PAYCHECK PROTECTION PROGRAM (PPP) Loan
Borrowers:
The Paycheck Protection Program (“PPP”) authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis. All loan terms will be the same for everyone.
The loan amounts will be forgiven as long as:
· The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and
· Employee and compensation levels are maintained.
Payroll costs are capped at $100,000 on an annualized basis for each employee. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
Loan payments will be deferred for 6 months.
When can I apply?
· Starting April 3, 2020, small businesses and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.
· Starting April 10, 2020, independent contractors and self-employed individuals can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.
· Other regulated lenders will be available to make these loans as soon as they are approved and enrolled in the program.
Where can I apply? You can apply through any existing SBA 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. You should consult with your local lender as to whether it is participating. Visit www.sba.gov for a list of SBA lenders.
Who can apply? All businesses – including nonprofits, veterans organizations, Tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors – with 500 or fewer employees can apply. Businesses in certain industries can have more than 500 employees if they meet applicable SBA employee-based size standards for those industries. (click HERE for additional detail).
For this program, the SBA’s affiliation standards are waived for small businesses (1) in the hotel and food services industries (click HERE for NAICS code 72 to confirm); or (2) that are franchises in the SBA’s Franchise Directory (click HERE to check); or (3) that receive financial assistance from small business investment companies licensed by the SBA. Additional guidance may be released as appropriate.
Business must have employees which is paid salaries and payroll taxes or paid independent contractors as reported on Form 1099
What do I need to apply? You will need to complete the Paycheck Protection Program loan application and submit the application with the required documentation to an approved lender that is available to process your application by June 30, 2020. Click HERE for the application.
What other documents will I need to include in my application? You will need to provide your lender with payroll documentation.
Do I need to first look for other funds before applying to this program? No. We are waiving the usual SBA requirement that you try to obtain some or all of the loan funds from other sources (i.e., we are waiving the Credit Elsewhere requirement).
How long will this program last? Although the program is open until June 30, 2020, we encourage you to apply as quickly as you can because there is a funding cap and lenders need time to process your loan.
How many loans can I take out under this program? Only one.
What can I use these loans for? You should use the proceeds from these loans on your:
· Payroll costs, including benefits;
· Interest on mortgage obligations, incurred before February 15, 2020;
· Rent, under lease agreements in force before February 15, 2020; and
· Utilities, for which service began before February 15, 2020.
What counts as payroll costs? Payroll costs include:
· Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee);
· Employee benefits including costs for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit;
· State and local taxes assessed on compensation; and
· For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee.
How large can my loan be? Loans can be for up to two months of your average monthly payroll costs from the last year plus an additional 25% of that amount. That amount is subject to a $10 million cap. If you are a seasonal or new business, you will use different applicable time periods for your calculation. Payroll costs will be capped at $100,000 annualized for each employee.
How much of my loan will be forgiven? You will owe money when your loan is due if you use the loan amount for anything other than payroll costs, mortgage interest, rent, and utilities payments over the 8 weeks after getting the loan. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
You will also owe money if you do not maintain your staff and payroll.
· Number of Staff: Your loan forgiveness will be reduced if you decrease your full-time employee headcount.
· Level of Payroll: Your loan forgiveness will also be reduced if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019.
· Re-Hiring: You have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020.
How can I request loan forgiveness? You can submit a request to the lender that is servicing the loan. The request will include documents that verify the number of full-time equivalent employees and pay rates, as well as the payments on eligible mortgage, lease, and utility obligations. You must certify that the documents are true and that you used the forgiveness amount to keep employees and make eligible mortgage interest, rent, and utility payments. The lender must make a decision on the forgiveness within 60 days.
What is my interest rate? 0.50% fixed rate.
When do I need to start paying interest on my loan? All payments are deferred for 6 months; however, interest will continue to accrue over this period.
When is my loan due? In 2 years.
Can I pay my loan earlier than 2 years? Yes. There are no prepayment penalties or fees.
Do I need to pledge any collateral for these loans? No. No collateral is required.
