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Ohio Minority Supplier Diversity Council

The Paycheck Protection Program is available through U.S. Bank, a Preferred SBA Lender

The SBA Paycheck Protection Program (PPP) is a federal loan program that provides assistance to small- and medium-sized businesses impacted by the COVID-19 pandemic. The funds can be used for costs related to payroll and certain other expenses. On December 27, the President signed new relief package legislation that provided additional funding for PPP loans. U.S. Bank is offering First and Second Draw PPP loans to new and existing customers.

First Draw PPP loan
Businesses who did not previously receive a PPP loan will be eligible to apply for a First Draw loan of up to $10 million, using similar criteria from the initial round:

  • Businesses and entities in operation on February 15, 2020 (and not permanently closed).
  • Small businesses, 501(c)(3) nonprofits, 501(c)(19) veterans’ organizations or tribal business concerns that have fewer than 500 employees or otherwise meet the SBA size standard.
  • Businesses in the accommodation and food service sector that employ 500 or fewer employees per physical location.
  • Entities such as housing cooperatives, tax-exempt “business league” organizations under Internal Revenue Code section 501(c)(6), news organizations, and destination marketing organizations are now eligible, subject to additional requirements

Second Draw PPP loan
Eligible businesses, similar to those open to First Draw loans, will be able to apply for a Second Draw PPP loan of up to $2 million, provided they:

  • Have used or will have used the full amount of their first PPP loan (including any increase, if applicable) prior to disbursement of the second PPP loan.
  • Were in operation on February 15, 2020 (and have not permanently closed).
  • Employ 300 or fewer employees.
  • Can demonstrate at least a 25% reduction in gross receipts in any quarter in 2020 when compared against certain past quarterly results.

Apply online today at usbank.com/ppp.

Paycheck Protection Plan Loan Solutions

Congress and the President have re-authorized the Paycheck Protection Program.  This bill allows eligible businesses to receive a second PPP loan, or their first if one wasn’t taken earlier.  SBA has until January 6th to finalize requirements therefore lenders cannot issue new loans until the rules are set.  You can, however, pre-apply. 

If you intend to seek a new loan, we recommend you apply with First Bank of the Lake, who serviced over $500MM worth of loans in round and whom we have a trusted partnership with. Follow instructions received from them, or click here https: //applyforppp.com/bcf.   Any questions may addressed to PPPSupport@firstbanklake.com.

There’s a lot in the bill, but here are highlights:

Second Draw Highlights:
-Businesses with fewer than 300 employees and a 25% drop in sales in a quarter in 2020 compared to the same quarter in 2019 are eligible for a new PPP loan.
-Second draw loans are capped at $2M.  Like the first draw, loans are 2.5x monthly payroll; 3.5x for restaurants (NAICS 72).
-Draws under $150k should expect an expedited process relying on certifications rather than supporting documents.  

Forgiveness Highlights: 
-Forgiveness expenses now include supplier costs (e.g.: accountants and technology).
-Full tax deductibility of business expenses paid for with PPP funds.
-Covered period for the first draw is extended to March 31, 2021.  Borrowers may choose the end of their forgiveness covered period between 8 and 24 weeks after origination.

Upcoming Webcasts For Suppliers From Ernst & Young Focus On New Stimulus Relief Funding & Expectations Of The New Presidential Administration; Feb 1 & 2

1 February, 4:00–5:00 p.m. (ET) — How the new stimulus impacts entrepreneurs and private companies (new)
The new Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act, which provides $900b in additional COVID-19 relief funding.

 Link to register  https://www.ey.com/en_us/webcasts/2021/02/how-the-new-stimulus-impacts-entrepreneurs-and-private-companies 

2 February, 1:00–2:00 p.m. (ET) — Post-inauguration, are you checking the box or changing the game? (new)
Expectations of the first 100 days of the Biden Administration; the new Congress and its potential impact on the regulatory landscape; implications to tax policy, global trade and supply chain; and shifting dynamics after the first 100 days: health, an inclusive economy and sustainability. 

Link to register: https://www.ey.com/en_us/webcasts/2021/02/us-post-inauguration-webcast–are-you-checking-the-box-or-changi  

Are You a Hamilton County Business Owner Thinking About Applying for a PPP Loan? Information Session on Tuesday, January 19th

  • Are You a Hamilton County Business Owner Thinking About Applying for a PPP Loan? Please join a Zoom meeting Tuesday, January 19, 3:30-5:00 pm for important information. Participants will:

  • Learn how to prepare and apply for the new federal PPP loans;
  • Learn who to contact for help; 
  • Learn how to avoid pitfalls that kept many businesses from being successful in the last round, and what is required for loan forgiveness; and
  • Meet representatives of organizations who are providing loans and assistance. 

