General Assistance from the US SBA and our Partners; Financial Assistance from the US SBA
Summary
A U.S. Small Business Administration slide presentation from the Houston District office on general and financial assistance under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. It names three local resource partners and says the SBA will pay principal, interest and fees of current 7(a), 504 and microloans for six months. The Paycheck Protection Program slides cover eligibility for businesses with less than 500 employees, a maturity of 2 years and an interest rate of 1%, and forgiveness requiring at least 75% of the loan to be used for payroll. The EIDL slides give a 3.75% interest rate for small businesses and 2.75% for private non-profits, say EIDL is open to agricultural businesses only, and describe an EIDL grant of $1,000 per employee up to a maximum of $10,000. A question section covers using both loans without duplicating costs and reporting suspected fraud.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Full text
U.S. Small Business
Administration
Agenda
1. General Assistance
from the US SBA and our Partners
2. Financial Assistance from the US SBA
3. Additional Resources
These Slides are available to download at:
www.sba.gov/tx/houston
General Assistance
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 / short term financial management
• Messaging / Social Media to stay engaged with customers
• Import/Export
• Supply Chain
• Strategic Planning and Financial Tune-Up; prepare to prosper after the disaster
• Planning for further disasters / Risk management / Insurance counseling
4
Contact Information
Small Business Development Center Houston SCORE
713-752-8444 713-487-6565
www.sbdc.uh.edu www.houston.score.org
Women’s Business Center U.S. Small Business Administration
713-681-9232 713-773-6500
www.wbea-texas.org/womens-
business-center SIGN-UP FOR EMAIL UPDATES:
www.sba.gov/tx/houston
FOLLOW US ON TWITTER:
@SBA_Houston
5
Financial Assistance
From the US SBA
SBA Debt Relief
7(a), 504, & Existing Disaster
Microloans Loans
• The SBA will automatically pay the • SBA will defer existing loan
principal, interest, and fees of current 7(a), payments through December 31,
504, and microloans in regular servicing
status for a period of six months. 2020 automatically.
7
Passage of the
Coronavirus Aid, Relief, and Economic Security (CARES) Act
Gives Businesses TWO Loan Choices
Affected, Eligible
Business?
1 2
Paycheck Economic Injury
Protection Disaster Loan
Program (PPP) (EIDL)
Loan is from Loan is directly
existing SBA from the federal
Lender government (SBA)
8
PPP Loans
Payroll Protection Program (PPP)
• Intended to help small businesses with payroll and other operating
expenses.
• SBA will forgive the portion of the loan proceeds used to cover:
• The first eight weeks of payroll costs
• Rent
• Utilities
• Mortgage interest
• More details here:
• https://www.sba.gov/funding-programs/loans/paycheck-protection-
program-ppp
10
PPP Eligibility (1 of 2)
• Small business affected by COVID-19 with less than 500 employees,
including
• sole proprietorships, independent contractors, self-employed persons
• private non-profit organization
• 501(c)(19) veteran organizations
• Certain businesses may have more than 500 employees if they meet
SBA’s size standards for those industries
• Hospitality and food industry businesses with more than one
location:
• could be eligible at the store and location level if store employs less than
500 workers
• This means each store location could be eligible
11
PPP Eligibility (2 of 2)
1. Churches and related institutions qualify for PPP and EIDL loans
• Note that EIDL is only currently available only to agricultural businesses.
• Must be small. If in doubt check SBA’s size standards tables
https://www.sba.gov/document/support--table-size-standards
2. Agricultural producers, farmers, and ranchers with 500 or fewer employees whose
principal place of residence is in the United States are eligible.
1. Farms are eligible if:
(i) the farm has 500 or less employees, OR
(ii) average annual receipts of $1M
Additionally, farms can qualify under SBA’s “alternative size standard:”
(1) a maximum net worth of the business not more than $15 million, AND
(2) the average net income Federal income taxes of the business for the two full
fiscal years before the date of the application be not more than $5 million.
12
Loan Details & Forgiveness
• Details:
• Maturity of 2 years; interest rate of 1%; Payments deferred for six months
• No collateral or personal guarantees required
• The Government nor lenders will charge small businesses any fees
• Forgiveness:
• At least 75% of the loan must have been used for payroll
• Based on employer maintaining or quickly rehiring employees and
maintaining salary levels
• Reduced if FTE headcount declines or if salaries and wages decrease
• No more than 25% may be used for rent, utilities, and interest on mortgage.
