheck Protection Program (PPP) for “second draw” loans and “first draw” loans for certain entities. The SBA has restarted the loan program this week to community development financial institutions and financial institutions that serve minority communities. The SBA is focused on increasing access to the loan program to more minority-owned and women-owned businesses, nonprofit organizations, and other smaller entities. The loan program will be open to other and all participating financial institutions in the coming days. The loan program continues to provide eligibility to various smaller entities, including independent contractors, self-employed, small LLCs, and sole proprietors. Please note that the recently-released guidance also simplifies the process for loan forgiveness for “second draw” loans and certain “first draw” loans that have not been forgiven yet by the federal agency.

SBA Paycheck Protection Program Resources

SBA Resources on PPP First Draw and Forgiveness

SBA Resources on PPP Second Draw

Under the recently-passed law, eligible entities can now take advantage of both the Employee Retention Tax Credit (ERTC) and PPP. The law extends the ERTC to July 1, 2021 and expands the tax credit from 50% to 70% of “creditable wages” for the next two quarters. Dance/USA is urging SBA to allow eligible entities to take advantage of both the ERTC and SOS, which is not specified in the law at this point.

Further inquiries can be directed to Tony Shivers, Dance/USA director of government affairs.

About Dance/USA
Propelled by our belief that dance can inspire a more just and humane world, Dance/USA will amplify the power of dance to inform and inspire a nation where creativity and the field thrive.

Established in 1982, Dance/USA champions an inclusive and equitable dance field by leading, convening, advocating, and supporting individuals and organizations.  Dance/USA’s core programs are focused in the areas of engagement, advocacy, research, and preservation. Learn more about Dance/USA at danceusa.org