To Help Businesses In Philly And Beyond, PayPal Sets Up New $ 530 Million Fund To Help Black-Owned Businesses
Black-owned businesses in Philadelphia and across the country will benefit from a new $ 530 million pledge of PayPal, the big internet payment company.
Pay Pal will spend $ 500 million to create a fund that will invest directly in minority businesses and start-ups through its own investment arm, known as PayPal Ventures, and will also work with community banks and co-ops that invest in underrepresented minority communities.
The Association for Enterprise Opportunity in Washington, DC is overseeing an additional $ 10 million from PayPal to administer $ 10,000 in grants to 1,000 black-owned businesses across the country.
Additionally, Paypal has set aside $ 5 million in grants to empower black business owners by providing them with microloans, technical assistance, information, mentoring, and access to digital solutions.. In Philadelphia, women’s opportunities Resource center, at 20th and Chestnut Streets, will receive a demonstration grant of $ 50,000 related to this project. The group was one of 10 community-based nonprofit lenders to win these grants, including Baltimore Business Lending, the Chicago Neighborhood Initiatives microfinance group, and the Nebraska Enterprise Fund.
PayPal has also pledged to spend $ 15 million to strengthen its internal diversity program.
“For far too long, black people in America have faced deep-seated injustices and systemic economic inequalities,” Dan Schulman, president of the San Jose, Calif., Based company said in a press release. “We must take decisive action to close the racial wealth gap that sustains this deep inequity.
“We listened to leaders in the Black community talk about the challenges facing Black business owners and the support and investments needed to sustain Black-owned businesses and create long-term economic opportunity.”
As part of the plan, PayPal will donate $ 2 for every $ 1 its employees donate and $ 10 for every volunteer hour its employees give locally, up to $ 500,000, according to a press release. The company has around 20,000 employees
It has been difficult for business people to follow all the changing rules in the Paycheque Protection Program without a dashboard – and now the authorities are providing a new one.
The U.S. Treasury and Small Business Administration jointly updated the PPP loan application form on Wednesday, incorporating into the form the various ways the SBA has relaxed the rules in recent weeks.
You will remember the great thing about loans is that if you use the money properly, it turns into grants – and you don’t have to pay it back.
If you need the cash, you better hurry. The deadline to apply for a loan is Tuesday, June 30.
Philadelphia tax accountants Drucker & Scaccetti said the SBA and the Treasury have released updated information on the new borrower application and the various rule relaxations, as reported in what the SBA called the 17th provisional final rule (no, not a typo).
Prepare for more complexity. Latest round of federal advisories “just scratches the surface of what’s to come” as the impact of the federal adjustment to the original program becomes clearer, the accounting firm said.
If you wish to apply, the new application is available on the Treasury website: https://home.treasury.gov/system/files/136/PPP-Borrower-Application-Form-Revised-June-2020.pdf.
Additionally, Paychex Inc., a New York-based payroll company, posted a helpful forgiveness estimator on their website: https://www.paychex.com/business-loans/loan-forgiveness-estimator. You can enter your loan amount, number of full-time employees, and other data for a rough estimate of your loan amount that could be turned into a grant if you play your tax cards right. The question largely depends on how much money is used to keep workers on the job.
In a sports analogy, some say the SBA and Treasury are building the stadium while the game is in progress.
The borrower’s demand reflects several key liberalizations on the program. As we have Previously reported, two key changes are:
You now have 24 weeks to disburse the paycheck program money, compared to only eight weeks.
You only need to spend 60% of your overall payment on payroll, down from the initial 75% requirement to be eligible for loan cancellation.
In other changes:
The deadline for using the loan money has been extended to December 31 instead of the end of this month.
You now have five years to repay the loans, at least those that were made as of June 5. A loan is considered to be made on the date on which the ASB assigns a loan number.
Questions? Direct them to the Lender Relations Specialist at your local SBA office, which you can find online at https://www.sba.gov/tools/local-assistance/districtoffice.
Even as the Trump administration relaxed the rules for the nearly $ 700 million program, U.S. Treasury Secretary Steven Mnuchin told Congress on Wednesday that he never plans to release the names of borrowers to the public.
Kyle Herrig, President of Responsible.US, a watchdog group that claims to focus on political corruption, says it was a reversal of the administration’s previous stance.
“The Trump administration has flip-flopped on its commitment,” Herrig said in a statement. “Once again, big business is getting the red carpet treatment, while US taxpayers are being urged to give up and stop asking so many questions. “
PreviouslyUS Senator Marco Rubio (R., Fla.) said the SBA and Treasury would be required to release loan-level data on the PPP program. The SBA declined to comment on Friday.