Today Salt Lake City hosted a webinar for our business community to talk about the ~$30+ million in CARES Act funding still available to Salt Lake County businesses. This grant money offered through the Small Business Impact Grant (SBIG) is still open for application, but the funds rewarded must be spent by November 30, 2020.
Thank you to those who joined us on the call and the Salt Lake County Regional Development for leading the call and being available to answer questions. You can always get immediate questions through the business relief hotline, 385-468-4011, or visit slco.org/covid-19/
Questions Asked at Today’s Session:
The following is a transcript from the call and is meant to be an aid to help you quickly skim through questions that apply to your business. Please refer to Salt Lake County for final confirmation of these answers.
➡️ Am I eligible if I’m a sole proprietor?
➡️ Can the sole proprietors use payroll to pay themselves for lost revenue?
➡️ One of the requirements of this grant is that I had to be operating prior to January 1, 2020. I opened my business after that date. Are there any programs available for businesses that were opening right when COVID-19 hit?
Yes — 1) Utah’s COMRENT program has a new modification to help 2) Economic Injury Disaster Loan-EIDL with the Small Business Administration-SBA 3) Salt Lake County is looking into future modifications to allow.
➡️ My company received $10,000 from the EIDL loan. Of this $1,000 was a grant and the rest was a loan. Do I report only the EIDL grant amount on my application?
No you will need to report/account both the grant and loan portions. The reason is that EIDL was completely CARES Act funded.
➡️ What are businesses really struggling with right now?
From Roberta Reichgelt: We’re hearing back from our own survey that it is mostly financial needs. They are worried that the programs they received are going to run out. More funding support is greatly welcomed. Check out our website for updated resources. We know there are still talks going on with the federal government. Also, technical assistance and signing up for these programs is needed.SBDC is offering free help.
➡️ When does the money need to be spent by?
Funds for the Small Business Impact Grant (SBIG) must be spent by Nov. 30th, 2020.
➡️ If a business has to close temporarily due to personnel testing positive for COVID-19, does that count as lost revenue?
➡️ If our organization received PPP funding (in excess of the $35K) but repaid it in full, would therefore be eligible for this opportunity?
Yes. As long as you repaid it prior to applying for SBIG.
➡️ Follow up: Does that apply to EIDL as well?
Yes. You can either deny the funding if it is still pending, or return it.
➡️ Where do we sit on future CARES Act funding right now?
On the federal level, there is a back and forth between the house and senate to agree right now. We’re waiting for new information. President Trump did make some executive orders as it applies to unemployment and Utah was one of the first to join this program.
➡️ What if I got $36,000 in PPP, can I still apply?
Unfortunately no. Even if it is $1 over.
➡️ If I gave back a portion or all, to get below that $35,000 threshold could I still apply?
Yes you would qualify prior to applying for SBIG.
➡️ If a business has a $34,000 PPP loan does that disqualify them in any way from the amount they are eligible for?
Yes full eligibility if you can show the losses in excess large enough. SBIG has an online calculator to show you what you might qualify for.
➡️ How can the grant be used to cover payroll expenses?
You probably have an average payroll cost per month, and you would need to articulate that is how you want to spend the grant money (if exclusively on payroll). It doesn’t have to be in excess of the grant amount but you would have to show is that what you are eligible for and what you plan to spend match. If payroll is in excess then you would be fine.
➡️ What if a company applied for Salt Lake City’s Emergency Loan Program (ELP) or Utah’s Bridge Loan, could they still apply for SBIG?
Yes. Salt Lake City’s ELP and Utah’s Bridge Loan program were not CARES Act funded, therefore they do not count as a resource preventing them from qualify. You are eligible for SBIG’s $35,000 allowable.
➡️ So we can cover costs from March 16th to November 30th, 2020?
Yes. You can actually spend in advance of that – for example paying rent in advance. You just need to have spent it by November 30th.
➡️ What about the arts. Can artists and art organizations apply?
Yes. Arts orgs and independent artists can apply. We followed PPP guidelines for the types of orgs can apply for SBIG. 501c3 can apply but there are some other non- profits statuses cannot but might be opened up in a later round.
For example a ‘Craft Lake City’ was cancelled in person. Even if you are a potential vendor at that event you might think about applying. You would need to be able to show lost revenue because the event has been cancelled. You will need to provide some sort of proof – a signed contract, emailed correspondence, especially if you had been there in the past.
Note, if your arts org received CARES Act funding for the humanities, you will need to include that in your SBIG application.
➡️ Let’s talk about companies who have opted not to take PPP funds because if they can’t spend it in time, it will turn into a loan:
➡️ If a company received PPP funds, is that subtracted from the documented losses for the SBIG grant amount?
➡️ Can digital/marketing agencies use advertising spend (google/facebook ad spend) and web hosting expenses (amazon,google) be categorized as expenses covered by the grant?
Yes. That is a traditional operating expense. This grant is designed to help our business continue operating as usual.
➡️ The money is great but it only gets me through September 2020?
COVID-19 relief is constantly changing. We are keeping an updated list (which changes often) at www.slc.gov/ed/covid19
Also, we are hearing a lot of businesses are pivoting from their traditional model to stay afloat. Local First Utah has an academy to getting your business online. When we think about resources, it’s not just financial, it’s also about best practices, information and guidelines.
➡️ Could there be more rounds of funding for SBIG in the future?
Yes it is possible, keep checking back.
Thank you to all of those who participated today. We are constantly thinking of ways to support your business. And in order to that, we need to hear from you. Whether it is through ourcurrent survey or by reaching out to us via (801) 535-7200 or email: email@example.com
How can we help your business take advantage of SBIG? What barriers have you run into (if you have applied)? As always we are here to help.