**Updated on March 29, 2021**
With so many relief options with varying program deadlines, it is hard to keep track of what federal COVID relief is available for small businesses. Below is a list of the main relief programs bookstores can utilize. This list will be updated if and when changes are made.
Contact ABA’s Advocacy Team at [email protected] for additional information.
Paycheck Protection Program (deadline May 31, 2021)
Funding is still available for the Paycheck Protection Program (PPP)! Changes have recently been made to this forgivable loan, making more expenses eligible for forgiveness and allowing sole proprietors and other self-employed individuals to access more relief. Additionally, business expenses paid for with a forgiven PPP loan are now tax deductible at the federal level (as well as some state levels), and PPP borrowers are no longer penalized for also receiving an Economic Injury Disaster Loan Advance or Grant.
Tax Credits for Paid Sick and Family Leave (September 30, 2021)
Bookstores with fewer than 500 employees are eligible for refundable tax credits to reimburse them for providing employees with paid sick and family leave due to the pandemic. (Providing this leave was mandatory up until December 31, 2020, but now it is voluntary.) Bookstores can receive a PPP loan and claim these credits so long as the funds are not used to cover the same payroll costs.
See this article for an overview of the current tax credit (pre-American Rescue Plan), and see this article for an overview of changes made under the American Rescue Plan. For more specific information about the tax credit, including what qualifies as leave, the maximum tax credit allowed, and how to claim the credit, see these FAQs. (Note: As of publication, the FAQs have not yet been updated to reflect changes made in the American Rescue Plan).
Employee Retention Tax Credit (deadline December 31, 2021)
Eligible bookstores that experienced hardship due to COVID-19 can receive the Employee Retention Tax Credit, a refundable tax credit (of up to $28,000 per employee for 2021) for certain wages paid to employees kept on payroll during the pandemic. Bookstores can now receive a PPP loan and claim this credit so long as the funds are not used to cover the same payroll costs.
For more information, see ABA’s FAQ on the Employee Retention Tax Credit (updated to reflect changes made in the American Rescue Plan).
Economic Injury Disaster Loans (EIDL) (deadline December 31, 2021)
The Economic Injury Disaster Loan (EIDL) is a flexible loan to meet financial obligations and operating expenses that could have been met if the disaster (in this case the pandemic) had not occured. Bookstores with 500 or fewer employees are eligible. Bookstores can receive a PPP loan and EIDL so long as the funds are not used to cover the same costs.
On March 12, 2021, the Small Business Administration extended the deferment period on all disaster loans (including COVID-19 disaster loans) until 2022. In other words, businesses that take out an EIDL loan will have until 2022 to make their first payment on the loan. However, interest does accrue during the deferment period.
Visit this page to learn more about EIDL, including the loan terms and use of proceeds.
(Note: EIDL is different from the EIDL Advance or Grant which did not have to be repaid. The EIDL Advance is no longer open for applications and is now targeted to low-income communities and economically disadvantaged businesses. The SBA will contact businesses if they are eligible and if there is funding available.)
Small Business Administration Debt Relief (deadline varies)
The Small Business Administration (SBA) is providing debt relief to 7(a), 504, and Microloan borrowers (this does not include PPP and EIDL) during the pandemic. The deadline for when the SBA will stop paying principal, interest, and fees depends on when your bookstore received its loan. Borrowers do not need to apply for this assistance; it is automatically provided by the SBA. Bookstores can receive a PPP loan and qualify for this debt relief.
Questions? Contact the lender that serviced the loan.
Small Business Administration Loans: 7(a), 504, Microloans (no deadline)
The 7(a) Loan Program provides loans of up to $5 million that can be used for short- and long-term working capital, to refinance current business debt, and to purchase furniture, fixtures, and supplies, among other things. Learn more about 7(a) loans here.
The 504 Loan Program provides loans of up to $5 million for long-term, fixed-rate financing used to acquire or improve fixed assets like equipment and buildings for business growth, job creation, and modernization. Learn more about 504 loans here.
The Microloan Program provides loans of up to $50,000 to help small businesses start up and expand. Microloans can be used for a variety of purposes, including working capital, inventory, and supplies. Learn more about microloans here.