Links for Small Businesses

jdhu

jdhu

Well-known member
I prepared updated federal and state assistance programs, current as of April 5. I'm just pasting the emails I sent to my clients and can't attach the referenced PDFs. Feel free to PM me and I can email.


Below (and attached as word doc) are updated federal assistance programs (current as of April 5, 2020). Some of this I've already briefed you on, but there have been updates. Also attached are two PDFs with information about applying for the Payment Protection Program and the Express Bridge loan (may not apply to you; it's for companies with existing borrowing relationships with SBA-approved express lenders).

Please take a good look and let me know if you think one or more loans might be an option for you; if so, I can look more into it. Also, please check carefully, as some loans have different requirements than others, and some are forgivable!

As always, let me know if you have any questions. Thank you.

Jimy





https://www.sba.gov/funding-program...elief-options/paycheck-protection-program-ppp

(PPP)

1. Loan for businesses up to 500 employees

2. FORGIVABLE loan (100%) if the loan is used for payroll costs, interest on mortgages, rent, utilities

a. At least 75% must be used on payroll

b. Forgiveness decreased if full-time employee headcount declines, or if salary/wages are reduced

c. Two-year maturity, 1% interest

3. Apply through any FDIC lender

a. See attached application form for information and requirements





https://www.sba.gov/disaster-assistance/coronavirus-covid-19

https://covid19relief.sba.gov/#/

SBA disaster assistance loan (all states)

(second link is application)

1. Available to small businesses in all states

2. Up to $2 million (non-forgivable)

a. Interest rate is 3.75%

b. Repayment terms determined on case-by-case basis (up to 30-year plan)





https://www.sba.gov/funding-program...onomic-injury-disaster-loan-emergency-advance

https://covid19relief.sba.gov/#/

1. Emergency disaster assistance loan of up to $10,000

2. Funds immediately available following successful application

3. Loan advance need NOT be repaid!



https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/sba-express-bridge-loans

SBA Express Bridge Loan

1. Up to $25,000, fast turn around loan

2. Small business borrower MUST have existing business with SBA Express lender

3. PDF attached (long); if you have a lender already, call them to see if they are an SBA Express Lender



https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/sba-debt-relief

SBA Debt Relief on existing loan (7(a), 504 and microloans)

1. https://www.thebalancesmb.com/getting-an-sba-7-loan-for-small-business-398040

a. Explanation of 7(a) loan

2. https://www.sba.gov/brand/assets/sba/sba-lenders/504-Loan-Fact-Sheet-Borrower-Version.pdf

a. Explanation of 504 loan

3. https://cdcloans.com/lender/504-7a-loan-comparison/

a. Explanation of differences between 504 and 7(a) loans

4. https://www.sba.gov/loans-grants/see-what-sba-offers/sba-loan-programs/microloan-program

a. Explanation of microloans (up to $50,000)

5. If a small business has any of the above loans already, OR obtains one prior to September 27, 2020, SBA will automatically pay principal, interest, and fees (so-called debt relief)





https://www.irs.gov/newsroom/payment-deadline-extended-to-july-15-2020

IRS Filing Deadline extension (July 15, 2020)
 
jdhu

jdhu

Well-known member
State assistance, current as of April 5, 2020.

This email contains updated State of California assistance programs. I also included the Facebook grant link again. The main update from last email about state assistance is increased funding for the "ibank" loan, a portal for workers to find new work ("onwardca.org" link, and sales tax deferral.



https://www.ibank.ca.gov/small-business-finance-center/

State loans for small businesses (including for those who cannot obtain federal loans)

1. Businesses with 1-750 employees eligible

2. Loans guaranteed by state (85% - 95%)



https://www.gov.ca.gov/2020/04/02/g...all-businesses-workers-displaced-by-covid-19/

Summary of state assistance, including deferment of sales and use taxes up to 12 months



https://www.edd.ca.gov/Unemployment/Work_Sharing_Program.htm

EDD Work Sharing program (benefits for workers with reduced hours while still employed)



https://onwardca.org/

Resource for workers to find new jobs and obtain essential life services



https://www.facebook.com/business/boost/grants

Facebook private grant for small businesses
 
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Archimedes

Archimedes

Fire Watcher
two wheel tramp said:
This is great Jimmy! I applied on behalf of our company and now we wait.
Click to expand...

Where did you apply? Our bank is putting us down the pecking order because we don't have a loan with them. We've been searching for other banks in the area that are processing the applications, but no luck so far.
 
two wheel tramp

two wheel tramp

exploring!
Archimedes said:
Where did you apply? Our bank is putting us down the pecking order because we don't have a loan with them. We've been searching for other banks in the area that are processing the applications, but no luck so far.
Click to expand...

I twisted the owner's arm and made him open an account with First Republic about seven years ago. They are not our primary bank but we do have a long relationship with them. Unless you were a client on 2/15/20 they will not work with you. I applied for a PPP loan over the weekend via email. Easy. They are not normally an SBA lender but they are handling PPP.

The SBA EIDL application you fill out directly on the SBA website. That puts you in line to complete a more detailed loan application and decide an amount later on. The 10K you receive is a grant whether or not you are approved for the later loan.
 
Archimedes

Archimedes

Fire Watcher
two wheel tramp said:
I twisted the owner's arm and made him open an account with First Republic about seven years ago. They are not our primary bank but we do have a long relationship with them. Unless you were a client on 2/15/20 they will not work with you. I applied for a PPP loan over the weekend via email. Easy. They are not normally an SBA lender but they are handling PPP.
Click to expand...

Yeah, we're with Citibank, but since we only have a banking relationship and not a lending relationship, we have to wait until the lender clients get first bite at the apple. Pretty interesting that the Feds open up a program that uses taxpayer dollars and then uses the private banks to distribute it and allows them to decline or delay certain businesses from participating.
 
two wheel tramp

two wheel tramp

exploring!
Archimedes, I was SO happy when I saw the FR would be administering the PPP. Wells Fargo is taking their sweet time plus I hate them.
 
Archimedes

Archimedes

Fire Watcher
Yes, but as far as I can tell, the Fed hasn't done anything yet. They've only said they're going to create an agency to handle loans directly. I haven't seen any announcement that they're accepting applications yet. When they do, I expect their website will go down within minutes of going online...
 
Archimedes

Archimedes

Fire Watcher
jdhu said:
Isn't the loan adminstered by SBA, through banks? Not Fed?
Click to expand...

Yes, but the banks aren't getting it done very efficiently, so the Fed said they are going to create a quasi agency to process the loans. I'm not holding my breath.
 
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