Do I need to personally guarantee this loan? No. There is no personal guarantee requirement. ***However, if the proceeds are used for fraudulent purposes, the U.S. government will pursue criminal charges against you.***
What do I need to certify? As part of your application, you need to certify in good faith that:
· Current economic uncertainty makes the loan necessary to support your ongoing operations.
· The funds will be used to retain workers and maintain payroll or to make mortgage, lease, and utility payments.
· You have not and will not receive another loan under this program.
· You will provide to the lender documentation that verifies the number of full-time equivalent employees on payroll and the dollar amounts of payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities for the eight weeks after getting this loan.
· Loan forgiveness will be provided for the sum of documented payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
· All the information you provided in your application and in all supporting documents and forms is true and accurate. Knowingly making a false statement to get a loan under this program is punishable by law.
· You acknowledge that the lender will calculate the eligible loan amount using the tax documents you submitted. You affirm that the tax documents are identical to those you submitted to the IRS. And you also understand, acknowledge, and agree that the lender can share the tax information with the SBA’s authorized representatives.
State and Local Resources and Relief Options
Alabama
ALtogether is a one-stop-shop where Alabamians can ask for help or lend a hand during the COVID-19 crisis. This response effort is designed to connect businesses, nonprofits and people that need help with the right program partners–and to connect program partners with people and resources to help those most in need.
Alaska
Alaska Small Business Development Center COVID-19 Resource Center: The impact of Coronavirus disease (COVID-19) on Alaskan communities and businesses is changing daily. The Alaska SBDC is here to support and prepare small businesses in the days, weeks, and months to come. Here you will find guidance, updates, and resources to help adapt in an unpredictable situation.
Arizona
Arizona Together can connect those affected by COVID-19 to a wide array of resources, from financial assistance and medical assistance, to meals for low-income pupils missing school. The initiative also aims to raise money for struggling community organizations and recruit volunteers statewide.
Arkansas
This article covers the Quick Action Closing Fund, Community Development Block Grants, SBA disaster relief loans and Arkansas’s Unemployment Insurance System.
The Arkansas Small Business and Technology Development Center is working remotely and is available to you by phone, email and videoconferencing for one-on-one confidential consulting. Check their contact page for ways to reach them or call 1-800-862-2040, leave a message and one of their representatives will get in touch with you. ASBTDC also continues to schedule webinars on relevant topics to help small businesses during this crisis. Access their event page here to register for a webinar.
Arkansas Quick Action Loan Program: The Arkansas Department of Commerce announced they will begin receiving applications for the Quick Action Loan Guaranty Program to address the immediate needs of businesses affected by the COVID-19 outbreak. The program will be administered by the Arkansas Economic Development Commission (AEDC) in partnership with the Arkansas banks.
Funds for the program are provided through an allocation of $4,000,000 from the Governor’s Quick Action Closing Fund, and an additional $3,000,000 from Attorney General Leslie Rutledge’s Consumer Education and Enforcement Fund. A portion of the funding will go towards the guaranty loan program while other funding will be focused on direct loans through AEDC.
California
San Francisco COVID-19 Small Business Resiliency Fund
Businesses with between one and five employees can apply for up to $10,000 in emergency funding to help cover rent and employee salaries. You must show that you have lost 25% or more of your revenue, have less than $2.5 million in gross receipts and prove that you’re properly licensed to operate in San Francisco.
San Francisco Office of Economic and Workforce Development Resource Guide
The city’s Office of Economic and Workforce Development has a comprehensive list of resources and updated information for business owners in the bay area. San Francisco is rapidly instituting programs to help business owners. Follow @sfoewd on Twitter to keep up to date with the latest information.
Sacramento The city created the small business emergency economic relief loan programs to give up to $25,000 loans at 0% interest.
City of Los Angeles Small Business Emergency Microloan Program
Businesses and micro enterprises in Los Angeles that are responsible for providing low-income jobs can get an emergency microloan of $5,000 to $20,000. Loans with repayment terms of six months to one year carry an interest rate of 0% and five-year loans have interest rates of 3% to 5%.
