Small Business

Commercial Property Insurance: Protecting Your Assets

Commercial Property Insurance: Protecting Your Assets

Posted on by Shield Insurance Agency

Shield Insurance Blog | Commercial Property Insurance | Business Insurance | Start A Quote Today!

As a business owner, you know that protecting your assets is crucial to the success of your company. One of the most important assets you have is your commercial property. Whether you own the building or lease it, you need to have the right insurance coverage to protect it from unexpected events. In this blog post, we will discuss what commercial property insurance is, what it covers, and why you need it.

What is Small Business Commercial Property Insurance?

Small business property insurance is a type of insurance that provides coverage for your business property, including buildings, equipment, inventory, and other assets. This type of insurance is designed to protect your business from financial losses due to damage or loss of property caused by events such as fire, theft, vandalism, and natural disasters.

What Does Commercial Fire Insurance Cover?

Commercial fire insurance is a type of insurance that provides coverage for damage caused by fire to your commercial property. This type of insurance covers the cost of repairing or replacing your property, as well as any lost income due to the fire. It may also cover damage caused by smoke and water used to extinguish the fire.

How Does Landlord Commercial Building Insurance Work?

Landlord commercial building insurance is a type of insurance that provides coverage for commercial property owners who lease their buildings to tenants. This type of insurance covers the building and any attached structures, as well as any liability claims that may arise from injuries or damages that occur on the property. The tenant is responsible for insuring their property and liability.

What Does Commercial Property Insurance Cover?

Commercial property insurance covers a wide range of events that can cause damage or loss to your business property. Some of the most common types of coverage include:

  • Property damage: This covers damage to your building and any attached structures, as well as your business equipment, inventory, and other assets.
  • Business interruption: This covers lost income and other expenses that occur when your business is unable to operate due to a covered event.
  • Liability: This covers claims made against your business for injuries or damages that occur on your property.
  • Natural disasters: This covers damage caused by events such as hurricanes, tornadoes, earthquakes, and floods.
  • Theft and vandalism: This covers damage or loss caused by theft or vandalism.

Who Needs Landlord Commercial Property Insurance?

If you own a commercial property and lease it to tenants, you need commercial landlord insurance. This type of insurance provides coverage for the building and any attached structures, as well as any liability claims that may arise from injuries or damages that occur on the property. It is important to note that the tenant is responsible for insuring their property and liability.

Affordable Protection with Shield Insurance Agency

At Shield Insurance Agency, we understand the importance of protecting your commercial property. That’s why we offer affordable insurance solutions that provide the protection you need. We represent over 40 insurance companies, which allows us to find the best coverage at the best price for your business.

Contact Shield Insurance Agency at (616) 896-4600 for a free quote today or start the quoting process by visiting this LINK and an agent will be in touch soon. We are committed to helping you protect your business and your assets.

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6 Factors to Consider When Choosing Small Business Insurance

6 Factors to Consider When Choosing Small Business Insurance

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Shield Insurance Agency Blog | May 10, 2023 | Small Business Insurance | Begin a quote today!

As a small business owner, you know that running a business comes with a certain level of risk. Whether you’re just starting out or have been in business for years, it’s important to protect your business with the right insurance coverage. But with so many options available, how do you choose the right insurance for your business? In this blog post, we’ll discuss six factors to consider when choosing small business insurance.

1. Your Risk Levels

The first factor to consider when choosing small business insurance is your risk levels. Every business is different, and the risks associated with each business will vary. For example, a construction company will have different risks than a retail store. It’s important to assess your business’s risks and choose insurance coverage that will protect you in the event of a loss.

2. Professional Guidance

Choosing the right insurance coverage can be overwhelming, especially if you’re not familiar with the different types of coverage available. That’s why it’s important to seek professional guidance when choosing small business insurance. An insurance agent can help you assess your risks and recommend the right coverage for your business.

3. Employment Insurance Laws

Employment insurance laws vary by state, so it’s important to understand the requirements in your state. For example, in some states, businesses are required to carry workers’ compensation insurance, while in others, it’s optional. Make sure you understand the employment insurance laws in your state and choose coverage that meets those requirements.