13
How to Apply for PPP
• Apply through existing SBA 7(a) lenders –
Apx 200 in the Houston District
• Check with your existing lender, or
• List of SBA Lenders is at
www.sba.gov/tx/houston under “corona
virus”
14
Documents Needed - PPP
Borrowers must submit documentation to establish eligibility such as:
• payroll processor records
• payroll tax filings
• If sole proprietorship or independent contractor, form 1040
• If partnership with distributions, form K-1
15
Calculating PPP Loan Amount
https://home.treasury.gov/system/files/136/How-to-Calculate-Loan-Amounts.pdf
16
Sample PPP Application (1 of 5)
17
Sample PPP Application (2 of 5)
18
Sample PPP Application (3 of 5)
19
Sample PPP Application (4 of 5)
20
Sample PPP Application (4 of 5)
21
EIDL Loans
Currently open to Agricultural Businesses only
Economic Injury Disaster Update
• Currently EIDL is only available for agricultural businesses
• OR – previous applications with a 200 series application number.
• You may re-apply in order to access the EIDL Advance
23
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
Ag-Business Only 24
Additional EIDL Details
No cost to apply; No obligation to take the loan (if offered)
Amount is determined by SBA from your information
Existing SBA Disaster or Business loans do not make you ineligible
Personal guarantees and collateral may be required
Ag-Business Only 25
CARES Act - EIDL Grant
• Until 12-31-2020 affected small businesses may request an EIDL
grant
• $1,000 per employee; maximum of $10,000
• Repayment is not required even if subsequently denied a loan
• Advance intended for:
• paid employee sick leave if unable to work due to the direct effect of the COVID–19
• payroll to retain employees
• increased costs to obtain materials unavailable due to interrupted supply chains
• rent or mortgage payments
• obligations that cannot be met due to revenue losses
Ag-Business Only 26
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
Ag-Business Only 27
Non-SBA Additional Info
Additional Info / Resources
• See your existing bank – they may have other SBA & non-SBA programs to help
• 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 Loans Program
• 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
• More coming…
29
Contact Information
Small Business Development Center Houston SCORE
713-752-8444 713-487-6565
www.sbdc.uh.edu www.houston.score.org
Women’s Business Center U.S. Small Business Administration
713-681-9232 713-773-6500
www.wbea-texas.org/womens-
business-center SIGN-UP FOR EMAIL UPDATES:
www.sba.gov/tx/houston
FOLLOW US ON TWITTER:
@SBA_Houston
30
Most Common Questions
Common Questions (1/3)
• Visit www.sba.gov/tx/houston, under Coronavirus resources:
• For a copy of this slide deck & the Houston District SBA lender list
• What banks are offering PPP loans?
• Many of the SBA lenders in Houston have already started
• Can I check status of my application?
• 1 800 659 2955 or disastercustomerservice@sba.gov
• Are EIDL loans forgiven?
• NO, but the Advance is a grant (is forgiven)
• How is the up to $10K EIDL Relief Grant calculated?
• Based on the number of pre-disaster (before January 31, 2020) employees;
$1,000 per employee up to a maximum of $10,000.
Common Questions (2/3)
• Can I apply for both EIDL and PPP?
• YES; however, you cannot duplicate costs.
• Which loan should I apply for EIDL or PPP?
• Each business is different. Our network of local, free resources can help.
• I have already submitted my EIDL application can I submit for the
PPP loan?
• YES, just don’t duplicate costs included in the EIDL.
• If payroll was on the EIDL, you must refinance the EIDL into the PPP
• I have already submitted my EIDL application but didn’t get the
Advance?
• If application number starts with 22 - submit the new application to access
advance – won’t affect previous application
• If application begins with 33 – watch your bank account.
Common Questions (3/3)
• I received an email with an SBA logo. How do I know it is real?
• If 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
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
• For the PPP Loan:
• Contact the SBA lender of your choice
• Lender list at www.sba.gov/tx/Houston under Coronavirus Resources
• One of our Resource Partners for general guidance:
• Texas Gulf Coast SBDC 713-752-8444 www.sbdc.uh.edu
• Houston SCORE 713-487-6565 www.houston.score.org
• Women’s Business Center 713-681-9232 www.wbea-texas.org/womens-business-center
File and source
- File
- COVID_19_SBA_Update_May_14_2020_v2_002.pdf
- Size
- 1,142,460 bytes
- SHA-256
- 7b547b04693ec56079d789d5770160dc684a6092a8a8050025f50be47f33d3d7
- Original
- www.sba.gov