EIDL Loan Overview, PPP Loan Overview and Resource Partners (SBA file date: July 24 2020)
Summary
This U.S. Small Business Administration slide deck from the Houston District Office gives an overview of EIDL and PPP loans and SBA resource partners. It says the EIDL program expires on December 21, 2020 and that as of July 11, 2020 SBA stopped processing EIDL Advance requests because program funds had been fully allocated, while loan applications were still processed. EIDL terms are 3.75% interest for small businesses and 2.75% for private non-profits, with up to 30 years to repay and no payments for one year from the date of note. For the Paycheck Protection Program, the deck gives an application deadline extended to August 8, 2020 and lists seven changes made by the Flexibility Act of June 5, 2020, including a 24-week covered period and a payroll share cut from 75 percent to 60 percent. Its FAQ says EIDL loans are not forgiven, but the Advance is a grant.
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U.S. Small Business
Administration
Agenda
• EIDL Loan Overview
• PPP Loan Overview
• Resource Partners
• Additional Resources
• FAQs
Economic Injury Disaster Update
• Available for all eligible small businesses.
• Expires on December 21, 2020.
• As of July 11, 2020, SBA stopped processing EIDL Advance requests,
because program funds have been fully allocated. EIDL loan
applications will still be processed, even though the Advance is no
longer available.
• Applicants who have already submitted their applications will
continue to be processed on a first-come, first-served basis.
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ELIGIBILITY
• Small business owners and qualified agricultural businesses in all
U.S. states and territories are currently eligible to apply for a low-
interest loan due to Coronavirus (COVID-19).
• Agricultural businesses includes those businesses engaged in the
production of food and fiber, ranching, and raising of livestock,
aquaculture, and all other farming and agricultural related
industries.
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Economic Injury Disaster Loans (EIDL)
3.75% interest rate for small businesses; 2.75% for private non-profits.
Long-term repayments up to 30 years
May be used for fixed debts, payroll, accounts payable and other bills affected by the disaster
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EIDL Repayment
• No payments on EIDL loans for one year from date of note.
• Applicant will receive amortization schedule after loan is funded
from the servicing department.
• Usually, applicant will be notified before applicant’s bank account
on file will be debited for payment.
• Applicant can also request to pay by mail or online payments.
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How to Apply for EIDL
• The website for applying for EIDL is www.sba.gov/disaster
• You may also contact the SBA Disaster Customer Service Center
(M - F 8:00 am to 8:00 pm, Sat/Sun 8:00 am to 5:00 pm Eastern Time)
• 1-800-659-2955
• E-mail: disastercustomerservice@sba.gov
• TTY: 1-800-877-8339
• If denied:
• You get six months to provide a written reconsideration request with new
supplemental information.
• If denied a second time, you get an additional 30 days to appeal.
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Application
The website for applying for EIDL is www.sba.gov/disaster
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Application
The website for applying for EIDL is www.sba.gov/disaster
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Application
The website for applying for EIDL is www.sba.gov/disaster
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Application
The website for applying for EIDL is www.sba.gov/disaster
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Application
The website for applying for EIDL is www.sba.gov/disaster
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Application
The website for applying for EIDL is www.sba.gov/disaster
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Application
The website for applying for EIDL is www.sba.gov/disaster
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Payroll Protection Program (PPP)
• Application deadline extended to August 8, 2020.
• Must apply through a participating lender.
• List of lenders located at www.sba.gov/tx/houston.
• SBA will forgive up to 100% of the loan proceeds if used to cover (8)
weeks or (24) weeks of eligible expenses, once the loan is disbursed.
Covered Period cannot exceed December 31, 2020.
• Payroll expenses
• Rent and lease expenses
• Utility expenses (electricity, gas, water, telephone, transportation and
internet access)
• Mortgage and other interest expenses
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Flexibility Act of June 5, 2020
(Seven Changes)
1. Extends the covered period for loan forgiveness from 8 weeks after loan disbursement to 24 weeks.
• Borrowers who have already received PPP loans retain the option to use an eight-week covered period.
2. Lowers the requirement that 75 percent of a borrower’s loan proceeds must be used/spent for
payroll costs during the loan forgiveness covered period to 60 percent for each of these
requirements.
3. Provides a safe harbor from reductions in forgiveness, based on reductions in full-time equivalent
employees, for borrowers that are unable to return to the same level of business activity prior to
February 15, 2020, due to compliance with requirements/guidance between March 1, 2020 and
December 31, 2020 by the:
• Secretary of Health and Human Services
• Director of the Centers for Disease Control and Prevention
• Occupational Safety and Health Administration, related to worker or customer safety requirements related to
COVID–19.
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Flexibility Act of June 5, 2020
(Changes 4-7)
4. Provides a safe harbor from reductions in loan forgiveness based on reductions in full-
time equivalent employees…
• unable to rehire individuals who were employees of the borrower on February 15, 2020
• unable to hire similarly qualified employees for unfilled positions by December 31, 2020.
5. Increases to five years the maturity of PPP loans that are approved by SBA (based on the date
SBA assigns a loan number) on or after June 5, 2020.
• For loans before that time; contact your lender to see if they will adjust to the 5-year term.
