Federal Grants & Loans for Your Business

By Kathy Bazan, Small Business Consultant

April 12, 2021

As of today, here a quick review of the federal small business grant and loan programs. Stay tuned! Any of these may change tomorrow.

ERTC: Employee Retention Tax Credit.

Who? If you pay federal or state payroll taxes, you may be able to get a refund of those taxes.

  • For 2020, you may qualify for a refund of up to $5,000 per employee.
  • For 2021, you may qualify for a refund of up to $10,000 per employee.
    • If you already filed your 941 which lists the payroll taxes you paid, you can file and amendment to get your refund.
    • If you have not filed your 941 for any quarter, you can ask for an advance for any one month in that quarter. For instance, in Q2 2021, you can in May file for an advance on April’s payroll taxes. See your payroll processor for more details.


PPP: Paycheck Protection Program

When? Deadline extended to May 31, 2021.

What? A forgivable loan to pay your payroll and other necessary expenses. No collateral or personal guarantees are required. The term is 5 years; interest rate is 1% on any funds not forgiven.

First Draw PPP or PPP 1.0: You do not need to show that your revenues declined by 25% from 2019 to 2020. This is still open to anyone who has not applied.

Second Draw PPP or PPP 2.0: You do need to show a 25% decline in revenue. You do NOT have to apply for forgiveness on your PPP 1 before you apply for your PPP 2.

How much?

  • If you are a sole proprietor, self-employed person, independent contractor, or a business or non-profit with fewer than 20 employees, you can apply based on your gross revenue.
  • Otherwise, you can apply for 2.5 times your average monthly payroll based on either calendar year 2019 or 2020—whichever time you had more people on payroll.
  • If you NAICS code starts with 72 (hospitality and restaurants), you can apply for 3.5 times average monthly payroll.

How? Apply to an SBA-approved lender (e.g., bank, credit union, eligible non-bank lender, or Farm Credit System institution. Like the SBA 7(a) and 504 loans, if the lender approves you, the SBA in the majority of cases will approve your loan.


  1. 22, 2021: Any independent contractor, sole proprietor, eligible self-employed individual, small business or 501(c ) 3 non-profit with fewer than 20 employees can apply for a PPP 1 or PPP2 with a fintech (e.g., PayPal or Womply.com) or SBA-approved lender taking these applications (e.g., Northeast Bank, Old Dominion Bank, US Bank). You can use your Schedule C to apply based on your gross revenue (line 7 on 1040 form), rather than on net revenue. This should be a larger loan for you.
    • If you filed the 1120S tax return for a corporation (and not a Schedule C), then apply at SmartBizLoans.com and other lenders.
  2. If you have more than 20 employees, you can apply at any SBA-approved lender (e.g., bank or credit union) or a fintech (e.g., QuickBooks).
  3. Eligible entities for PPP 1 and PPP 2 include all of those listed previously and: a Tribal business concern, a housing cooperative, a small agricultural cooperative, , an eligible nonprofit news organization, additional covered nonprofit entities, eligible Internet publishing companies, certain hospitals owned by governmental entities, certain legal gaming businesses, certain electric cooperatives, certain telephone cooperatives.
  4. Non-profits which can apply include:
    • 501(c ) 3 (e.g., a faith-based entity or a charity)
    • 501(c ) 6 (e.g., Chambers of Commerce, destination marketing)
    • 501(c)(19) veterans’ organizations.


EIDL: Economic Injury Disaster Loan

What? Originally a low interest loan offered by the SBA to those who survived a natural disaster (e.g., Joplin tornado, Hurricane Katrina), the program was expanded in March 2020 to include all those businesses impacted by COVID-19.

How much? The maximum loan was recently increased to a maximum of $500,000 at 3.75% for businesses and 2.75% for non-profits.

  • If you applied and were approved for a smaller amount prior to April 2021, the SBA will send you an e-mail inviting you to apply for more funds. If you do not get the e-mail by May, contact the SBA directly.

Can you have both the EIDL, PPP 1, and 2? Yes.


SVOG: Shuttered Venue Operators Grants

When was SVOG approved? December 27, 2020.

When did the application portal open? April 8, 2021, but it closed 24 hours later due to technical problems. We are waiting for it to reopen.

Are there priorities? Yes.

  • In the first 14 days applications are accepted, those who had a 90% or greater revenue loss from April to December 2020 are encouraged to apply.
  • In days 15-28 that the portal is open, those who experienced a 70% or greater revenue loss can apply.
  • After day 29, any entity which suffered a 25% or greater revenue loss when comparing 1 quarter of 2019 to the same quarter in 2020 is allowed to apply for the grant.

When will grants be issued? Hopefully, later this April. You can go here for more information and to apply once open.

What? Grants for those who

Who? Live performance venue operators, live performing arts organizations, museum, aquariums, movie theater operators, live venue promoters, theatrical producers, and talent representatives impacted by the pandemic.(For more info, see Journal of Accountancy.). .

Can you get the PPP and the SVOG?

  • If you won your PPP on or after December 27, 2020, then your SVOG is reduced by the amount of any PPP 1 or PPP 2 you received.


RRF: Restaurant Revitalization Fund

When was RRF approved: March 11, 2021

When is the application portal expected to open? April 2021

Where will the application portal be? On the SBA website

Will certain applicants have priority to apply? Yes. Women, veterans, and People of Color will have first priority to apply.

Which businesses are eligible to apply?

  • Food service including restaurants, food stands, food trucks, food carts, caterers,
  • Beverage service including saloons, inns, taverns, bars, lounges, brewpubs, tasting rooms, taprooms, and a licensed facility or premise of a beverage alcohol producer where the public may taste, sample, or purchase products.
  • If the business is part of a publicly-traded company or is owned by a state or federal government, then it cannot

Do you need a DUNS number to apply? As of April 1, this was no longer a requirement.


If you have questions or would like more information, please reach out to me at brcconsultant@TualatinChamber.com or (503) 692-0780.
My consultations with you are at no cost and are confidential. Since 2014, I have counseled small business owners on gaining access to capital, marketing, and other topics.

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