4. Insurance Provider Accessibility

When choosing small business insurance, it’s important to consider the accessibility of the insurance provider. You want to choose an insurance provider that is easy to work with and responsive to your needs. Look for an insurance provider that offers online access to your policy information and has a customer service team that is available to answer your questions.

5. Premium Costs

Of course, cost is a factor when choosing small business insurance. You want to choose coverage that is affordable, but you also want to make sure you’re getting the coverage you need. When comparing insurance providers, make sure you’re comparing apples to apples. Look at the coverage limits and deductibles to make sure you’re getting a fair comparison.

6. Geographical Coverage Region

Finally, it’s important to consider the geographical coverage region when choosing small business insurance. If your business operates in multiple states, you’ll need coverage that extends to all of those states. Make sure you choose an insurance provider that offers coverage in the regions where you do business.

Choosing the right insurance coverage for your small business can be overwhelming, but it’s an important decision that shouldn’t be taken lightly. At Shield Insurance, we understand the unique risks associated with small businesses and can help you choose the right coverage to protect your business. Contact us today at (616) 896-4600 to learn more about our small business insurance options.

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How to Sell at a Farmers Market

How to Sell at a Farmers Market

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Nationwide | February 23, 2021 | Farmers Market | Business Insurance | Start a quote today!

Strolling around the local farmers market on a Saturday morning is a popular pastime, and if you grow, bake, craft, or create things as a hobby, you may have wondered if you might sell your goods and produce there. Farmers markets are growing in popularity, so it’s no surprise that gardeners, bakers, artists, and other local vendors are capitalizing on this money-making opportunity. Before you start down the path of making this dream a reality, you first must make sure that there’s a market at which you can sell.

A Guide to Becoming a farmers market vendor

In this article, we’ll explore how to become a farmers’ market vendor. While it may seem as easy as grabbing your goods, setting up a table, and bringing in customers, there are tried-and-true tips and strategies that may improve your odds of success and increase your profitability. Here are some steps you can take to set your plan in motion:

1. Decide what you’re going to sell at the Farmers Market

You may already have an idea of what you’re going to sell based on your own handmade or grown goods. If you’re an artist, it’s natural that you’re considering selling your art. If you’re a renowned baker among friends and family, you may want to sell your delicacies to the masses. Perhaps you’re considering new things to sell for the first time. Some popular items for sale at many farmers markets include produce, dairy, flowers/seedlings, honey, soap/skin care, beverages, and prepared food.

When thinking about what you’d like to sell, some questions to ask yourself might be:

• Do you have the means to grow your own produce?
• What is your timeline?
• Do you plan to resell goods?

Besides having the means and materials to sell any of the above items, it’s important to note that different products may require different kinds of licenses and that each farmers market has its own rules about what you can and cannot sell.

2. Make a business plan

So you’ve decided to start selling at the farmers market. A good business plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and shed light on some unknowns. A few things a business plan will help you consider are:

• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge your customers?
• What will you name your business?

Business plans are helpful no matter your level of investment — whether your farmers market is more of a hobby or full-time income. Read more on how to write a business plan.

3. Set your budget

It’s important to know what types of expenses to include in your budget. When setting your budget, there are many things to consider, including:
• Stall fee/site location cost
• Licenses
• Tables and seating
• Personnel (will you be paying staff, or will you have volunteers?)
• Storage (for merchandise and money)
• Credit card processing equipment
• Promotional items (e.g., signs, fliers and order sheets)
• Food permit costs

4. Register your business and acquire any permits or licenses

Before you start selling at a farmers market, you’ll need to get a permit for your booth. Start by contacting your market’s management team and asking what permits or licenses you’ll need to sell legally. It’s also important to be aware of local regulations and what that entails for registration (e.g., your state’s Division of Food Safety). Ask your contacts at the farmers market about required permits and licenses. Information can also be found at your state’s Department of Agriculture website.

