SBA and Economic Update
It’s the beginning of summer and the economy is getting as hot as the weather but that depends on which side of the economy you are on. As a consumer, cars have never been more expensive, an example of what could take a year to work through – the supply chain – see below. We’ve gone from how fast can we get money out to businesses to how fast can we keep up with consumer spending.
Programs Still Out There
EIDL – This program is still open and increases are under way. The problem, as determined by the Wall Street Journal, is that the department that runs that program was overshadowed by the PPP and later by the RRF, so they have been shortchanged on the resources. Consequently, they are still playing catch-up.
Targeted EIDL Advance – this is now open to ALL business as long as you are in a low income area. Previously, you had to be a prior applicant – that is no longer the case. If you did not receive a $15,000 EIDL grant and your business is in a low income area (please check the map to see), you can qualify for the Targeted EIDL Grant. Click here for more information. Oh, and by the way, a lot of Ontario, Ranch and Fontana are low-income, particularly around the Ontario Airport area. For 15 G’s, it’s worth a look. If you can show a 30% reduction in revenue in 2020 over an 8 week period and have less than 300 employees, you are good to go.
Shuttered Venue Operator Grants - SVOG - $304 million awarded over 411 businesses. The SBA is picking up that pace, but it is still going very slowly. 14,214 requests have been submitted for a total of $11.5 billion. The good news is that $16 billion has been allocated so there is still room. Assuming they can average 411 businesses/week… Let’s see, 14,214 divided by 411 equals… 34 weeks, just in time for 2022 productions.
Restaurant Revitalization Fund - RRF – is a $28.6 billion program. $27 billion was allocated in the first 3 weeks and on an SBA call earlier this past week, there were discussions of going back to congress for additional funding. Stay tuned.
Excerpts from Kiplinger
Worker shortages will moderate this summer… Steel supply should rise in the second half of 2021… Semiconductors won’t improve until 2022... It will take at least six months for auto production to catch up with demand… With new cars scarce, prices of used ones will keep climbing… One of the most significant shortages is freight transportation; expect ocean shipping delays to continue through year… Trucking and rail are overburdened, and likely to stay that way until autumn.
Take some time to think about how these events will impact your business and plan for them. If you have a plan, you know where you are going. And you’ll be a lot less anxious.
Enjoy the Summer!
