U.S. small businesses are still able to apply for the federal pandemic stimulus program. According to SBA Administrator, Isabella Casillas Guzman,
“We still have billions of dollars in relief in our COVID idle program.”
Guzman served as the Director of the California Office of the Small Business Advocate before beginning her term with the SBA under the Biden administration in March.
What Programs Are There For Small Businesses?
The Paycheck Protection Program (PPP,) the Restaurant Revitalization Fund, the Shuttered Venue Operations Grant (SVOG,) and the Economic Injury Disaster loans were created by the SBA in order to benefit businesses after the nationwide COVID-19 shutdowns.
With the Delta variant in the United States, this leftover funding may be absolutely necessary for small businesses who are struggling to deal with the labor shortages and local restrictions.
Small Businesses Planning For A Brighter Future
“We stand ready to support our small businesses with whatever programs we have,” added Guzman. Businesses seeking to not only survive but grow during the economic recovery should seek to take advantage of these opportunities.
While early iterations of the relief efforts were out of reach for many small businesses, the SBA recently developed a direct forgiveness portal specifically for small businesses who took out PPP loans under $150,000. Guzman says the platform can be simply used in under 10 minutes.
Over $470 billion in PPP loans have been forgiven as of August 2021 and the SBA seeks to get all $800 billion back into the marketplace.
“We want to see those loans move to forgiveness if they’re eligible, and those lenders have that capital to now re-lend in the small business community.”
Another thing that small businesses should consider as they recover from the economic disaster is if they can qualify under Section 1202 as a Qualified Small Business. This gives business owners and investors with equity in the company a chance to be eligible for the 100% capital gains tax exemption on Qualified Small Business Stock.
Many small businesses may be unaware of the tax benefits of setting up and growing your business while maintaining QSBS eligibility. Contact QSBS Expert for help with qualification as well as monitoring to ensure that you hold on to your eligibility over time.
This article does not constitute legal or tax advice. Please consult with your legal or tax advisor with respect to your particular circumstance.