Our aim is to help Hamilton County neighborhoods by helping more business owners — especially Black, Brown and and women business owners — get their fair share of federal small business loans this time. But you need to be prepared!
This session is designed to bring together small business owners, lenders, technical assistance providers and neighborhood and community developers who want to help their local businesses survive and thrive in spite of the pandemic.

The conversation will be facilitated by:

  • Kala Gibson | EVP and Head of Business Banking, Fifth Third Bank
  • Eddie Koen | President & CEO, Urban League of Greater Southwest Ohio (ULGSWO); and
  • Jilson Daniels | VP of Economic Equity, Port of Greater Cincinnati Development Authority

Agenda:

Introductions 10 min Kala Gibson, Fifth Third
HOT OFF the PRESSES! What Do We Know About PPP 3.0?  20 min Michael Shepherd, Senior Vice President. National SBA Director, Fifth Third
What Help is Available to You?                 25 min Eddie Koen, ULGSWO

What Did We Learn the Last Time that Might Help You Now?

  • Lessons Learned: a checklist for applicants
  • Business Owner Breakout Session: More tips and information
  • CDC and Neighborhood Representatives Breakout Session: Making sure neighborhood businesses are informed
20 min Jilson Daniels, The Port
Questions and Answers 10 min Kala Gibson, Fifth Third

RSVP to Cincinnatiregenerationalliance@gmail.com with your name and your company or organization’s name. 

Space is limited to the first 100 registrants, so act now! You will receive a Zoom link when you register.

 

Fifth Third Bank Launches Collaborative Initiative to Assist Small Businesses Impacted by COVID-19

Fifth Third Bank, National Association, has announced the launch of the Greater Cincinnati COVID-19 Small Business Response and Recovery Initiative to ensure the success of small businesses in Hamilton County. The Initiative will provide small businesses of 25 or fewer employees (with an emphasis on small businesses with five or fewer employees) in low-to-moderate income communities that have been impacted by the pandemic with advice and pathways to accessing capital, via the Initiative’s loan and grant programs.

Fifth Third has invested an initial $700,000; additional funding partner Greater Cincinnati Foundation has invested $250,000 and JPMorgan Chase has invested $100,000. The Greater Cincinnati and Northern Kentucky African American Chamber of Commerce and the Cincinnati USA Regional Chamber are founding business service organizations that will provide technical assistance to participating businesses. Additional business service organizations are the Urban League of Greater Southwestern Ohio and the Greater Cincinnati Microenterprise Initiative. Referral partners for the Initiative are the Hispanic Chamber Cincinnati USA and HCDC, Inc.

The effort will be powered by Next Street, an advisory firm that assists small businesses with accessing capital and technical assistance. The National Development Council has been involved in the planning and design of the Initiative and will serve as the fiscal agent and will also assist in additional fundraising efforts.

“Fifth Third is proud to support this effort. It provides a vital opportunity to coordinate and leverage expertise across the region to help small businesses rebound from the devastating impacts that COVID-19 has had on our economy,” said Kala Gibson, Fifth Third’s head of Business Banking.  “This initiative has great potential to positively impact the long-term small business ecosystem by building new capacity for business service organizations and provides an end-to-end solution for small businesses in our region.”

The key components of the Initiative include:

  • Technical Assistance Program that will assess applicant small business needs, match businesses with recommended assistance via one of the business service organizations participating in the Initiative, and provide online education and resources.
  • Small Business Liquidity Fund to provide responsible loans to small businesses ready to receive capital.

In the future there will be a program to provide grants to small businesses that do not have capacity for debt.

The overall economic toll from COVID-19 on small businesses and their employees has been immense and will disproportionately affect underserved small businesses, especially those that are women- and minority-owned. Next Street estimates that nearly 70,000 Hamilton County businesses with fewer than 25 employees will be negatively impacted as a result of the pandemic with more than 10,000 of those in low- to moderate-income communities. Many businesses have already been forced to close, and without assistance others will be forced to close in the future, lay off employees, or take on expensive capital that will threaten their resilience. This Initiative will offer support for these entrepreneurs to keep their businesses running.

“Small business owners open their doors every day, which allows their employees the opportunity to earn wages to take care of their families.  Many of these employees live directly in the neighborhoods that those small businesses serve. This Initiative makes resources available to those who take care of our communities,” said Mike Smith, head of business banking for Fifth Third’s Cincinnati region. “Fifth Third is proud to collaborate with JPMorgan Chase, the Greater Cincinnati Foundation and the business service organizations to launch this program.”

