Microsoft PowerPoint - COVID 19 webinar March 16 2020 v2
Summary
Slides from a U.S. Small Business Administration COVID 19 webinar of March 16 2020. The agenda covers disaster loan assistance from the SBA to small businesses and non-profits and non-financial assistance from the SBA and its partners. The slides explain how a disaster is declared, from local emergency management documentation to the governor's declaration and SBA's Office of Disaster Assistance, and state that only then can EIDL applications be received. They describe Economic Injury Disaster Loans of up to $2 million for small businesses and private non-profits, usable for fixed debts, payroll, accounts payable and other bills.
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U.S. Small Business
Administration
Agenda
Disaster Loan Assistance
from the U.S. SBA
to Small Businesses and Non-Profits
Non-Financial Assistance
from the U.S. SBA and our Partners
How a Disaster is Declared
Local Emergency Documentation goes Governor can then Governor sends If SBA Administrator
Management to local government declare a state of declaration and agrees the SBA
documents the and eventually the emergency for Texas documentation to Office of Disaster
disaster using SBA Governor’s office SBA Assistance (ODA)
criteria creates a formal
disaster declaration
Only at this point is a
federal disaster
officially ‘declared’
Only at this point
can EIDL
applications be
received
3
Economic Injury Disaster Loans (EIDL)
Loans up to $2 million
Small businesses and private non-profits are eligible
May be used for fixed debts, payroll, accounts payable and other bills affected by the disaster
3.75% interest rate for small businesses without credit available elsewhere; businesses with credit
available elsewhere are not eligible
2.75% for private non-profits
Long-term repayments, on a case by case basis, up to a maximum of 30 years
4
How to Apply for EIDL
Typically, for a physical disaster (such as Hurricane Harvey) local
Disaster Recovery Centers are used
• For the COVID-19 disaster it will be virtual / online
• The website for applying for EIDL is www.sba.gov/disaster
• You may also contact the SBA disaster customer service center:
• 1-800-659-2955
• e-mail disastercustomerservice@sba.gov
• TTY: 1-800-877-8339
5
What You Need to Apply
• In addition to the loan application:
• Completed IRS Form 4506-Ts:
• for owner
• each principal that owns 20% or more
• each general partner or managing member
• each owner who owns more than 50% of an affiliate business
• At least two (2) years complete business tax returns with all schedules
• Personal Financial Statement for each applicant
• Schedule of Liabilities for all fixed debts
• Optional:
• Items above plus 2 years complete financial statements
• P&L, Balance Sheet, Cash Flow
• Monthly revenue records for at least 2 years
6
The Three Step Disaster Loan Process
Apply online per previous slide
Loan Processing Decision
• Information is verified and credit checked
• Forecasts are completed to determine the EIDL amount
• A loan officer contacts you to make recommendation and discuss next steps
• Decision normally takes up to 4 weeks
Loan Closes and Funds Disbursed
• Sign and Submit Loan Documents
• Initial disbursement of $25K within 5 days
• A Case Manager is assigned that will help you with the rest
7
Disaster Bridge Loans
Can be useful while you are waiting on EIDL disbursement
• The application itself
• The financial projections
• The disbursement
Your existing bank may offer SBA Express Disaster Bridge Loans
• Up to $25K
• Can usually be done quickly
• Will be repaid in full or in part by proceeds from the EIDL loan
8
What If You Don’t Need EIDL
or Don’t Qualify?
• Many businesses may not need EIDL.
• If your business is in good financial shape, traditional bank
financing may be available from your existing banker / lender
• Local entities unaffiliated with the U.S. SBA may also offer help
9
Important Non-Monetary Assistance from SBA
SBA has three local Resource Partners
• Texas Gulf Coast Small Business Development Centers (SBDC)
• SCORE Mentors (virtual only)
• The 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
10
Forbearance of Your Existing SBA Loan
(Non-Disaster)
7(a) Loans and Micro Loans 504 Loans
• Lenders may help with temporary cash • CDCs may help with temporary cash
flow issues by deferring payments flow issues by deferring payments
• For 7(a) loans, up to six (6) consecutive • Up to six (6) consecutive months or 20%
months of the original loan amount, whichever
• Unless guarantee has been sold, in is less
which case 90 days
• For micro loans, up to six (6) consecutive
months
• Deferment may not cause the loan to
extend beyond the maximum six (6) year
maturity
11
Contact Information
Small Business Development Center Houston SCORE
713 752 8444 713 487 6565
Sbdc.uh.edu Houston.score.org
Women’s Business Center US Small Business Administration
713 681 9232 713 773 6500
www.wbea-texas.org/womens- Www.sba.gov/tx/houston
business-center
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- Original
- www.sba.gov