Notice: Lapse in Appropriations (SBA file date: April 16 ver 2)
Summary
This U.S. Small Business Administration slide deck for the Houston District opens with a notice of a lapse in appropriations: SBA is unable to accept new applications for the COVID-19 Economic Injury Disaster Loan program, including EIDL Advances, or for the Paycheck Protection Program. It lists local resource partners and SBA debt relief, including automatic payment of current 7(a), 504 and microloan principal, interest and fees for six months. It describes EIDL loans of up to $2 million at a 3.75% interest rate for small businesses and 2.75% for private non-profits, and PPP loans with a maturity of 2 years and an interest rate of 1%, forgivable when used for payroll, mortgage interest, rent and utilities, with at least 75% for payroll. It closes with a fraud advisory telling readers that an SBA logo does not guarantee information is from the SBA.
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U.S. Small Business
Administration
Important Update
Notice: Lapse in Appropriations
SBA is unable to accept new applications at this time for the Economic Injury Disaster Loan
(EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available
appropriations funding.
Applicants who have already submitted their applications will continue to be processed on a
first-come, first-served basis.
The SBA is currently unable to accept new applications for the Paycheck Protection Program
based on available appropriations funding.
Agenda
1. Non-Monetary Assistance
from the US SBA and our Partners
2. Financial Assistance from the US SBA
for Small Businesses and Non-Profits
3. Additional Resources
These Slides are available to download at:
www.sba.gov/tx/houston
Non-Monetary 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
5
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-
SIGN-UP FOR EMAIL UPDATES:
business-center
www.sba.gov/tx/houston
FOLLOW US ON TWITTER:
@SBA_Houston
6
Financial Assistance
From the US SBA
SBA Debt Relief
7(a), 504, & Existing Disaster
Microloans Loans
• SBA will defer existing loan
• The SBA will automatically pay the payments through December 31,
principal, interest, and fees of current 7(a),
504, and microloans in regular servicing
2020 automatically.
status for a period of six months. • Borrowers of home and business
• If Lender receives a payment from a disaster loans do not have to
Borrower after March 27, 2020, they must contact SBA to request deferment.
inform Borrower it has the option of:
Lender either returning the payment or
applying the payment to further reduce
the balance.
8
EIDL Loans
Notice: Lapse in Appropriations
SBA is unable to accept new applications at this time for the Economic Injury Disaster Loan
(EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available
appropriations funding.
Applicants who have already submitted their applications will continue to be processed on a
first-come, first-served basis.
Economic Injury Disaster Loans (EIDL)
Loans up to $2 million; no payments for 12 months
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
May be approved solely on the applicant credit score.
10
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 guarantee requirements:
• None if loan is under $200,000
• If over $200,000 then guarantee from all 20% or greater owners
Collateral:
• If over $25,000 EIDLs require collateral
• SBA will not decline for lack of collateral, but requires the pledge of what is available
• Does not require primary residence in Texas
11
PPP Loans
Notice: Lapse in Appropriations
The SBA is currently unable to accept new applications for the Paycheck Protection Program
based on available appropriations funding.
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
13
PPP Eligibility
• 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
14
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 is:
• Based on employer maintaining or quickly rehiring employees and
maintaining salary levels
• Reduced if full-time headcount declines or if salaries and wages decrease
• Fully forgiven if the funds are used for payroll costs, interest on mortgages,
rent, and utilities
• At least 75% of the forgiven amount must have been used for payroll
15
How to Apply for PPP
• Apply through existing SBA 7(a) lenders –
Apx 200 in the Houston District
• Other lenders will be added as necessary
• Lenders have begun processing applications
as of April 3, 2020
• Check with your existing lender, or
• List of SBA Lenders is at
www.sba.gov/tx/houston under “corona
virus”
16
Documents Needed - PPP
Borrowers must submit documentation to establish eligibility such as:
• payroll processor records
• payroll tax filings
• If sole proprietorship, form 1099-MISC or income and expenses.
For borrowers that do not have such documentation, must provide:
• other supporting documentation
• such as bank records
• sufficient to demonstrate the qualifying payroll amount.
17
Non-SBA Additional Info
Additional Info / Resources
• See your existing bank – they may have non-SBA programs to help
• LiftFund Program
• Texas Restaurant Association Grant Program
• Galveston EDP Short-term Loan Program: https://bit.ly/2UrL001
• Harris County Small Business Loans Program
• Allied Arts Grant program for artists
• Wounded Warrior
• Non-Profit Organization Assistance
• More coming…
19
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
20
Small Business Scam & Fraud Scheme Advisory
• The presence of an SBA logo on webpage or correspondence does
not guarantee the information is from the SBA
• If someone contacts you promising to get approval of an SBA loan,
but requires any payment up front, suspect fraud
• Any email communication from SBA will end with gov
• Report any suspected fraud to OIG’s Hotline at 800-767-0385 or
online at, https://bit.ly/2UxdAhL
21
Most Common Questions
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
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