Colorado
Denver Small Business Emergency Relief
This program offers cash grants of up to $7,500 to businesses in industries particularly hard-hit by COVID-19. This includes all small businesses that have lost the ability to operate, including restaurants, retail shops, barbershops and nail salons. Grants will be distributed monthly and the first applications will be due March 31.
You can also visit Colorado’s Office of Economic Development for updates.
Connecticut
DECD’s COVID-19 Business Emergency Response Unit
The Connecticut Department of Economic and Community Development (DECD) has created a COVID-19 Business Emergency Response Unit dedicated to assisting businesses in navigating resources and developing new resources. A dedicated phone line is available at 860-500-2333 to provide assistance to Connecticut’s small businesses for this purpose.
Connecticut Recovery Bridge Loan Program
To provide emergency cash flow relief to small businesses and nonprofits in Connecticut that have been negatively impacted by COVID-19, Governor Lamont created the Connecticut Recovery Bridge Loan Program. Administered by DECD, the program is for businesses and nonprofits with fewer than 100 employees. Qualifying organizations can apply for zero-interest loans of up to $75,000 or three months of operating expenses (whichever is lesser). This $25 million short-term emergency loan program will be allocated on a first-come, first-served basis and is now accepting applications.
Delaware
Delaware.gov: America’s banks are taking steps to respond to the needs of individuals and small business owners directly affected. This support will vary by institution and the customer’s specific circumstances, but could include, for example, fee waivers; deferred payments for credit cards, auto loans and mortgages; loan modifications; low-rate and zero-rate loans, and other accommodations.
Hospitality Emergency Loan Program (HELP): HELP will provide financial relief for restaurants, bars and other hospitality industry businesses that employ thousands of Delawareans.
Florida
Florida Small Business Emergency Bridge Loan Program In special cases, loans from $50,000-$100,000 are available to small businesses affected by COVID-19. The loans are meant to serve as short-term funding that can be repaid once businesses can access alternative funding. Loans are interest-free for one year, After that, the interest rate rises to 12%.
Georgia
Business Continuity Loan Fund (BCLF) To ensure the viability of city businesses and to help sustain employment, Invest Atlanta has established a Business Continuity Loan Fund (BCLF) with $1.5 million of funding from the City of Atlanta. This fund will offer small businesses zero-interest loans to address a lack of working capital and cash flows as a result of reduced consumer demand, the ability to fulfill product or service orders and other economic conditions.
Hawaii
The U.S. Small Business Administration is offering small businesses in designated states and territories low-interest federal disaster loans for working capital, this is only available to those suffering substantial economic injury as a result of COVID-19.
Idaho
The U.S. Small Business Administration is offering small businesses in designated states and territories low-interest federal disaster loans for working capital, this is only available to those suffering substantial economic injury as a result of COVID-19.
Illinois
Chicago Small Business Resiliency Fund: Starting March 31, small businesses in Chicago can apply for low-interest loans of up to $50,000 with repayment terms of up to five years. The amount of the loan you’ll qualify for depends on your revenue before your business was affected by COVID-19. To qualify, you must demonstrate a 25% drop in revenue, have less than $3 million in revenue, employ less than 50 workers and have no current tax liens or legal judgments.
Indiana
Indiana Small Business Development Center: COVID-19 Resource Page provides guidance on funding, counseling and advising, training and more.
Iowa
Iowa Small Business Development Center: COVID-19 Resources page provides resources for business preparedness, loans, economic development, and more.
Kansas
GO Topeka announced the creation of the “HOST Relief Program” to provide up to $2 million in economic stimulus for businesses and workers affected by COVID-19. HOST, which stands for Helping Others Support Topeka, is a small business emergency resource fund developed by private sector leaders designed to provide immediate aid.
Kentucky
Kentucky Small Business Development Center: Providing resources for business preparedness, loans, economic development and more.
