/ COVID-19 Resources for Pearland Businesses

COVID-19 Resources for Pearland Businesses

The City and the City’s Economic Development Corporation (PEDC) understand the impact COVID-19 is having on our local employers and our community’s economy. We are committed to facilitating communications and support from state and local resources during this time. 

As additional federal and state government resources become available in the future, we will periodically update this information. Please contact us if you have any questions. 

Below are some local resources that can provide assistance during this disruption.

Small Business Administration Programs

Tax Provisions for Businesses

Texas Workforce Commission Resources

CDC: Interim Guidance for Businesses and Employers

Local Public Health Resources

 

SMALL BUSINESS ADMINISTRATION (SBA)

There are multiple programs from the Small Business Administration to assist businesses impacted by COVID-19.

I.  SBA ECONOMIC INJURY DISASTER LOAN (EIDL) AND EMERGENCY ECONOMIC INJURY GRANTS

Background

The U.S. Small Business Administration (SBA) is offering low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as the result of COVID-19 through December 31, 2021. The SBA’s Economic Injury Disaster Loan (EIDL) program provides small businesses with working capital loans that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. SBA offers the loan with long-term repayments in order to keep payments affordable, up to a maximum of 30 years.  In April 2021, the SBA raised the loan limit for the COVID-19 EIDL program from 6-months of economic injury with a maximum loan amount of $150,000 to up to 24-months of economic injury with a maximum loan amount of $500,000.

These working capital loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses with a maximum 30 year term. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.

There is no cost to apply with funds coming directly from the US Treasury and not your bank. SBA will calculate the businesses’ ability to fund itself for the next six months and if it cannot, it is eligible for a loan. There is no required personal guarantee for loans up to $200,000. Collateral is required on EIDLs over $25,000, but a loan will not be declined for a lack of collateral, however will require the borrower to pledge what is available. Payments start the 12th month after the date of the note. There is no obligation to take the loan or draw down entire amount offered.

Application and Additional Information

Applications are handled online through the SBA. To apply online, click here.

For Frequently Asked Questions about COVID-19 EIDL loans, click here.

Additional and up-to-date information can be found on the COVID-19: Small Business Guidance and Loan Resources page on the SBA’s website and Application.

II. SBA PAYCHECK PROTECTION PROGRAM

Background

The Paycheck Protection Program (PPP), as part of the 2021 Coronavirus Response and Relief Supplemental Appropriations Act, provides funding for small businesses payroll, benefits and some operating costs. The program is currently closed, but for more information, visit the PPP page on the SBA’s website.  

III. SBA SMALL BUSINESS DEBT RELIEF

The CARES Act provided the SBA funding to pay all principal, interest and fees for six months on all core existing non-disaster SBA loan products, including 7(a), Community Advantage, 504 and microloan programs. The program debt relief has been resumed for an additional three months starting in February 2021 with payments of principal and interest capped at $9,000 per borrower per month. Borrowers in the hardest hit sectors by the pandemic, including food service and accommodation: arts, entertainment and recreations; education; and laundry and personal care services will receive an additional five months of relief after the additional three months.

SBA will also make payments of principal and interest on newly approved loans between February 1 and September 30, 2021, also capped at $9,000 per month.

Please contact your lender to see if your existing loan qualifies.

IV. SBA EXPRESS BRIDGE LOANS

The Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loans or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan. If a small business has an urgent need for cash while waiting for decision and disbursement on an Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan.
Terms

    • Up to $25,000
    • Fast turnaround
    • Will be repaid in full or in part by proceeds from the EIDL loan

V. RESTAURANT REVITALIZATION FUND

The federal government approved the Restaurant Revitalization Fund (RRF) as part of the 2021 American Rescue Plan Act (ARPA) for small businesses. Businesses that lost revenue in 2020 versus 2019 will be eligible to apply for grants. The ARPA explicitly names the following types of establishments that should be eligible: “restaurant, food stand, food truck, food cart, caterer, saloon, inn, tavern, bar, lounge, brewpub, tasting room, taproom, licensed facility or premise of a beverage alcohol producer where the public may taste, sample, or purchase products.”

Generally speaking, restaurants can apply for grants that are equal to 2020 gross revenue minus 2019 gross revenue.  Grant funds can be used for payroll costs, payments of principal or interest on any mortgage obligation, rent payments, including rent under a lease agreement, utilities maintenance, including new outdoor seating construction, supplies, including PPE and cleaning material, food and beverage inventory, covered supplier costs, operational expenses, paid sick leave, any other expense SBA says is essential to maintain operations.

The Small Business Administration (SBA) will administer and disperse the RRF grants. Those interested in obtaining RRF grants can apply here. Funding is limited, so apply early.

The National Restaurant Association has outlined some Frequently Asked Questions on the Restaurant Revitalization Fund. Click here to view.

 

TAX PROVISIONS FOR BUSINESSES

The Employee Retention Tax Credit and other tax provisions are available to assist business with cash flow and liquidity to encourage businesses to keep employees on the payroll during the COVID-19 crisis. We encourage you to reach out to your accountant/tax preparer to see which provisions can benefit your business.

 

TEXAS WORKFORCE COMMISSION RESOURCES

The Texas Workforce Commission (TWC) offers resources to help Texas employers and employees withstand a slowdown in business such as the impact of COVID-19. For more information on TWC resources for employers, click here.

 

CDC: INTERIM GUIDANCE FOR BUSINESSES AND EMPLOYERS

The Centers for Disease Control and Prevention has released guidance to assist businesses and employers plan, prepare and respond to Coronavirus Disease. The CDC will update this interim guidance as needed and as additional information becomes available. 

 

LOCAL PUBLIC HEALTH RESOURCES

Pearland continues to work with local, regional and state partners to monitor and prepare for Coronavirus.  We encourage you to visit the local County Public Health information pages for the most recent local information.

We also encourage you to visit the COVID-19 page on the City of Pearland’s website.