BREAKING: Biden Admin fixes PPP program, opens window for small businesses

COLUMBUS, OH (February 26 2021) - As of last Wednesday, President Biden and the Small Business Administration (SBA) adjusted the application requirements for the “Paycheck Protection Program” (PPP), a pandemic relief measure aimed at securing paychecks for employees of disadvantaged businesses. Small businesses are strongly recommended to apply for as long as the two-week window remains open. Continue reading for more details on the PPP, how the specific changes benefit the East Main corridor, and application requirements.

The “PPP” - what about it?

“PPP” refers to the “Paycheck Protection Program.”  Originally established last April, this COVID-19 relief measure is currently administered by the U.S. Small Business Administration (SBA) in partnership with banks and thrift stores. The program eventually included Community Development Finance Institutions (CDFIs).

The program was intended to assist small businesses in weathering the pandemic by retaining their workforces. Despite the original focus on small businesses, the PPP was heavily utilized by larger businesses and was adjusted over time to include non-profits, educational institutions, and other establishments. 

The PPP specifically allows entities to apply for low-interest private loans to pay for their payroll and certain other costs. This wage protection effort aimed to stabilize employment during the pandemic.  These loans equal approximately 2.5 times the applicant's average monthly payroll costs. In some cases, the applicant can apply for a second draw that is equal to the first draw. The loans may also be partially or fully forgiven if the business keeps its employee counts wages consistent with pre-COVID levels. Loan proceeds may also be used to cover rent, utilities, and other operational costs.

What are the changes and why do they matter?

Since its inception, the $800-billion PPP had structural flaws that favored larger, more well-resourced businesses. A few fixes have been made since, including:

  • Creation of a two-week window, starting WEDNESDAY, February 24, during which only businesses with fewer than 20 employees can apply to prioritize support to businesses previously excluded from the application process thus far.

  • Expansion of eligibility for immigrant entrepreneurs.

  • Expansion of equitable funding for sole proprietors, independent contractors, and self-employed Americans, of which 70% are women or people of color.

  • Increasing access by removing barriers for borrowers with student debt delinquencies, making barriers less restrictive for business owners who have had criminal justice system involvement in the past, and by removing restrictions for eligible immigrant business owners.

    • Last week, the SBA also improved its practices around collecting demographic data by moving these questions to the first page of the application form. 

  • Prioritizing applications from businesses with twenty (20) employees or fewer.

    • Many of these businesses were shut out of the first two rounds of the PPP process.

  • Linking loan borrowers’ amounts to the “gross income” entry on line 7 of the Schedule C.

    • This change will meaningfully increase the amount of PPP support available to microbusinesses.

    • Average loan amounts would remain low as other rules place caps on the amount of owner income that can be included in determining the loan amount.

  • Removal of exclusionary requirement for business owners who were formerly incarcerated for non-fraud convictions.

  • Removal of exclusionary requirement for the millions of Americans who are behind on student loan payments.

In short, these fixes are important for their ability to help small, minority-owned businesses. Nearly 95% of Black-owned firms and 91% of Latino-owned firms have no employees beyond the owners (as compared to 78% of white-owned firms).

Application Requirements

Before applying, be sure to gather the following required documentation:

  • Photo ID for all owners who own 20% of the business or more

  • 2019 and 2020 Profit and Loss Statements to show revenue loss during 2020

  • 2019 Business Tax Returns

  • Business organizational documents

    • Payroll Reports with a list of gross wages, paid time off, and taxes assessed for all employees for all 12 months of 2020 

  • 2020 Employer IRS Documents (including one of the following for all 4 quarters of 2020):

    • Form 941: Employer’s Quarterly Federal Tax Return

    • Form 944: Employer’s Annual Federal Tax Return (for smallest employers) 

    • Form 940: Employer's Annual Federal Unemployment (FUTA) Tax Return 

    • Form W-3: Transmittal of Wage and Tax Statements 

  • Documentation to support Health Insurance and Retirement expenses incurred as a part of payroll expenses (e.g., a statement from insurance or retirement company).

Accounting requirements and tax implications

These fixes, along with those related to tax forms, were adversely and disproportionally impacting minority-owned firms. We anticipate that with these changes, we should conversely see more support going to these firms. The Special Improvement District strongly advises local businesses to apply while they can still secure funds in securing their pandemic employment costs.

More information on the program in general and relief options for small businesses can be found here.

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Image from jmf.com.

Ground Breaking for New Main St. Street Lights

On Thursday, Sept. 24 a virtual ground breaking for the new street lights was held at the COTA lot on E. Main St and Weyant. Attended by over 20 people (all wearing masks), the upcoming start of construction was celebrated. This project was conceived through the active cooperation of the Eastmoor Civic Association and the former Mideast Area Community Collaborative (MACC) which has now been succeeded by the Mideast Area Commission (MAC). After the East Main St. Special Improvement District (SID) came into being, the SID and the MAC continued to work with the City to make this project a reality.

