PPP, EIDL Program Reopenings & 4 More Small Business News Stories You Need To Know
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Welcome to another week of Merchant Maverick’s essential news roundup for small business owners.
This past week featured the hope of a number of new aid tools for small businesses, from government stimulus money to a new SBA program to a promise of coffee-funded investments. Read on through for this week’s top five must-know stories for small business owners:
Table of Contents
- PPP Reopened, EIDL Program Set To Reopen
- SBA Launched Ascent Program For Women Entrepreneurs
- Starbucks Pledged $100 Million Towards Businesses In Underserved Communities
- Report Says PPP’s First Round Overlooked Sole Proprietors
- Small Business Optimism Dropped To A 7-Month Low In December
- The Latest From Merchant Maverick
- Something Good…
PPP Reopened, EIDL Program Set To Reopen
After already opening via an exclusivity period for community banks targeting underserved communities, the Paycheck Protection Program is set to reopen to everyone on Tuesday, January 19. Merchant Maverick has a number of tools to assist small businesses in need of aid, including these articles:
- Round 2 PPP Loans Explained: Rules, Requirements, & Where To Apply
- PPP Round 2: How To Apply For A First Or Second Draw PPP Loan
- 7 Lenders That Are Offering Second Round PPP Loans Online
Meanwhile, the EIDL grant program is set for a reopening on Sunday, January 17. EIDL grants are particularly tantalizing because they don’t need to be repaid — unlike traditional loans.
Why this matters to you: Despite fears over its ineffectiveness, the PPP will be a crucial lifeline for many businesses that are continuing to struggle amidst the pandemic. EIDL grants will also play a key role in sustaining the small businesses that make up a key component of the American fabric. Further reading: Congress made PPP more flexible, but businesses say it’s not enough, CNN Earlier this week, the SBA announced the launch of Ascent, a digital program geared to help women business owners set and achieve their business goals. The SBA said in an email that the program is designed to aid “the missing middle”, which the government agency defines as “growth-oriented women entrepreneurs who are beyond the start-up phase and already generating revenue yet looking to grow and scale.” Interested business owners can join the Ascent program via the SBA’s microsite. Why this matters to you: As Merchant Maverick found in our recent best states for women-led startups report, women are woefully underrepresented in the entrepreneurial space. Hopefully, this latest venture by the SBA will help encourage women’s entrepreneurship across the country. Further reading: Women accounted for 100% of the 140,000 jobs shed by the U.S. economy in December, Fortune Starbucks announced Tuesday that it plans to invest $100 million in small businesses. Dubbed the Starbucks Community Resilience Fund, the money will be targeted towards small business growth and community development projects in BIPOC neighborhoods. The coffee joint chain says the investments will be made through 2025 and will initially focus on 12 metro areas across the US: Why this matters to you: Any money that goes towards small business growth will be crucial in rebuilding our economy — especially as we look towards a post-pandemic future. A daunting report by The New York Times uncovered how some sole proprietors received little support from the PPP when it first launched last spring. According to the report, 300 businesses across the US received $99 or less in PPP funding — a number that makes such aid almost meaningless. Sole proprietors were hit hard because PPP rules suggested that banks look at the profit of businesses that don’t have a payroll. As such, if a sole proprietor didn’t pay themselves a fixed salary, they might receive a bite-sized loan. Others, meanwhile, weren’t even given PPP loans because they were deemed unprofitable. Why this matters to you: Unfortunately, the SBA didn’t respond to the Times’ request for a comment, and it’s looking like things won’t be changed for the second go-round of the PPP. If you are a sole proprietor without a fixed salary (or have a minimal profit), be prepared for a struggle when it comes to gaining access to PPP funding. The latest Small Business Optimism Index published by small business association NFIB paints a sobering picture: The index drop 5.5 points in December to 95.9 — a historically large plummet. Additionally, the December index is at a seven-month low. The increased spread of COVID particularly worries small business owners as sales expectations over the next three months fell 14 points to a net of -4%. Why this matters to you: While the US economy is certainly struggling — and there is much cause for concern — hopefully the government stimulus package will bump up the overall level of small business optimism in the coming months. A new year is upon us, which means that tax season is just around the corner. Check out Merchant Maverick’s guide to the top 30 deductions for small businesses to take in 2021 that may save you some much-needed cash this year: For our positive story of the week, we’ll hop across the pond to a plumber in England who has spent £57,000 ($78,000) helping fix heating and plumbing for more than 10,000 families throughout the pandemic. The plumber, James Anderson, continued to aid families through even the holidays. In the six days between Christmas and New Years this past December, Anderson, three volunteers, three apprentices, and four engineers worked 93 jobs for free. “We won’t ever walk away from a customer who needs us. If you need help, we’re here,” Anderson told the Daily Mail. He added: “I work seven days a week, 70 hours a week. I haven’t taken a single day off, I’ll have enough rest when I’m dead.”SBA Launched Ascent Program For Women Entrepreneurs
Starbucks Pledged $100 Million Towards Businesses In Underserved Communities
Report Says PPP’s First Round Overlooked Sole Proprietors
Small Business Optimism Dropped To A 7-Month Low In December
The Latest From Merchant Maverick
Something Good…
Jared Beilby
Expert Analyst & Reviewer at Merchant Maverick
A credit card analyst and expert in neobanking, Jared has been researching and writing about small business finance since 2018. His data studies have been cited in a number of media outlets, including Forbes, MSN, and NBC. He holds a Bachelor of Arts in Journalism from George Fox University.
View Jared Beilby's professional experience on LinkedIn.
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