If you do need to register with a state or local authority, you’ll fill out an application form, pay a nominal fee and submit to any required facilities inspections (for instance, your commercial or home kitchen).

5. Claim your spot for the perfect farmers market

Be proactive in claiming your spot at the market, as most farmers markets have waiting lists due to popularity among other vendors. Most markets have a website where you can apply. Otherwise, attend the market and ask to speak to a market manager. To maximize your chances of getting your first or second choice for your farmers market booth, contact market operators as early as possible, well before the season begins. Worst case scenario: You get on next year’s waiting list before all the latecomers.

6. Figure out the logistics

You’ll need to figure out all the details of setting up your space and how to transport all your goods and wares from house to market. If your food requires refrigeration, rely on coolers until you know whether your stall in the market contains access to a power source.

If you’re a small vendor, you may be able to fit everything you need in the trunk of your car. Just be careful to package things in manageable amounts because you might have to walk a far distance from the parking lot to your stall. Consider bringing help with you to make the setup, cleanup, and transportation processes easier as well as helping with the sales and monetary transactions.

Tips for making the best of your farmers market endeavors

Once you’re at the farmers market, your booth design and signage are going to play a big role in how successful you are. Make sure your area is open, clean, colorful — and visible. Set yourself up for success with these tips:

1. Market research

What other types of items are being sold at the farmers market you’re targeting? Is your product a good fit? It’s good to sell at a venue where there’s lots of demand for a certain product, but on the other hand, you don’t want to be the hundredth honey vendor at the market. Stick to a specialty that few other vendors offer or choose a market where your product isn’t oversaturated. Of course, differentiating your product from others by advertising its uniqueness always helps.

2. Catchy promotional materials

Good advertising can set your booth apart! When creating your promotional items, always check first to see whether there are certain color or sizing requirements for signs and fliers. If you are artistic (or know someone who is), you can try creating them yourself. If not, hire a marketing or design firm. Your logo and information can go on business cards, shopping totes, and handouts such as pens, just to name a few.

3. Presentation

Put some thought into your farmers’ market setup by figuring out how to present yourself while selling at your stall or booth. In the eyes of the customer, you’re a reflection of your store and your products. If you’re hoping to make a big profit, you’ll have to make your stall eye-catching and attractive. Invest in a clean, simple tablecloth to make your food or produce stand out. Be sure to wipe off any shelving before you set up for the day, and keep sample trays clean and free of crumbs. Opt for legible, creative labels that draw the eye toward all of your goods.

4. Do a practice run at home

Practice setting up and taking down your farmers market booth multiple times before your first market experience. Familiarize yourself with how your outdoor canopy structure goes together, how long the entire process takes, how to hang your business name and logo sign, set up the tables, chairs, accessories, and decorations, and how to best display your goods. Be sure to step back and approach to see how your booth looks from a customer’s point of view.

In addition to becoming an expert at setting up and taking down your farmers market stand, you may also want to practice loading and unloading everything to and from your vehicle or trailer. You don’t want to be frantically cramming items into your car the night before, only to realize it doesn’t all fit. Once you’ve figured out the transportation and how to efficiently pack your supplies and goods, it’s a good idea to pack it up the night before to save time in the morning.

5. Be prepared for inspection at the Farmers Market

Health inspections are inevitable; make sure you are prepared to show your licenses, permits, or certifications. Always know what you’re allowed to sell. If you’re selling meat, eggs, or produce, understand your state agriculture health rules, know the difference between processed and raw food, and keep your food cold if applicable.

6. Respect

Farmers markets are a place of community and teamwork. Make sure to respect your shoppers and fellow vendors. For shoppers, keep your lines moving as swiftly as possible, answer their questions, and share a little background on you and your product if they want it. Don’t be afraid to network with your fellow vendors. Refer a customer to their booth, and share success stories with each other.

A farmers market can be a fun way to sell your wares and/or produce in your community while making some extra money. Farmers markets bring together many customers in one place, and the start-up costs are fairly low. If you have the time and determination to become a farmers market vendor, congratulations — and use these tips on starting a business.

