COVID-19 Relief for Small Business: West Virginia District Office
Summary
Slide presentation of the SBA West Virginia District Office on COVID-19 relief for small business. It says the SBA cannot accept new Economic Injury Disaster Loan applications for now, and that submitted applications are processed first-come, first-served. A Paycheck Protection Program update for round 2 as of April 29 reports 960,000 approved loans, with small and medium lenders accounting for 82% of approved loans and 70% of dollar value. The average round 2 loan is less than $95,000, against a first-round average of $206,000.
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COVID-19 Relief for
Small Business
West Virginia District Office
wvinfo@sba.gov
www.sba.gov/wv
Email Updates sba.gov/updates
SBA Customer Service (24/7) : 800 - 659 - 2955
Economic Injury
Disaster Loans
SBA Disaster Customer Service Center
(800) 659-2955
Deaf or hard-of-hearing
(800) 877-8339
Economic Injury Disaster Loan
(EIDL) – COVID-19
• SBA is unable to accept new applications at this time.
• Sign up for sba.gov/updates and we’ll alert you when it does.
• Applicants who have already submitted their applications will continue
to be processed on a first-come, first-served basis.
• Check status with Customer Service (24/7) at 800-659-2955.
• If your loan is not in that system, that only means that your application
has not been assigned to a specific processor. It is still, however, being
processed.
West Virginia District Office 3
You should get an email like this…
West Virginia District Office 4
Paycheck
Protection
Program
PPP Update
Round 2 as of April 29
Loans Dollars
Small Lenders 587,000 $43B
Medium Lenders 206,000 $20B
Large Lenders 167,000 $27B
TOTAL 960,000 $90B
• Small and medium sized lenders represent 82% of approved loans
and 70% of dollar value.
• The average loan size less than $95,000 (first-round average =
$206,000).
West Virginia District Office 6
Loan Amounts
8 Weeks
75%
• Salary, wages, commissions, tips
• Employee benefits
• State and local taxes
25%
• Rent (real and personal)
• Utilities (electricity, water, gas, telephone, internet)
• Interest on mortgage/other business debt obligations
West Virginia District Office 7
Business Payroll Calculation
For Most Businesses with Employees
• Payroll tax reports filed (941s and 940)
• State unemployment tax reports/self-employment tax
• Local employment taxes
• Payroll reports
• Gross wages include paid time off, group health insurance premiums ,
retirement plan funding by the employer
Yearly Gross Wages minus Cash Compensation over $100K (yearly) = $120,000
Divide by 12 = $10,000 your monthly average
Multiply by 2.5 = $25,000
PPP Loan Amount = $25,000
West Virginia District Office 8
Sole Proprietors
With No Employees
• Use IRS Form 1040 Schedule C line 31 net profit amount.
• If you have not yet filed a 2019 return, fill it out and compute the
value.
• If this amount on Line 31 is zero or less, you are not eligible for a
PPP loan.
Schedule C Line 31 net profit amount = $30,000
Divide by 12 = $2,500
Multiply by 2.5 = $6,250
PPP Loan Amount = $6,250
West Virginia District Office 9
Lenders Will Verify
Documentation
1. Your business was in operation on February 15
2. Your business had employees (if not sole proprietor)
3. You had average monthly “payroll costs”
West Virginia District Office 10
Forgivable
3 Conditions
1. Loan proceeds covered approved costs
2. Employee numbers maintained
3. Compensation levels are maintained
• Apply in writing
• Lender has 60 days to respond.
West Virginia District Office 11
Important Notes
1. Documentation must be presented to the Lender.
2. Your lender may require more or less information.
3. Each borrower is certifying that the documentation is true and
correct.
4. There will be no forgiveness if the documentation is not
presented.
5. The amount of any loan forgiveness under this program is NOT
taxable income.
West Virginia District Office 12
If Your Loan Is Not Forgiven
• 2-year repayment term (18 months + 6 months deferral)
• 1% interest rate
• 6 months deferral
• Interest will accrue 6-month period
• No prepayment penalties
West Virginia District Office 13
Question Economic Injury Disaster Loan Payroll Protection Program
Application
covid19relief.sba.gov/#/ Contact your lender
Eligibility Under 500 employee and a: Under 500 employers and a:
• Small Business • Small Business
• Sole Proprietor • 501c3 Nonprofit
• Cooperatives includes agricultural • 501c19 Veteran’s Organization
cooperative • 31b2C Tribal Business
• Employee Stock Ownership Plan (ESOP) • Sole proprietorship
• Tribal small business • Self-employed
• Aquaculture and nursery business • Independent contractor
• 501(c), (d), or (e) nonprofits • Faith-based organization
• State-based private non-profit
• Faith-based organization
• Business under SBA Size Standards
Approved Working Capital, which includes: • 8-Weeks of payroll costs
Uses • Fixed debts (rent, utilities, etc.) • Rent, Utilities, Interest on Debts
• Payroll
• Accounts payable
• Some bills that could have been paid had
the disaster not occurred
Terms • 3.75% • Forgivable if used for 75% payroll costs
• Up to 30 years and 25% for rent, utilities, interest costs
• If not forgiven, 1% interest for 2 years
Payments
In 12 months In 6 months (if not forgiven)
Begin West Virginia District Office 14
SBA Debt Relief
Current Debt Relief
The SBA Debt Relief program will provide a reprieve to small businesses
as they overcome the challenges created by this health crisis.
The SBA will pay 6 months principal and interest of
1. Current 7(a) loans
2. New 7(a) loans issued prior to Sep 27, 2020
3. 504 loans (lender portion)
4. SBA microloans
Contact your lender to get in line.
West Virginia District Office 16
Quick Links
• Find an Eligible Lender
• PPP Borrower Information
• PPP Borrower Application
• PPP Lender Information
• Faith Based Information
• Economic Injury Disaster Loan & Advance Information
West Virginia District Office 17
West Virginia District Office
wvinfo@sba.gov
www.sba.gov/wv
Email Updates sba.gov/updates
SBA Customer Service (24/7) : 800 - 659 - 2955
File and source
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- EIDL_and_P3_4.30.2020-Town_Hall_2_PPP.pdf
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- Original
- www.sba.gov