COVID-19 Webinar: Small Business Support to Boost Economic Recovery

Speakers: Burl Kelton, U.S. SBA and Frances Padilla, Colorado SBA District Director If you are a small business owner, you know that the last few weeks (just barely a month!) have been anxious, frustrating and hopeful. Congress has charged the U. S. Small Business Administration with the huge task of funneling sustaining funds of billions of dollars to small businesses and employees alike, in an effort to sustain them in a difficult and nearly impossible situation. Using the traditional SBA and bank partnership and the Disaster Assistance Office, the agency revamped programs in just days, and the billions of dollars of funding could move directly into the economy in a historical effort unmatched in the more than 50 years of the agency. Learn how the agency is supporting small business.

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Additional Resources and FAQ

Paycheck Protection Program: www.sba.gov/coronavirus
SBA Emergency Disaster EIDL: www.sba.gov (see top of screen)
SBA Disaster Assistance COVID EIDL: website pending, email: disastercustomerservice@sba.gov, telephone: 800-659-2955
SBA News Release: With $349 Billion in Emergency Small Business Capital Cleared, SBA and Treasury Begin Unprecedented Public-Private Mobilization Effort to Distribute Funds

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SBA CARES Act Paycheck Protection Program

Best resource: www.sba.gov/coronavirus [/content] [/paniniblock] [paniniblock heading=” Does applying for the EIDL preclude a business from the PPProgram? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] No. [/content] [/paniniblock] [paniniblock heading=” Can businesses apply for BOTH the EIDL loan and the PPP loan? ” styles=” ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:styles;type:text;label:Additional Styles|name:template;type:text;label:Block”] [content name=”content” label=”Content”] Yes. Apply for the short term emergency SBA Disaster Assistance EIDL (SBA.GOV), the long term SBA Disaster Assistance EIDL (updated website pending) and the Paycheck Protection Program (PPP) (local financial provider or bank). [/content] [/paniniblock] [paniniblock heading=” Can a business apply for a PPP and use that for payroll/payables/utilities and have that forgiven if it meets the criteria, then apply for an EIDL to buy components for the coming season? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] Visit sba.gov /coronavirus. [/content] [/paniniblock] [paniniblock heading=” If you take advantage of the cares act $10,000 loan can you still apply for the PPP? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] Yes. [/content] [/paniniblock] [paniniblock heading=” When will the PPP loan will be active and do you apply thru the SBA website similar to the 10K loan? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] You can apply through your local financial provider or bank after April 3, 2020. [/content] [/paniniblock] [paniniblock heading=” When will local SBA-preferred lenders be receiving guidance on PPP? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] Lenders may begin participating April 3, 2020. [/content] [/paniniblock] [paniniblock heading=” How will Shareholder Distribution be counted as income for the PPP grant/loan? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] Consult with your CPA. [/content] [/paniniblock] [paniniblock heading=” Are sole proprietor LLC’s or S-Corps with one employee(the owner) eligible for the EIDL or the PPP program?” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] Apply with the short term SBA Disaster COVID EIDL at, www.sba.gov using the link at top of the screen. Be sure to also consult your PPP banker and information at, www.sba.gov/coronavirus. [/content] [/paniniblock] [paniniblock heading=” Consult with Your PPP Financial Provider, Banker and/or CPA for details regarding these questions. ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”]

The PPP states from Feb 15 to June 15 – and that it’s a grant if I keep all employees. What if the number of employees decreases due to not having the income to support this. Will the grant turn into a loan? Example – I had 5 employees on payroll in March but I will most likely have 3 by June – If I take the PPP loan and pay for payroll April, May and June will I be accountable to pay this back in a loan or will it be under the grant?
Regarding PPP, if we already had layoffs, and don’t intend to replace those employee’s for reasons not linked to Covid-19, how does the forgiveness work?
If rent is paid using a company’s credit card, what type of documentation is necessary to satisfy forgiveness under PPP?
Should I apply for the PPP for employees and the CARES act SBA loan for rent etc? Or just CARES loan?
PPP is intended to support cash flow in order to maintain payroll. But is it applicable to support just a portion of my employees who are still on the payroll?
If you take a loan out that is only enough to cover the 8 week period of payroll, rent and utilities, will that loan in its entirety be forgiven?
How do we access the paycheck protection program?
Should I keep employees on payroll, even though we’ve let them all go from the Ski shop?
If hours for employees are reducedcould we still be eligible for the payroll loan?

[/content] [/paniniblock] [paniniblock heading=” Visit sba.gov /coronavirus for answers to these questions and more. ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”]

For the PPP loan program, how should seasonal businesses (like ski resorts) address the payrolls and loan forgiveness impact of seasonal employees.
Our company is owned by a company in Europe. We are incorporated in the US and employ 20 full time US staff. Are we eligible for PPP and EIDL?
For PPP loans, are independent reps considered employees (1099), or temps hired through an agency?
When do we expect more detail on the payroll protection plan?
Is a private organization registered as a nonprofit (non-charity) eligible for PPP?
Where can I find the most updated information on Paycheck Protection Loan vs Standard 7(a) SBA Loan?

