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SBA’s Disaster Declaration Makes Loans Available Statewide Due to COVID-19 (SBA file date: 4-14-20)

Summary

An SBA presentation on Disaster Assistance for Small Business in Massachusetts outlines COVID-19 help after the statewide disaster declaration effective March 18 and the CARES Act of March 27. It describes the Paycheck Protection Program as a $350 billion loan program for employers with 500 employees or fewer, self-employed and gig workers and certain nonprofits, with loans equal to 250% of average 12-month payroll up to $10 million, available through June 30, 2020. Economic Injury Disaster Loans carry 3.75% interest for small businesses and 2.75% for nonprofits, terms up to 30 years, and a forgivable grant of up to $10K at $1K per employee. Under Small Business Debt Relief, SBA will cover payments on 7(a), 504 and microloans for six months. The deck lists SCORE, MSBDC and Center for Women & Enterprise counseling and the SBA Massachusetts District Office.

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D i s a s t e r As s i s t a n c e F o r S m a l l B u s i n e s s
                                SBA’s Disaster Declaration
                                Makes Loans Available
                                Statewide Due to COVID-19
                                effective March 18th

                                President Trump
                                Signed CARES Act
                                effective March 27th


Administrator Jovita Carranza
                     SBA’s Assistance for Small Business




Counseling Business               Access to Capital                      Government Contracting         Disaster Assistance
Training & Education                                                      8(a) Business Development     Economic Injury Loans
                                   Microloans/Community Advantage
 SCORE                            7(a)/Express, 504 Loan Programs                                      Physical Damage
                                                                          HUBZone Certification
                                   Surety Bond Guaranty Program                                         Home-Owners & Renters
 Massachusetts Small Business
                                                                          Woman Owned Small Business
  Development Centers              Small Business Innovation Research
                                   Small Business Investment Company     Service-Disabled Veteran
 Center for Women & Enterprise
           SBA’s Disaster Assistance for Small Business




Paycheck Protection Program   Economic Injury Disaster Loans & Grants   Small Business Debt Relief
Paycheck Protection Program
The Paycheck Protection Program is a $350 billion loan program that applies to:
 Small employers with 500 employees or fewer, as well as those that meet the current Small
  Business Administration (SBA) size standards
 Self-employed individuals and “gig economy” individuals; and
 Certain nonprofits, including 501(c)(3) organizations and 501(c)(19) veteran organizations, and
  tribal business concerns with under 500 employees.


Loan amount:
 The size of the loans equal 250% of an employer’s average 12-month payroll, up to a maximum
  loan amount of $10 million.


Use of funds:
 Covered payroll costs include salary, wages, and payment of cash tips (up to an annual rate of
  pay of $100,000); employee group health care benefits, including insurance premiums;
  retirement contributions; and covered leave.
 Loans can also be used to pay interest payments on mortgage obligations, rent, utilities, and
  interest on other debt obligations previously incurred.
Paycheck Protection Program

Availability:
Loans are to be made available through more than existing SBA-certified lenders, including banks,
credit unions, and other financial institutions such as PayPal, Kabbage, Divvy, Fundera, and more.



How to Apply:
You apply through any existing SBA 7(a) lender or through any federally insured depository
institution, federally insured credit union, and Farm Credit System institution that is participating.
Other regulated lenders will be available to make these loans once they are approved and
enrolled in the program. Consult with the SBA resource partner network, your accountant, adviser
or banker to prepare your application. The Paycheck Protection Program will be available through
June 30, 2020.
Economic Injury Disaster
Loans and Grants
On March 6, President Trump signed the Coronavirus Preparedness and Response
Supplemental Appropriations Act, an $8.3 billion emergency spending bill that, among
many other things, gave the Small Business Administration the ability to issue an
economic injury disaster loan declaration pertaining to coronavirus.



On March 18, Massachusetts was approved for a statewide disaster declaration,
allowing all counties to be eligible for the EIDL program.


On March 27, Congress passed the CARES Act, waiving or relaxing several loan
eligibility requirements.
Economic Injury Disaster
Loans and Grants
How much can I get?
Terms of the loans are decided on a case-by-case basis
and can have a maximum length of 30 years.
•   UP TO $10K Forgivable Grant
•   $1K per employee

The interest rates for this disaster are:
 3.75% for small businesses
 2.75% for nonprofit organizations
How to Apply for EIDL
 Applicants visit SBA’s secure website at www.sba.gov/disaster


 Completed paper applications should be mailed to:
               U.S. Small Business Administration
               Processing and Disbursement Center
               14925 Kingsport Road
               Fort Worth, TX 76155


 Disaster loan information and application forms may also be obtained by calling the SBA’s
  Customer Service Center at 800-659-2955 (800-877-8339 for the deaf and hard-of-hearing) or
  by sending an email to disastercustomerservice@sba.gov.
Small Business Debt Relief

This program will provide immediate relief to small businesses with non-disaster

SBA loans, 7(a), 504, and microloans.


SBA will cover all loan payments on these
SBA loans, including principal, interest, and
fees, for six months.

This relief will also be available to new borrowers who take out loans within six
months of the President signing the bill into law.
Assistance From SBA
Partners
 Free One-on-one business consulting, via Zoom, Skype, Phone, Email
 Assistance with applying for a Disaster Loan
 Each application and every business is different
 Assistance in preparing financial statements
 Updating your Business Plan
 Get a checkup for your business




For the nearest office, visit: www.sba.gov/local-assistance
SBA’s Resource Partners:                                     Experienced Volunteers
SCORE                                                        Offering:
Contact Chapters Statewide:                                   Free and Confidential


                                                              Marketing advice
Boston                  Northeastern, MA
www.boston.score.org    www.scorenemass.org
                                                              Business plan preparation


                                                              Loan application assistance
Cape Cod                Western,MA
www.capecod.score.org   www.westernmassachusetts.score.org
                                                              Online or in person counseling



Southeastern, MA        Worcester, MA
www.sema.score.org      www.worcester.score.org
SBA’s Resource Partners:                          About
MSBDC                                             MSBDC:
                                                   Free and Confidential
Statewide Regional Offices:
                                                   Business plan and loan application assistance

Pittsfield, MA                                     Combines resources of SBA, local government, private sector and academia
                        SCHEDULE A REQUEST
                          FOR COUNSELING           Export and government contracting assistance.
Worcester, MA
                          VIRTUAL SESSION:         Typically located at colleges and universities: U-Mass Amherst and Boston,
                       Go to: www.msbdc.org/rfc     Salem State and Clark University

Salem, MA



Fall River, MA



Springfield, MA
SBA’s Resource Partners:                                 Centers in Boston and
Center for Women & Enterprise                            Westborough provide:
  www.cweonline.org                                       Classes on how to write a business plan
                           Locations:
                                                          Support in launching your business
                      CWE Eastern MA - Boston, MA
SCHEDULE A REQUEST    Info.EasternMA@CWEonline.org
  FOR COUNSELING                                          Networking with other business owners

  VIRTUAL SESSION:    CWE Central MA - Westborough, MA
                                                          2-hour topic-specific workshops
                      Info.CentralMA@CWEonline.org

 Veterans Business                                        One-on-one legal and business consulting

 Outreach Center
                      info.vboc@cweonline.org
 (VBOC)
   SUBSCRIBE
    www.sba.gov/updates



  Contact Information:
Massachusetts District Office
 10 Causeway Street, RM265
     Boston, MA 02222
       (617) 565-5590
 MassachusettsDO@sba.gov
T h a n k You !

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