PPP Loan Overview, Resource Partners and EIDL Loan Overview (SBA file date: June 11)
Summary
A U.S. Small Business Administration slide presentation from the Houston District on Paycheck Protection Program and EIDL loans, local resource partners and other assistance. It summarizes the Paycheck Protection Program Flexibility Act of 2020 (HR 7010, 6/5/2020) in seven changes, including a covered period extended from eight weeks to 24 weeks, a payroll share lowered from 75 percent to 60 percent, a five-year maturity for loans approved on or after June 5, 2020, and a longer payment deferral. The EIDL slides give a 3.75% interest rate for small businesses and 2.75% for private non-profits, with repayment up to 30 years, and say EIDL is currently available for agricultural businesses only. A question section says the EIDL advance is $1,000 per employee up to a maximum of $10,000 and that both loans may be used without duplicating costs.
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
• PPP Loan Overview
• Resource Partners
• EIDL Loan Overview
• General Assistance
• Additional Resources
PPP Loans
Coronavirus Aid, Relief and Economic Security (CARES) Act
Provides Businesses TWO Loan Choices
Eligible Business
1 2
Economic Injury
Payroll Protection
Disaster Loan
Program (PPP)
(EIDL)
Contact
Contact the (SBA)
Participating
Directly
Lender
4
Payroll Protection Program (PPP)
• Was established to help small businesses pay their payroll and other
operating expenses.
• SBA will forgive 100% of the loan proceeds if used to cover (8) weeks
of eligible expenses, once the loan is disbursed: (PPP Flexibility Acct
allows for 24 weeks or Dec. 31, 2020; whichever occurs first)
• 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
5
PPP Eligibility (1 of 2)
• Small business affected by COVID-19 with less than 500 employees:
• Sole proprietorships, independent contractors and self-employed persons
• Private non-profit organizations
• 501(c)(19) veteran organizations
• Certain businesses may have more than 500 employees if they meet
SBA’s size standards for those industries
6
PPP Eligibility (2 of 2)
1. Churches and some non-profit organizations qualify for PPP and EIDL
loans
• Note that EIDL is only currently available to agricultural
businesses.
• Business must be small.
https://www.sba.gov/document/support--table-size-standards
7
How to Apply for PPP
• Apply by contacting a participating local
approved SBA lender – over 200 in the
Houston District
• Contact your current lender
• List of SBA Lenders is located at
www.sba.gov/tx/houston under “corona
virus”
8
Documents Needed - PPP
Borrowers must submit documentation:
• PPP Loan Application
• Payroll processor records
• Payroll tax filings
• If sole proprietorship or independent contractor; form 1040
• If partnership with distributions; form K-1
9
Calculating PPP Loan Amount
https://home.treasury.gov/system/files/136/How-to-Calculate-Loan-Amounts.pdf
10
Sample PPP Application (1 of 5)
11
Sample PPP Application (2 of 5)
12
Sample PPP Application (3 of 5)
13
Sample PPP Application (4 of 5)
14
Sample PPP Application (5 of 5)
15
Loan Details & Forgiveness
• Details:
• Maturity of 2 years (PPP Flexibility Act- Increases to 5 years for loans that are
approved by SBA (based on the date SBA assigns a loan number) on or after
June 5, 2020).
• Interest rate of 1%
• Payments deferred (Per PPP Flexibility Act- to be discussed slide 19)
• No collateral or personal guarantees required
• No fees charged to the small business
• Forgiveness:
• At least 75% of the loan must be used for payroll expenses *
• No more than 25% may be used for rent, utilities, and interest expenses *
**(Per PPP Flexibility Act updated to 60% and 40%, respectively).
16
HR 7010 Summary
Paycheck Protection Program Flexibility Act of 2020
(6/5/2020)
Seven Key Changes
(Changes 1-3)
1. Extends the covered period for loan forgiveness from eight 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.
Seven Key Changes
(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.
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
21
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
22
EIDL Loans
Economic Injury Disaster Update
• Currently (only) available for agricultural businesses
• Previous applicants with a 200 series application number:
• May re-apply in order to access the EIDL Advance
24
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
25
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
26
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
28
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
29
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
• What banks are offering PPP loans?
• Check www.sba.gov/tx/houston
• 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.
• 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 – it won’t affect previous application
• If application begins with 33 – watch your bank account.
Questions (3/3)
• 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
• For the PPP Loan:
• Contact your lender directly
• 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
- PPP-EIDL_Overview_June_11.pdf
- Size
- 4,086,574 bytes
- SHA-256
- 123f4a77c311957cd3fddcc605f0ece7dc18335a822b0bdfe9d12444786ec277
- Our copy
- PPP-EIDL_Overview_June_11.pdf
- Original
- www.sba.gov