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CARES Act SBA Disaster Emergency EIDL

[/content] [/paniniblock] [paniniblock heading=” How does the loan become a grant? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] If you demonstrate the business meets the requirements and make request. [/content] [/paniniblock] [paniniblock heading=” Would we be *required* to bring everyone back? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] See www.sba.gov/coronavirus and consult with your PPP banker or CPA. [/content] [/paniniblock] [paniniblock heading=” If you apply for PPP and still have to furlough SOME employees, is the forgiveness just proportional to who you were able to keep employed? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] Visit sba.gov/coronavirus for more details. [/content] [/paniniblock] [paniniblock heading=” Are 1099 employees eligible for the payroll grant? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] Independent contractors are eligible to apply for the short term SBA Disaster Assistance emergency EIDL loan/grant. Apply at, sba.gov and click on the yellow banner link at the top of the website. [/content] [/paniniblock] [paniniblock heading=” Should we reduce our payroll totals from 2019 by employee contributions to health care premiums? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] Consult with your CPA after reviewing the program at sba.gov/coronavirus. [/content] [/paniniblock] [paniniblock heading=” If I am the only full-time employee of my business and all of my employees are part-time, how does this affect the loan amount or loan forgiveness? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] Please visit sba.gov/coronavirus for more details about employee break downs. [/content] [/paniniblock] [paniniblock heading=” As a ski shop, my staffing needs cyclically decline at this time every year. How is that factored into the loan forgiveness? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] Visit sba.gov/coronavirus about the EIDL and for more information on the PPP consult your banker or CPA. [/content] [/paniniblock] [paniniblock heading=” Are both the Economic Injury Loan and the Paycheck Protection Program dually available or is it only one per business? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] Businesses may apply for one, two, or all three programs: PPP, short term emergency disaster assistance EIDL and long term disaster assistance EIDL. [/content] [/paniniblock] [paniniblock heading=” If my Sales Agencies has 1099 contractor what can I do for them? Can the Payroll Program work? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] Independent contractors may apply individually. [/content] [/paniniblock] [paniniblock heading=” The summary of the program that was communicated to me was that we can borrow up to 2.5x our average monthly payroll. If we maintain our payroll until June 30th the principal will be forgiven. I know there are specific requirements, but is that a general summary of the program? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] That is one aspect of the PPP. Visit sba.gov/coronavirus for more details. [/content] [/paniniblock] [paniniblock template=”basic/html” attribute-data=”name:template;type:text;label:Block”] [content name=”html” label=”Raw HTML”]

SBA Disaster short-term emergency EIDL

[/content] [/paniniblock] [paniniblock heading=” Why does it say that the $ 10,000 loan from EIDL does not need to be repaid? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] The loan can be converted to a grant if all fund usage requirements are met. [/content] [/paniniblock] [paniniblock heading=” Can you clarify the $10,000 program under CARES? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] It is a short term SBA administered emergency economic injury loan up to $10,000 based on the number of employees in the business. It is intended to be used for payroll and operating expenses. It may be converted to a grant if all requirements are met. [/content] [/paniniblock] [paniniblock heading=” For EIDLs, is early payback an option? Is there a penalty for early payback? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] There is no prepayment or early repayment penalty. [/content] [/paniniblock] [paniniblock heading=” Can you access the emergency economic injury grant funds even if you aren’t eligible for an EIDL loan? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] There are two SBA Disaster Assistance EIDL loans. They may be applied for separately, but you do need to be qualified and not an ineligible applicant. The long-term Disaster Assistance EIDL online portal is still being updated and will be available soon. The short-term Disaster Assistance emergency EIDL can be reached at: www.sba.gov with the link at the top of the screen. [/content] [/paniniblock] [paniniblock template=”basic/html” attribute-data=”name:template;type:text;label:Block”] [content name=”html” label=”Raw HTML”]

