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PPP Loan Alternatives for Small Businesses

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The Small Business Administration's Paycheck Protection Program (PPP) stopped accepting new applications in May 2021. If you're a small business owner seeking PPP loan alternatives for your business or for your clientele in specific vertical markets, here are some potential SBA options:

Recent Updates...

1. SBA EIDL: The SBA's Targeted EIDL Advance cash grand program will soon be open to all eligible businesses. EIDL is short for Economic Injury Disaster Loan. Source: Silicon Valley Business Journal, June 8, 20221.

Four Programs to Know

1. COVID-19 EIDL: This loan provides economic relief to small businesses and non-profit organizations currently experiencing a temporary loss of revenue. EIDL is short for Economic Injury Disaster Loan.

2. Restaurant Revitalization Fund: This program provides assistance for eligible restaurants, bars, and other food service businesses impacted by COVID-19. MSPs and IT service providers that support restaurants should keep in mind that the fund covers day-to-day restaurant expenses -- including things like marketing, accounting, equipment, licensing, and fees -- though this only includes costs associated with regular activities, ParTech notes.

3. Shuttered Venues Operators Grant (SVOG):  The Shuttered Venue Operators Grant (SVOG) program was established by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, and amended by the American Rescue Plan Act. The program includes over $16 billion in grants to shuttered venues, to be administered by SBA’s Office of Disaster Assistance.

Eligible applicants may qualify for grants equal to 45% of their gross earned revenue, with the maximum amount available for a single grant award of $10 million. Roughly $2 billion is reserved for eligible applications with up to 50 full-time employees.

Eligible entities include:

  • Live venue operators or promoters
  • Theatrical producers
  • Live performing arts organization operators
  • Museum operators
  • Motion picture theater operators (including owners)
  • Talent representatives

4. SBA Debt Relief: SBA offers debt relief to existing SBA loan borrowers whose businesses have been impacted by COVID-19.

This grid summarizes the various SBA COVID-19 relief options, and associated criteria to meet when considering each funding option.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.