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Congress has passed the Coronavirus Aid, Relief, and Economic Security (CARES) ACT which includes provisions for small businesses. Updates (including application processes) are provided as received.
Express Bridge Loans (Express Loan )
SBA Debt Relief: (7(a) Loan Payment)
- The SBA will automatically pay the principal interest, and fees of current 7 (a) loans for a period of six months.
- The SBA will also automatically pay the principal interest, and fees of new 7 (a) loans issues prior to September 27, 2020.
Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.
SBA is processing EIDL applications as quickly as possible. SBA will provide those whose applications are approved with loans that will cover the business’s short-term working capital needs.
This is in addition to the EIDL Advance that small businesses and non-profits are eligible to receive as a result of the CARES Act.
PPP and EIDL eligibility can be found below. To calculate the amount which can be received, go to calculator.
Payroll Protection Program from Banks (Secured by SBA)
Here are the details about the Payroll Protection Program (PPL).
***If you are interested in this loan, we suggest that you submit your initial application as soon as possible, then email our office for answers to any questions not answered on this website.
- Applications can be submitted until June 30, 2020
- Your business must be experiencing a business loss due to COVID-19
- Your business is small
- Your business was in operation on February 15, 2020 (excluding mandated closures)
- You were a sole proprietor/independent contractor/self- employed as of February 15th See below for additional guidance
- Interest rates: 1% fixed rate
- Term - two years, payments deferred for the first six months (interest will accrue)
- No collateral or personal guarantee requirement
- Loan Amount can be for up to two months of your average monthly payroll costs from the last year plus an additional 25% of that amount which was used for interest of mortgage obligations, rent. or utility payment made before February 15, 2020. The total amount of the loan is subject to a $10 million cap. If you are a seasonal or new business, you will use different applicable time periods for your calculation. (click webinar for details) Payroll costs will be capped at $100,000 annualized for each employee or Business owner filing as sole proprietors/indepedent contractors.
- Forgiveness Rules - You will owe money when your loan is due if you use the loan amount for anything other than payroll costs, mortgage interest, rent, and utilities payments during the 8 weeks after getting the loan. You will also owe money if you do not maintain your staff and payroll. See Business Example (click Paycheck Protection Forgiveness). For additional Paycheck Protection Forgiveness instruction click here for the video link.
***We suggest that you submit your application as soon as possible, then email our office for answers to any questions not answered on this website.
First, watch this click webinar which is an overview of the PPPL program.
You should also watch this click webinar answering frequently asked questions from single person businesses about the PPPL.
Second, complete the PPP application .
Third, you may submit to any of the banks processing the loans , but the Columbia-Harlem SBDC has developed relationships with the following banks which are processing banks which are processing PPP Loans:
Fourth, for all clients, after submitting application, clients should email [email protected] to notify us of your application so that we can follow up with bankers and advocate on your behalf.
Fifth, gather the information on the list below. After receiving your application, bankers will request:
- Your 2019 Tax Return
- 2020 Jan - March Bank Statements
- 2019 - 2020 Monthly Point-of-Sales Reports (Paypal, Square, Stripe, Venmo, or any other form of sales records)
- 2019 Quarterly Sales Tax
- Sole Proprietors/Independent Contractors/Self Employed Individuals must submit documentation as is necessary to establish eligibility such s payroll processor records, payroll tax filings or Form 1099 - Misc or income and expenses from a sole proprietorship. For borrowers that do not have such documentation, the borrower must provide other supporting documentation, such as bank records, sufficient to demonstrate the qualifying payroll account.
- Payroll Form or Profit & Loss Statements for twelve months (If you do not have a payroll report, use attached spreadsheet to create one/can also calculate forgivable amount).
***Please see Payroll Tool click here.
***Before emailing our office with additional questions read FAQ click here.
SELECTING THE RIGHT PROGRAM - PPP/EIDL (Read more about EIDL Program below)
Apply for both if they are applicable, click webinar. EIDL is for 6 months of operating expenses (including payroll). PPPL is for 8 weeks of payroll (plus 25% for operating).
If you get both loans, do not use funds for the same expense. Deposit the funds into separate accounts and pay the expenses out of the corresponding accounts. That way you can prove the fund utilization for the PPP forgiveness and will create a paper trail to show that there was no double dipping.