SBA Disaster long term COVID EIDL

[/content] [/paniniblock] [paniniblock heading=” How does the SBA determine the amount of an EIDL loan, and how do they determine the length of the term? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] The long-term SBA Disaster EIDL loan amount and term is set by SBA based on all available financial information from the business and in discussion with the owner. [/content] [/paniniblock] [paniniblock heading=” Does current Tax status affect eligibility? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] Discuss this with your Loan Officer in processing. [/content] [/paniniblock] [paniniblock heading=” Do you consider charitable organizations the same as non-profit organizations? Are non-profits of any kind eligible for EIDL? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] Charitable organizations and public non-profits (government or government services) are not eligible. [/content] [/paniniblock] [paniniblock heading=” Do 501(c)3 organizations qualify? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] Private non-profits are eligible. Church non-profits can only be of secular non-religious activity. Discuss with a Loan Officer if you have questions. [/content] [/paniniblock] [paniniblock heading=” We applied last week but did not receive an application number because of the SBA web portal issues. Should we re-apply? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] For the long term SBA Disaster EIDL loan status, call: 800-659-2955, or email: disastercustomerservice@sba.gov, until the website is available. You do not need to re-apply if your application is in the processing system. [/content] [/paniniblock] [paniniblock heading=” Would the long-term loan be forgivable? Such as a grant? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] At this time, the long-term SBA Disaster Assistance EIDL loan does not have a forgiveness component. [/content] [/paniniblock] [paniniblock heading=” Are assets pledged to secure the long-term loan? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] Collateral is not required in Phase I. [/content] [/paniniblock] [paniniblock heading=” Does a savings account that we have built up over time as a business exclude us from receiving approval? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] Generally, no. The Loan Officer can discuss any concerns you have about current savings. [/content] [/paniniblock] [paniniblock heading=” What are the rates and terms of EIDL loans? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] The short-term SBA Disaster emergency loan, if not converted to a grant, and the long-term SBA Disaster loans have interest rates of 3.75% for business and 2.75% for private non-profits. Both are simple, annual rates. [/content] [/paniniblock] [paniniblock heading=” What Financials are required for SBA disaster assistance? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] The short-term SBA Disaster emergency loan asks for previous year’s revenue total and previous year’s cost of goods. Also, additional income from other sources. No documentation is required with the application. The long-term requirements are being updated and will be available soon. [/content] [/paniniblock] [paniniblock heading=” What is the time limit on the application process? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] Deadline to apply is Dec. 31, 2020. [/content] [/paniniblock] [paniniblock heading=” If the same officer runs an S-Corp and a Non-Profit, can they each apply? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] Yes. They must be separate business entities. [/content] [/paniniblock] [paniniblock heading=” Can a foreign entity apply for the long-term loan? Would the size of the foreign HQ entity be added to the U.S. entities? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] The applying entity must be a U. S. company. You will need to discuss size limits and ownership issues with the Loan Officer. [/content] [/paniniblock] [paniniblock heading=” How quickly will funds disperse after application is approved? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] The short-term SBA Disaster emergency EIDL has a target turnaround of a few days for eligible funds. We will be working to disburse as soon as possible for the long-term SBA Disaster EIDL loans, once the site is operating with new CARES Act features. 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Seasonal Employers

[/content] [/paniniblock] [paniniblock heading=” In a seasonal business, employees have been on unemployment. When I ask them to return, some are choosing to stay home. They are looking for unemployment and the $600 weekly. At that point, no unemployment, correct? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] We don’t have any information about state unemployment programs. Contact your state agency. [/content] [/paniniblock] [paniniblock heading=” What if you are a seasonal business that will open May 15 but it appears that may not happen due to business closures for social distancing reasons? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] If you have employees and operating expenses to remain viable as a business, apply to all three programs, after consulting with your banker and/or CPA for the PPP. [/content] [/paniniblock] [paniniblock heading=” We employ 1099 contractors, are we allowed to pay them for lost work using an EIDL loan? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] Independent contractors may apply to both the short term and long term SBA Disaster EIDL. [/content] [/paniniblock] [paniniblock heading=” What if you employ both seasonal and non-seasonal employees? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] Visit sba.gov/coronavirus for more details about employee classifications. [/content] [/paniniblock] [paniniblock template=”basic/html” attribute-data=”name:template;type:text;label:Block”] [content name=”html” label=”Raw HTML”]

Other FAQs

[/content] [/paniniblock] [paniniblock heading=” Can a recently started business (less than one year old) qualify for any of this? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] Yes, if in business on Jan. 31, 2020. [/content] [/paniniblock] [paniniblock heading=” Is there a way to apply other than online? We have a member of our LLC with a more than 20% interest that is a non US national so they have an ITIN rather than a SSN for taxes. The SBA site keeps registering the ITIN as an error and I cannot proceed with the application. ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] Consult the Loan Officer if you are applying for the long-term SBA EIDL. Information may be added during loan processing. [/content] [/paniniblock] [paniniblock heading=” What are the declared disaster areas? Isn’t the entire country in the disaster area based on the President’s National Emergency decree? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] A separate disaster declaration is required for each state individually, requested by the Governor. [/content] [/paniniblock] [paniniblock heading=” What if this goes longer than June? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] The long-term SBA Disaster EIDL is designed for long term recovery. The deadline for application for the long-term EIDL is December 31, 2020. [/content] [/paniniblock] [paniniblock heading=” Should employees/owners be filing for state unemployment, and how would that effect any assistance going forward? Assuming all/most employees would be retained. ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] Consult with your state agency regarding unemployment programs and visit sba.gov/coronavirus. [/content] [/paniniblock] [paniniblock heading=” Can you use disaster assistance loan for a termination of lease/eviction negotiation? ” template=”basic/accordion” attribute-data=”name:heading;type:text;label:Heading|name:template;type:text;label:Block”] [content name=”content” label=”Content”] That would be the business owner’s decision. [/content] [/paniniblock] [/panini-column] [/panini-row]