Disclaimer: 

The information included is designed for informational purposes only. It is not legal, tax, financial or any other sort of advice, nor is it a substitute for such advice. The information may not apply to your specific situation. We have tried to make sure the information is accurate, but it could be outdated or even inaccurate in parts. It is the reader’s responsibility to comply with any applicable local, state, or federal regulations. Nationwide Mutual Insurance Company, its affiliates, and their employees make no warranties about the information nor guarantee of results, and they assume no liability in connection with the information provided. Nationwide, Nationwide is on your side, and the Nationwide N and Eagle are service marks of Nationwide Mutual Insurance Company. © 2021 Nationwide and Shield Insurance

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Top 3 challenges entrepreneurs face

Top 3 challenges entrepreneurs face

Posted on by Shield Insurance Agency

The Foremost Team | entrepreneurs | Business Insurance

The bell above the door dings and the first customer of the day enters. Grandpa hops up from his desk and greets the customer with a small-town smile ready to answer any question the customer has about his window and door display. Grandma is ready too. She’s in the back room rolling new screens on old frames, ready for any customer problem—broken glass, a hole in the screen, or bent slider frames. I was busy rolling sticky letters on the windows, drawing pictures for my grandpa’s back office, and giving the customers a big five-year-old toothless grin as they entered the shop.

When I think of a small business, memories of my grandparent’s little window and door shop come to mind. With humble beginnings, they poured all they had into their business, but it didn’t come without its challenges. In fact, putting aside economic impacts on a small business, there are several challenges that entrepreneurs face daily to keep the doors open.

Putting aside economic impacts on a small business, there are several challenges that entrepreneurs face daily to keep the doors open.

Here are the top three obstacles small business entrepreneurs face on a daily basis:

  1. Client Base and ServiceGrowing your client base can be a challenge, but it’s vital. Your business might have created the most useful thing since a toothpick, but if no one knows about it, income is doomed. Attaining clients can be hard for those that don’t have a marketing plan or don’t know how to implement it. One step beyond that is retaining a customer base and providing a great product or service that keeps the client motivated to come back.
  2. FinancesMoney management is essential to keep a small business operating, even when the cash is flowing in. Many small business owners have their own assets invested in the company, which means added pressure when business is slower than anticipated. Poor planning and lack of funding can be added stressors.
  3. TimeMany business owners, even successful ones, usually work more hours than their employees and more hours than they plan on. The constant pressure to grow can lead to more work and result in exhaustion. Even those with high energy and passion can find themselves fatigued. It’s important for business owners to find the right pace to keep the business running and the employees positive and healthy.

Most smart small business owners consider the challenges they might face before they even begin. Although daily obstacles are sure to come up for a business, it certainly doesn’t mean failure is ahead. In fact, facing these types of obstacles is sometimes what drives people to pursue their dream in the first place, like my Grandpa. The old window and door shop didn’t come without stress, but that’s what drove him and grandma to continue excellent customer service and impeccable work. He ran a successful small business for years, devoted time to his family, and retired early. I’d say that’s the dream most people hope for.

Protect what you own and what you do.

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5 ways to get the most out of your small business’s health insurance plan - Shield Insurance Blog

5 ways to get the most out of your small business’s health insurance plan

Posted on by Shield Insurance Agency

The Business Journals | By Cigna + Oscar | Oct 25, 2022 | Health Insurance

Whether you’ve just purchased small business health insurance or you’re shopping around, you’re probably aware that coverage can be costly, depending on the plan you purchase. According to a 2021 Kaiser Family Foundation report, the average annual premium was $7,739 for an individual and $22,221 for a family plan. Employers helped cover 83% of the costs for a single person and 63% of a family plan.

That’s why it’s critical to make the most of the plan you have — and help your employees stay engaged. Here are five key ways you can maximize your health insurance coverage, so your employees use the plan often, become healthier and help lower your business’s costs.