PAYROLL PROTECTION PROGRAM
FORGIVABLE IF USED FOR PAYROLL
(MINIMUM OF 75% OF THE FUNDS RECIEVED)
AND REMAINING FOR CERTAIN OPERATING
EXPENSES(AMOUNT OF ANY EIDL ADVANCE IS
full eidl loan
To meet financial obligations and operating
expenses that could have been met had the
disaster not occurred
(amount of any EIDL advance is forgiven)
UP TO $10 MILLION
UP TO $2 MILLION
3.75% FOR BUSINESSES
2.75% FOR NON-PROFITS
YES -EIDL ADVANCE
|MATURITY||2 YEARS||30 YEARS|
|DEFERRED 6 MONTHS||DEFERRED 1 YEAR|
Emergency Economic Injury Disaster Loan Advance from US Treasury (Forgivable) (EIDLA)
Economic Injury Disaster Loan “EIDL” Applicants are eligible for an advance of $1000 per employee, up to $10,000 to provide economic relief if you are currently experiencing a temporary loss of revenue. This loan advance will not have to be repaid even if the grantee is subsequently denied an EIDL. The advance may be used to maintain payroll, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments.
Eligible recipients must have been in operation on January 31, 2020.
If you receive an EIDL between January 31, 2020 and June 30, 2020 as a result of a COVID-19 disaster declaration, you are eligible to apply for an additional Payroll Protection Program Loan (“PPP”) or the business may refinance their EIDL into a PPP loan. In either case, the emergency EIDL grant award of up to $10,000 would be subtracted from the amount forgiven in the Paycheck Protection Plan. To Apply, complete the application requirements for the EIDL (below).
SBA Coronavirus Economic Injury Disaster Loan (EIDL)
SBA is offering low-interest federal disaster loans for working capital to (a) small businesses or (b) private nonprofit organizations that are suffering substantial economic injury as a result of the Coronavirus.
- Your business must be experiencing a business loss due to COVID-19
- Loan amount will be approximately six months of operating expenses, including payroll
- Maximum unsecured loan amount is $25,000, Maximum secured amount is $2M
- Interest rates: 3.75% for small business; 2.75% for private nonprofits
- Term – up to 30 years
- Use of funds: working capital, paying fixed debts, payroll, accounts payable, other bills that could have been paid had the disaster not occurred
- Loans are NOT intended to replace lost sales or profits or for expansion
- There is no obligation to take the loan if offered
- Applicants can have an existing SBA loan or other SBA loan and still qualify for this disaster loan. Loans cannot be consolidated.
- Acceptable credit history
- Proven ability to repay the loan
- Collateral for loans over $25,000
If your business is located in Upper Manhattan or the South Bronx, we can help guide you through this loan process from loan application through funds disbursment. Click here to become a client of the Columbia Harlem SBDC, services are provided at no cost to business owners.
If your business is located in another location in New York State, you can find no cost help from another regional center in our network, click here for a directory.
First, review this webinar which will explain how to complete the forms you will need to apply for the loan.
Third, gather or complete the following forms for submission to the SBA:
- Completed SBA loan application Form 5c
- IRS Form 4506-T completed and signed
- Instructions for completing IRS Form 4506
- A complete copy of the most recently filed Business Federal Income Tax return – all pages
- Schedule of Liabilities (SBA form 2202)
- Instructions for completing the Schedule of Liabilities
- Personal Financial Statement (SBA form 413D)
- Completed copy, including all schedules, of the most recent personal Federal income tax returns
- Current year-to-date profit and loss statement
- Profit & Loss Statement for twelve months (If you do not have a payroll report, use attached spreadsheet to create one/can also calculate forgivable amount).
- If you do not have completed 2019 business tax returns, submit year-end profit and loss statement and balance sheet for 2019.
- Monthly Sales (SBA form 1368)
- EIDL Additional Requirements (SBA Form 1368)
- EIDL Supporting Information Form (ODA Form P-019)
- Look for a message confirming receipt of your application from the SBA. It may be email, snail mail or robo-call. Also check your SPAM and Junk folders
- Check for communication from loan processors daily once communication has been established. You will have to submit the forms gathered and completed.
- Be sure to sign in all of the appropriate places
- Keep these documents saved where you can easily access them.
- Other programs that may become available will likely ask you for these same documents.
- Answer honestly
- To reach the SBA Customer Service Center, call 1-800-659-2955 or (TTY: 1-800-877-8339) or email [email protected]