EIDL Overview, PPP Overview and CARL Overview
Summary
This U.S. Small Business Administration slide deck, from its Houston District, gives overviews of Economic Injury Disaster Loans, the Paycheck Protection Program and the Community Advantage Recovery Loan (CARL) pilot program. It says that as of July 11, 2020 the SBA stopped processing EIDL Advance requests because program funds were fully allocated, and that EIDL loans carry a 3.75% rate for small businesses and 2.75% for private non-profits. It notes the PPP application deadline was 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 60 percent payroll requirement. CARL loans have a maximum of $250,000 and must be fully disbursed before October 1, 2020; the deck lists the CARL lenders as of 7/27/2020 and Houston resource partners.
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U.S. Small Business
Administration
Agenda
• EIDL Overview
• PPP Overview
• CARL Overview
• Resource Partners
• Additional Resources
• FAQs
Economic Injury Disaster Loan 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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Community Advantage Recovery Loans (CARL)
Purpose: The Community Advantage Recovery Loan Program (CARL) is
a pilot program to increase SBA-guaranteed loans to small businesses in
underserved areas.
The new program will provide technical and financial assistance to
small businesses located in underserved markets. It is intended to help
these small businesses revamp their operations for the COVID-19
environment and/or to build financial resiliency against future
disruptions.
Target Applicant: Underserved Markets within approved CA lender’s
defined territory.
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Community Advantage Recovery Loan Program
• Maturity Date/Loan Term: minimum 5-year
• CARL Maturity must match the use of proceeds – NO short-term loans!
• Maximum Loan Amount: $250,000
• P&I Payments: for first six months of CARL loan will be paid by SBA
under Section 1112 of CARES Act.
• Loan Disbursement Period: Must be originated no later than
September 27, 2020 and fully disbursed before October 1, 2020.
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Community Advantage Recovery Loans (CARL)
• Technical Assistance (TA) Requirements:
• Community Advantage (CA) lender may begin TA 30 days prior to loan
approval and must be completed during the first 6 months of the loan term.
• May be provided by or on behalf of the CARL Lender.
• Must be tailored to the subject business and may include, but is not limited to:
• retooling the applicant business model for a COVID-19 environment;
• shifting to an online presence;
• building cash reserves; and
• expense reduction strategies.
• Minimum of 15 hours Technical Assistance is required (FREE to the client).
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Community Advantage Recovery Loans (CARL)
• CARL loans are eligible for Section 1112 subsidy relief
• P&I payments for first six months of CARL loan will be paid by SBA under
Section 1112 of CARES Act.
• The borrower is eligible for Section 1112 Payments of P&I plus fees when
the loan is “fully disbursed” in “Regular Servicing”.
• The loan must be approved by September 27, 2020 and be fully disbursed
before October 1, 2020. The following month the lender can submit the
request to SBA.
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Current List of CARL lenders
As of 7/27/2020
Lender
Lender Name State
CDC Small Business Finance Corporation CA
Justine Petersen Housing & Reinvestment Corporation MO
LiftFund, Inc. TX
Metropolitan Economic Development Association MN
Mountain West Small Business Finance UT
Natural Capital Investment Fund, Inc. WV
PeopleFund TX
PHONE: 888-215-2373
Trenton Business Assistance Corporation NJ
BSD Capital LLC dba Lendistry CA
Colorado Enterprise Fund CO
WEBSITE: www.liftfund.com
Flagship Enterprise Center, Inc. (dba Bankable) IN
Montana Community Development Corp. MT
Northern Economic Initiative Corp. MI
West Central Development Corporation OH
Brightbridge, Inc. TN
Community Investment Corporation CT
Evergreen Business Capital WA
First State Community Loan Fund dba True Access DE
Growth Capital Corporation OH
Main Street Launch CA
Milwaukee Economic Development Corporation WI
Mountain Bizcapital, Inc. NC
PCR Small Business Development CA
Small Business Assistance Corporation GA
PHONE: 888-222-0017
TruFund Financial Services Inc NY
Union County Economic Development Corporation NJ
Wisconsin Women's Business Initiative Corporation WI
Accion (DreamSpring)
Fresno Community Development Financial Institution
Florida Business Development Corporation
NM
CA
FL
WEBSITE: www.peoplefund.org/carl/
Empire State Certified Development Corporation NY
Colorado Lending Source, Ltd. CO
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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
WBEA 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
Check your local EDC
Texas Restaurant Brazos Valley
Visit with your The LiftFund (ex.- Galveston EDP
Association Grant Community Relief
existing bank Program Short-term Loan
Program Grant
Program)
Harris County Small U.S. Chamber of Non-Profit
Allied Arts Grant Hello Alice COVID-19
Business Recovery Commerce ‘Save Organization
program for artists Grant
Fund Small Business Fund’ Assistance
Small Business
Visit your local
Houston Business Fort Bend County Development Center
Chamber of
Development, Inc. Grant Program Website under
Commerce
COVID-19 Grants
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Frequently
Asked
Questions
Frequently Asked 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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Frequently Asked 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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Frequently Asked 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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Frequently Asked 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?
Please send them to houston@sba.gov
File and source
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