1. Emphasize the health insurance plan’s customer support programs and tools.

Some health plans offer dedicated customer support, online tools, and even concierge-like services that can help employees understand and use their plan. For example, Cigna + Oscar is unique in that it offers Care Guides, a team of professionals who help members find doctors and answer their questions about specific benefits and claims. Care Guides can also help coordinate care and prepare members for their upcoming procedures.

The more employees understand how their plan works, the more likely they are to use in-network providers, purchase generic medications, and rely on other cost-saving methods. In turn, this can help you, as an employer, lower your overall costs too.

2. Encourage your employees to manage their health insurance plan digitally.

If your health plan offers a mobile app, it may be where employees can access telemedicine services and prescription refill requests and even pay their premiums online. Encourage them to make the most of these convenient, digital services. After all, they help make your business’s health plan easy to use and can increase employee satisfaction.

If you’re shopping for a health plan now, look for one that offers digital services. You may want to ask your broker:

  • What telemedicine services are available to my employees, if any?
  • Is virtual urgent care available?
  • Can employees request prescription refills online?
  • Is there an easy way for employees to search if a doctor is in-network?
  • What other digital services are available with this health plan?

The bottom line: Today’s employees want to manage their healthcare at the click of a button. A convenient and easy-to-use mobile app and website can help them do that.

3. Communicate to employees about mental health care offerings.

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Shield Insurance Blog - Why Small Businesses Fail - Top 8 Reasons for Startup Failure

Why Small Businesses Fail: Top 8 Reasons for Startup Failure

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Learn the top 8 reasons for startup failure and keep your business from failing with these tips.

Starting a business without a legal entity? It’s time to make it official!


ZenBusiness.com | By Patricia Schaefer | September 1, 2022

Why do small businesses fail? Business failure isn’t something you want to think about when you start a business. But if you want your business to succeed, you need to know and avoid these eight common reasons why businesses fail.

According to statistics published in 2021 by the Small Business Administration (SBA), about 32% of business startups fail before two years. A little over half (51.1%) succumb to business failure within five years. By year 10, only 33.6% survive. The 15-year survival rate is 25.7%

Those statistics are rather grim. And in 2022, small business survival is an even bigger worry because of coronavirus-related declines, supply chain disruptions, and inflation.

While there’s a multitude of conditions that can result in a business failing, most years, the reason small companies go out of business is usually that they make one or more common mistakes.

Here are the top eight reasons for business failure and what you can do to avoid them.

Why Small Businesses Fail

1. You start your business for the wrong reasons

The reason for business failure is often tied to the reason the owner started the business. Is your primary reason for starting your own business the desire to make a lot of money? Do you think that if you have your own business you’d have more time with your family? Or maybe that you wouldn’t have to answer to anyone else? While those are benefits some successful entrepreneurs achieve after years of hard work, they aren’t necessarily reasons to start a business.

The right reasons for starting a company — reasons that lead to building a successful company — include these:

  • You have a passion and love for what you’ll be doing and strongly believe — based on educated study and investigation — that your product or service would fulfill a real need in the marketplace.
  • You have drive, determination, patience, and a positive attitude. When others throw in the towel, you are more determined than ever.
  • Failures don’t defeat you. You learn from your mistakes and use these lessons as business tips to help you succeed the next time around. Studies of successful business owners have shown they attributed much of their success to “building on earlier failures” and on using failures as a “learning process.”
  • You thrive on independence and are skilled at taking charge when a creative or intelligent solution is needed. This is especially important when under strict time constraints.
  • You like — if not love — your fellow man, and show this in your honesty, integrity, and interactions with others. You get along with and can deal with all different types of individuals.

RELATED: How to Start a Business

2. There’s no market or too small of a market

The best business ideas will fail if there isn’t a market for what you sell, or if the market suddenly disappears because of economic changes or natural disasters.  While you can’t predict disasters, before you start a business you need to determine if there’s a market for what you plan to sell and if that market is big enough to be profitable. Keep in mind that “everyone” isn’t a market. The market must be an identifiable group of customers you’ll be able to reach with the marketing dollars and resources you’ll have available.