Experts from the partner organizations involved in the Initiative will be providing their technical assistance resources as well as potential funding options to the small businesses that are eligible for the Initiative. By pooling the expertise of the partner organizations, the Initiative’s goal is to efficiently deliver resources and reach a broader group of small businesses across Greater Cincinnati. The variety of partners will also ensure that a diverse population is assisted and an expanded number of businesses are served. 

“The Initiative is a welcome respite for all small businesses, acknowledging that small minority-owned businesses have been inordinately impacted by the pandemic. The African American Chamber is happy to partner in this Fifth Third Bank initiative to help businesses reset, rebuild and recover,” said Eric Kearney, president and CEO of the African American Chamber.

“We have a standing commitment to support the people, businesses and communities that help Cincinnati thrive, said Amoury Hollins, Southwest Ohio Area Manager, Business Banking for JPMorgan Chase. “Small businesses across our region have been profoundly impacted by the COVID-19 crisis, particularly those owned by people of color and women, and will require access to resources and on-going support as they navigate the future.”

To learn more about the Initiative and to apply, please send an e-mail to cincinnati@nextstreet.com or visit https://bit.ly/Cincinnati_SmallBiz_Initiative.

About Fifth Third
Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio and the indirect parent company of Fifth Third Bank, National Association, a federally chartered institution. As of Sept. 30, 2020, Fifth Third had $202 billion in assets and operated 1,122 full-service banking centers and 2,414 ATMs with Fifth Third branding in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia, North Carolina and South Carolina. In total, Fifth Third provides its customers with access to approximately 52,000 fee-free ATMs across the United States. Fifth Third operates four main businesses: Commercial Banking, Branch Banking, Consumer Lending and Wealth & Asset Management. Fifth Third is among the largest money managers in the Midwest and, as of Sept. 30, 2020, had $422 billion in assets under care, of which it managed $53 billion for individuals, corporations and not-for-profit organizations through its Trust and Registered Investment Advisory businesses. Investor information and press releases can be viewed at www.53.com. Fifth Third’s common stock is traded on the Nasdaq® Global Select Market under the symbol “FITB.” Fifth Third Bank was established in 1858. Deposit and Credit products are offered by Fifth Third Bank, National Association. Member FDIC.

About the Greater Cincinnati and Northern Kentucky African American Chamber of Commerce
The AACC is the largest African American Chamber in the State of Ohio. It is as committed to inclusion as business development; and as focused on advocacy as on building capacity. The AACC leverages regional partnerships and collaborates with organizations and supplier diversity and inclusion experts to empower businesses to succeed. The AACC is your business advocate providing business education series, marketing programs and networking events to grow your business.

The AACC was founded in 1996 by a group of African American business owners and consumers seeking to improve the economic status of African Americans and the African American community. The vision was to form an organization, which would advocate on behalf of emerging and established businesses, help to create new market opportunities, and provide access to capital, and revitalize African American communities.

About Next Street

Next Street was founded in 2005 with the belief that small businesses are the engines of inclusive growth in underserved markets. Serving as trusted advisor to some of the country’s most dynamic organizations, they are a mission-driven advisory firm revolutionizing how our clients provide capital, customers, and services to small businesses and entrepreneurs.

Next Street provides their clients with strategies and tools to drive equitable small business growth and create a more an inclusive US economy. Next Street also directly serves thousands of individual businesses every year through tailored small business development services and programs.

About the Cincinnati USA Regional Chamber

The Cincinnati USA Regional Chamber grows the vibrancy and economic prosperity of the Cincinnati region. It does this by serving as a bold voice for the interests of its nearly 4,000-member businesses and their more than 300,000 employees. We are committed to expanding the region’s talent and, by harnessing the power of Cincinnati’s unique offerings, implementing regional vision, and through intentional inclusion in everything we do, the Chamber is on a path to help transform this region into the hottest city in America.

About NDC

NDC acts as partner, teacher, advisor, investor, developer and lender, bringing together technical know-how and capital for community and economic investment. We work with local and state governments and community-based organizations to help them create and implement their own unique economic and community development strategies. Over the years, our programs and services have evolved to reflect the changing policy environment, adding services and products to meet emerging needs. We provide technical assistance, professional training, small-business lending, debt and equity financing for residential, commercial, public, and nonprofit facilities. Our nationally recognized training programs help build a professional workforce in economic and community development that can advance and sustain progress in their communities.