Here are some facts about the project:

· Total cost $1,073,712.20.

· Fifty decorative tear drop fixtures with LED lights on 30 foot black poles running from Gould Rd. to the Whitehall border.

· Wires will be buried.

· Construction will take about a year with completion expected in late 2021.

· There will be a 45% reduction in power usage.

We very much appreciate the work of Ms. Lynne LaCour, Manager of the East Side Pride Center and Susan DeLay for their hard work in organizing this event. Susan DeLay has worked for many years on this project and has been instrumental in bringing it to this point.

In conclusion, these new street lights will have a dramatic effect on the appearance of Main St., making it more attractive and safer for investment, for businesses, for shopping, and for walking.

CCP "Special Duty" Police Patrol

Recently, we have contracted with Community Crime Patrol (CCP). CCP acts as ambassadors to East Main Street. Some of their responsibilities include reporting code violations, fighting crime and helping those in need. In addition to working with CCP, we are partnering with and are in constant communication The Columbus Police Department, The City of Bexley and The City of Whitehall to the community safe.

Growth for the Columbus Area Provides Benefits for SID

(March 7, 2020) BEXLEY, OH

Last September, E. Main Street was chosen as a “street corridor… for further study and planning.” Mr. Kevin J. Wheeler, the Assistant Director for Growth Policy at the City of Columbus’ Dept. of Development, reported that E. Main Street was chosen as one of five such corridors.

“With Columbus expected to add 500,000 people by 2050, planners are looking at where this increased population can live,” said the Assistant Director. “The Main St. corridor has potential because it can provide good public transportation into the downtown.”

In addition to this public transportation, the Main St. corridor is able to accommodate for Columbus’s growth in lieu of housing, employment, and property developments. By 2050, 44,300 more housing units are to be installed. Along with these houses will come employment, with the job market projected to grow by a nearly equal 43,300 jobs. In addition to the increase in housing and employment, the City of Columbus’s Dept. of Development has also set aside 900 acres for property redevelopment.

The vacant areas of today’s E. Main. St. corridor are to be filled in this new development, and Mr. Wheeler expressed his enthusiasm in our last annual meeting over the SID’s role in filling those vacancies.

“Making the business district clean and safe will help to prepare Main St. for the development that is projected,” said Wheeler.

For more information regarding the Insight2050 E. Main. St. development plan, please view the plan on Mid-Ohio Regional Planning Commission’s website.

New Program Launched: Clean and Safe into the Future

(February 8, 2020) BEXLEY, OH

Given our adoption of the motto “clean and safe into the future,” the SID would like to report on actions being taken to clean, secure, and sustain our community. The following details were provided to us by SID members and partners at the last annual meeting in September.

Clean

David Levy reported that on Saturday, September 21st of last year, community volunteers and non-violent offenders picked up litter on Main St. He credited Quay Barnes for organizing the litter clean-up.

“The SID is working on getting a consistent, paid, litter clean-up program going on Main St.,” Levy said.

Safe

Ms. Ellen Moore Griffin, Executive Director of Community Crime Patrol (CCP), reported that patrollers are on the street about 250 hours per month.

“(Members of CCP) submit a monthly report of the interactions they have with the public or incidents that they encounter,” said Griffin.

If you wish to regularly receive this report, please request it here.

Future

Ms. Susan DeLay from the City of Columbus’s Dept. of Development reported that the previously discussed traffic lights are to be installed on Main St. between Bexley (Gould Rd.) and Whitehall (just past Barnett Rd.). These new be teardrop fixtures with LED lighting will replace the aged lights in place. This will result in 50 new lights, each on 30-foot poles. Construction began on January 6 and is slated to take 8 months.

Foot Patrols

(January 18, 2020) BEXLEY, OH - Foot Patrols are on Main Street for about 20 hours per week from the Roosevelt to the Whitehall line. Business owners have additionally reported a visible reduction of active prostitutes on E. Main Street since the implementation of the SID foot patrols.

Two Businesses Open as E. Main St. Investments Increase

(January 18, 2020) BEXLEY, OH - Two new businesses have opened since the inauguration of the E. Main Street Special Improvement District. We are glad to report the opening of a restaurant in a formally vacant building, as well as the opening of a pet store specializing in reptiles.

We are also happy to report further indications of increased investment on E. Main Street. Since our inauguration, two motel owners have taken to improving their establishments, with one paving their parking lot and driveway and the other applying a fresh paint job. Additionally, some property owners have reported they have received informal offers to purchase their properties at fair prices.