Microsoft PowerPoint - EIDL-PPP Overview Jan 29 2020
Summary
Slides from a U.S. Small Business Administration overview of EIDL loans, with an agenda covering the EIDL loan overview, resource partners, additional resources and frequently asked questions. They state that EIDL loans are available for all eligible small businesses and expire on December 31, 2020, and that applicants can request an advance of up to $10,000, a grant that will not have to be repaid but is deducted from total loan eligibility. They note that on June 15 SBA began accepting new EIDL and EIDL Advance applications from qualified small businesses and U.S. agricultural businesses.
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U.S. Small Business
Administration
Agenda
• EIDL Loan Overview
• Resource Partners
• Additional Resources
• FAQ
EIDL Loans
Economic Injury Disaster Update
• Available for all eligible small businesses
• Expires on December 31, 2020
• When applying for an EIDL loan, don’t forget to apply for the advance up to
$10,000 which is a grant, by checking the box.
• The loan advance will not have to be repaid. Recipients do not have to be
approved for a loan in order to receive the advance, but the amount of the loan
advance will be deducted from total loan eligibility.
• Applicants who have already submitted their applications will continue to be
processed on a first-come, first-served basis.
4
ELIGIBILITY
• On June 15, SBA began accepting new Economic Injury Disaster Loan (EIDL) and
EIDL Advance applications from qualified small businesses and U.S. agricultural
businesses.
• 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 are now eligible as a result of the latest round of funds
appropriated by Congress in response to the COVID-19 pandemic.
• 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 (as defined by section 18(b) of the Small Business Act (15
U.S.C. 647(b)).
• SBA is encouraging all eligible agricultural businesses with 500 or fewer employees
wishing to apply to begin preparing their business financial information needed for
their application.
5
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
6
EIDL Repayment
• No payments on EIDL loans for one year from date of note.
• Applicant will receive amortization schedule after loan is funded
from servicing department and payment stubs.
• Usually, applicant will be notified before applicant bank account on
file will be debited for payment. Applicant can also request check
payment 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 1
9
Application 2
10
Application 3
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Application 4
12
Application 5
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Application 6
14
Application 7
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PPP Loans
Payroll Protection Program (PPP)
• Was established to help small businesses pay their payroll and other
operating expenses.
• 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
https://www.sba.gov/funding-programs/loans/paycheck-protection-
program-ppp
17
Loan Details
• No collateral required
• No personal guarantees required
• No fees charged to the Borrower
• Payments are deferred
18
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
• Strategic Planning
• Risk management and Insurance counseling
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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
21
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 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
• Houston Business Development, Inc.
• Fort Bend County Grant Program
23
Frequently Asked
Questions
Questions (1/3)
• Visit www.sba.gov/tx/houston, under Coronavirus resources:
• 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)
• 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.
Questions (2/3)
• 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.
Questions 3/3
• 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.
• https://www.sba.gov/document/support--faq-regarding-participation-
faith-based-organizations-ppp-eidl
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Questions (4/3)
• 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
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
• 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
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