6. Extends the deferral period for borrower payments of principal, interest, and fees on PPP
loans to the date that SBA remits the borrower’s loan forgiveness amount to the lender
• or, if the borrower does not apply for loan forgiveness, 10 months after the end of
the borrower’s loan forgiveness covered period.
7. Removed the restriction of participating in the deferment (employer portion) of social security
payroll tax if you received a PPP loan. Now you can defer through December 31, 2020 and pay
the balance deferred 50% on December 31, 2021 and 50% on December 31, 2022.
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Loan Details
• No collateral required
• No personal guarantees required
• No fees charged to the Borrower
• Payments are deferred
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Resource
Partners
Important Non-Monetary Assistance from SBA
SBA has three local Resource Partners
• Texas Gulf Coast Small Business Development Centers (SBDC)
• SCORE Mentors
• The WBEA Women’s Business Center (WBC)
A range of help during the downturn, to include:
• Cash Flow Management
• Messaging and Social Media
• Import/Export
• Supply Chain Issues
• Strategic Planning
• Risk Management and Insurance Counseling
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Contact Information
Small Business Development Center
• PHONE: 713-752-8444
• WEBSITE: www.sbdc.uh.edu
Houston SCORE
• PHONE: 713-487-6565
• WEBSITE: www.houston.score.org
Women’s Business Center
• PHONE: 713-681-9232
• WEBSITE: www.wbea-texas.org/womens-business-center
U.S. Small Business Administration
• PHONE: 713-773-6500
• SIGN-UP FOR EMAIL UPDATES: www.sba.gov/tx/houston
• FOLLOW US ON TWITTER: @SBA_Houston
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Additional
Resources
Additional Resources
• Visit with your existing bank
• The LiftFund Program
• Texas Restaurant Association Grant Program
• Check your local EDC (ex.- Galveston EDP Short-term Loan Program)
• Brazos Valley Community Relief Grant
• Harris County Small Business Recovery Fund
• U.S. Chamber of Commerce ‘Save Small Business Fund’
• Allied Arts Grant program for artists
• Hello Alice COVID-19 Grant
• Non-Profit Organization Assistance
• Visit your local Chamber of Commerce
• Houston Business Development, Inc.
• Fort Bend County Grant Program
• Small Business Development Center Website under COVID-19 Grants
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Frequently
Asked
Questions
Questions
• Visit www.sba.gov/tx/houston, under Webinar Schedule and
Presentations:
• For a copy of this slide deck
• Houston District SBA lender list
• Can I check status of my EIDL application?
• 1-800-659-2955 or disastercustomerservice@sba.gov
• Are EIDL loans forgiven?
• NO, but the Advance* is a grant (is forgiven)
* PLEASE NOTE: As of July 11, 2020, SBA stopped processing EIDL Advance requests, because program funds have been fully allocated.
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Questions
• Can I apply for both EIDL and PPP?
• YES; however, you cannot duplicate costs.
• I have already submitted my PPP application. Can I submit for
the EIDL loan?
• YES, just don’t duplicate costs included in the EIDL.
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Questions
• Are faith-based organizations, including houses of worship, eligible to
receive SBA loans under the EIDL program?
• Yes, and we additionally clarify that faith-based organizations are eligible to
receive SBA loans regardless of whether they provide secular social services.
That is, no otherwise eligible organization will be disqualified from receiving
a loan because of the religious nature, religious identity, or religious speech of
the organization.
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Questions
• I received an email with an SBA logo. How do I know it is real?
• If its from the SBA it will have a .gov email address
• Someone contacted me promising they can get me approved
and move me to the head of the line – for a fee. Is this real?
• Suspect fraud!
• Report any suspected fraud to OIG’s Hotline at 800-767-0385 or online at
https://bit.ly/2UxdAhL
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For questions about your specific situation
• For the EIDL Loan - SBA Disaster Customer Service:
• 1-800-659-2955
• TTY: 1-800-877-8339
• E-mail: disastercustomerservice@sba.gov
• Reach out to one of our Resource Partners for general guidance:
Texas Gulf Coast SBDC Houston SCORE Women’s Business Center
713-752-8444 713-487-6565 713-681-9232
www.wbea-texas.org/womens-
www.sbdc.uh.edu www.houston.score.org business-center
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References and Guidance
• IFR 136/Borrower (5/22/2020)
https://home.treasury.gov/system/files/136/PPP-IFR-Loan-Forgiveness.pdf
• HR7010 - ‘Paycheck Protection Program Flexibility Act of 2020’ (6/5/2020)
https://www.congress.gov/bill/116th-congress/house-bill/7010
• 19th IFR – 13 CFR Part 120 (6/17/2020)
https://home.treasury.gov/system/files/136/PPP-IFR--Revisions-to-the-Third-and-Sixth-
Interim-Final-Rules.pdf
• 20th IFR – 13 CFR Part 120 (6/22/2020)
https://home.treasury.gov/system/files/136/PPP--IFR--Revisions-to-Loan-Forgiveness-
Interim-Final-Rule-and-SBA-Loan-Review-Procedures-Interim-Final-Rule.pdf
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“A dream doesn’t become reality through
magic; it takes sweat, determination and hard
work.” -Colin Powell
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Questions
File and source
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