To avoid business failure after startup, business owners need to keep tabs on their market and customers’ changing needs on an ongoing base, as well.

3. Poor Management

Many a report on business failures cites poor management as the number one reason for failure. New business owners frequently lack relevant business and management expertise in areas such as finance, purchasing, selling, production, and hiring and managing employees. If the business owner doesn’t recognize what they don’t do well and seek help, the company may fail and go out of business. To remedy the problem, small business owners can educate themselves on skills they lack, hire skilled employees, or outsource work to competent professionals.

Neglect of a business can also be its downfall. It’s important to regularly study, organize, plan, and control all activities of your business operations. This includes the continuing study of market research and customer data, an area that may be more prone to disregard once a business has been established.

A successful manager is also a good leader who creates a work climate that encourages productivity. They have a skill at hiring competent people and training them, and they’re able to delegate. A good leader is also skilled at strategic thinking, able to make a vision a reality, and able to confront change, make transitions, and envision new possibilities for the future.

4. Insufficient Capital

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9 Things You MUST Do Today to Grow Your Small Business - Shield Insurance Agency Blog

9 Things You MUST Do Today to Grow Your Small Business

Posted on by Shield Insurance Agency

SmallBizTrends.com | Published: Apr 29, 2018 Last Updated: Jan 22, 2021 | by Jeff Charles In Startup19

Growing a small business isn’t easy. It is one of the toughest challenges many face when they are looking to get out of the 9 – 5 daily grind.

The success of your small business depends on your efforts to grow profits using various methods. From employee training to marketing, every aspect of your business deserves attention.

Rapid growth doesn’t happen overnight, but there are several steps you must take to keep your business moving forward. It takes time and effort. However, when you start reaping the benefits, you will see that your effort is worth it. Here are some tips to consider if you wish to see your business grow.

How to Grow Your Small Business

Understand Your Customers

You can only develop products and services that will be a huge hit if you are attentive to the needs of your customers and prospects. One way to understand exactly what your customers want is through research and surveys.

You should be constantly inviting them to provide honest, even brutal feedback. Reviews and surveys are the best ways to get inside the mind of your customers. This makes it easier for you to develop products and services that are suitable to the current demands of the market. Moreover, it helps you understand the areas in which your company needs to improve.

Improve Customer Service

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Restaurant Revitalization Fund, grant money could be on the way for small businesses - Shield Insurance Agency Blogmoney could be on the way for small businesses

Restaurant Revitalization Fund, grant money could be on the way for small businesses

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By Andy Medici | The Playbook

This article first appeared in The Business Journals.

Small businesses could see more Restaurant Revitalization Fund money and other grants for hard-hit industries — but only after Congress finishes its work on a pair of infrastructure bills.

Right now, Congress is occupied trying to pass both a $1 trillion “hard infrastructure” bill with funding for roads and bridges, as well as another $3.5 trillion bill including tax credits for families with children through a process called reconciliation allowing just 50 votes in the Senate. That political wrangling is happening both between Democrats and Republicans and within the Democratic Party itself over how big the bill should be and how it should be passed.

Click here for the rest of the story…

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PPP 2.0 Paycheck Protection Program - Shield Insurance Agency Blog

PPP 2.0: Paycheck Protection Program, Round 2

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5 Things To Know About PPP 2.0

By Gerri Detweiler
December 28, 2020

PPP 2.0

Update: The President signed a stimulus bill approving the second draw PPP loans on December 27, 2020. These business loans will likely be available sometime in the first few weeks of January. 

With cash buffers of just 27 days, small and medium-sized businesses (SMBs) are notoriously vulnerable. This year, though, the fight for business survival has been particularly difficult. 2020 saw numerous restaurants, gift shops, and salons shutter their doors—more than 100,000 businesses. That said, there are still countless business owners fighting to stay open, and this week’s headlines have brought newfound hope.

While slight, these changes are hugely important. This year, I saw firsthand why the first round of aid fell short for so many small businesses. At Nav, a fintech that helps SMBs secure financing, our team helped over 4,000 business owners secure loans through PPP, but we also saw many small businesses get left behind. A recent survey by Nav found that only 36% of the smallest U.S. businesses applied for PPP, as compared to 61% of mid-sized businesses. Many of these smallest businesses reported opting out of the process due to its now-famous complexities or a lack of the sheer resources required to apply.

In this article, I’ve pulled from the over 5,000 pages of legislation to distill five key points about the new round of PPP loans. This won’t be fully official until a bill is signed, but for now, here’s what you need to know:

1—This round of PPP .02 is meant to target smaller businesses impacted by COVID-19

From the top, changes to eligibility requirements make it clear that the second draw PPP loans are meant to better target smaller businesses negatively affected by the pandemic. Not only must eligible businesses qualify as a small business according to SBA industry revenue standards, but they also must employ fewer than 300 employees, and have suffered at least a 25% gross revenue reduction in at least one 2020 quarter compared to 2019, with alternative calculations for seasonal businesses and those not in business for all of 2019.

Beyond this eligibility approach, a draft of the proposed stimulus bill indicates that the use of funds will be more flexible. It’s true that both rounds are very payroll-focused, but this round adds new categories of eligible non-payroll expenses businesses have had to invest in to weather this pandemic, like PPE or delivery software. This is important for small business owners because that means they can use the money for critical operations costs to stay afloat.

2—There are some very favorable tax changes for small businesses. 

Separately, there are some very favorable tax changes. Neither PPP funds nor EIDL grants are taxable. In addition, businesses may still deduct eligible expenses paid for with PPP or EIDL funds. Before EIDL grants were taxable and businesses could not deduct expenses paid for with PPP funds. Borrowers who got an EIDL grant had to deduct this from their PPP loan for forgiveness purposes, effectively saddling them with a loan for that amount. That will be eliminated retroactively.

The ability to subtract EIDL from PPP forgiveness (combined with the fact that SMBs can still deduct qualified expenses paid for with PPP/EIDL) means business owners will avoid a bigger tax bill and ultimately gain more value from stimulus funds.

3—Even if you received funds in the first round of PPP, you may qualify for a second loan.

Of course, new applicants are welcome as well as long as they qualify, but what if you already received PPP funding? Turns out, you may be welcomed back. Businesses that got a PPP loan in the first round can apply again so long as they are eligible.

Now, what if you returned portions of your loan? If you return all or part of your PPP loan, you may apply for an “amount equal to the difference between the amount retained and the maximum amount applicable.” Or, if you did not accept the full amount you may request a modification to allow you to borrow the full amount for which your business is eligible.

4—The maximum PPP loan amount for a single business is $2 million.

Down from the $10 million maximum loan in the CARES Act, the maximum loan amount for any business getting a second draw loan is $2 million. This means fewer businesses will get large loans that crowd out smaller businesses. For context, the total budgeted amount for these new PPP loans is just over $284 billion. And, as with the first round of PPP, businesses may be eligible for full forgiveness of these loans if proceeds are spent properly within a specific time period.

5—For full forgiveness, borrowers must spend the majority of the loan on payroll. 

Similar to the first round of PPP, this program is primarily intended to keep employees (including the business owner or independent contractor) on payroll. To obtain full forgiveness, borrowers will need to spend at least 60% of loan proceeds funding on payroll, specifically, compensation of up to $100,000 per employee plus payment of a variety of other compensation expenses including the newly added group life, disability, vision, or dental insurance.

While these are key takeaways from the PPP-specific terms of this Act, it’s worth noting that other forms of relief may be authorized as well. If approved, the Act will bring another $20 billion in new EIDL grants into play, offering up to $10,000 in funds that don’t have to be repaid. That includes businesses that may not have received the full amount in round one. From here, join me in crossing your fingers for speedy approval of this legislation, and cheers to what’s looking like a brighter 2021.

Gerri Detweiler is Education Director at Nav.

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