Louisiana
Louisiana Economic Development: LED is working with all levels of government to safeguard Louisiana businesses in terms of economic and physical safety issues related to COVID-19.
Maine
Department of Economic and Community Development: Resources available for Maine businesses impacted by the COVID-19 pandemic.
Maryland
Maryland Small Business COVID-19 Emergency Relief Grant Fund This COVID-19 Emergency Relief $50M Grant Fund offers working capital to assist Maryland’s small businesses and nonprofits with disrupted operations due to COVID-19.
Massachusetts
MGCC Small Business Recovery Loan Fund
The $10 million Small Business Recovery Loan Fund will provide emergency capital up to $75,000 for companies with under 50 full-time and part-time employees, including nonprofits with no payments due for 6 months.
Michigan
Michigan Small Business Relief Fund
The State of Michigan will provide both grants and loans to small businesses affected by COVID-19 starting on or around April 1. Grants will be available in amounts of up to $10,000 to help cover working capital. Loans will be available in amounts from $50,000 to $200,000 at interest rates of 0.25%. Companies with 50 employees or fewer can qualify for grants, while loans are targeted at companies with 100 employees or fewer that can’t get credit elsewhere. In both cases, businesses must show income loss.
Minnesota
Minnesota Chamber of Commerce COVID-19 Business Toolkit: This toolkit will continue to be updated daily as new information becomes available.
Mississippi
The U.S. Small Business Administration is offering small businesses in designated states and territories low-interest federal disaster loans for working capital, this is only available to those suffering substantial economic injury as a result of COVID-19.
Missouri
The U.S. Small Business Administration is offering small businesses in designated states and territories low-interest federal disaster loans for working capital, this is only available to those suffering substantial economic injury as a result of COVID-19.
Montana
Montana Department of Labor and Industry: Resources available for Montana businesses impacted by the COVID-19 pandemic.
Nebraska
Nebraska Chamber of Commerce and Industry Coronavirus Toolkit for Businesses & Industry: The information outlined will help business owners stay prepared and resilient through the coronavirus pandemic.
Nevada
The U.S. Small Business Administration is offering small businesses in designated states and territories low-interest federal disaster loans for working capital, this is only available to those suffering substantial economic injury as a result of COVID-19.N
New Hampshire
NH Department of Business and Economic Affairs: BEA stands ready to provide assistance to businesses affected by COVID-19 through custom and personal input from Business Retention specialists.
The Small Business Development Center (SBDC): Provides highly individualized, advising and education to NH businesses at no cost. SBDC’s team of advisors can help businesses apply for SBA Economic Injury Disaster Loans, prepare for relief measures as they are introduced, and discuss concerns related to cash flow, staffing, marketing, accounting, and supply chain interruptions.
New Jersey
Waiver to Stay Openh
If you believe your retail business is unique and should be considered an “essential business,” you can reach out to the Business.NJ.gov team and submit your business to the State Director of Emergency Management. The Director has the discretion to make additions, amendments, clarifications, exceptions and exclusions to these lists. If your business falls into a category already exempted, or you are not a retail business, you do not need an exemption and should not pursue this option.
New Mexico
The U.S. Small Business Administration is offering small businesses in designated states and territories low-interest federal disaster loans for working capital, this is only available to those suffering substantial economic injury as a result of COVID-19.
New York
New York City Employee Retention Grant Program Small businesses with one to four employees can apply for a grant of up to $27,000 that covers 40% of payroll costs over the course of two months. To do so, you must show that you’ve lost 25% of your revenue due to COVID-19. For more information, refer to New York City’s Coronavirus resource page for small businesses. Please note that businesses must be located in one of New York City’s five boroughs, been in operation for at least six months and have no current tax liens or legal judgments.
New York City Small Business Continuity Fund If your business has fewer than 100 employees, you can get up to $75,000 in interest-free loans from the city to cover revenue losses. Businesses within the five boroughs that have experienced at least a 25% reduction in revenue can qualify. You must have no tax liens or legal judgments against you, be able to show a loss in revenue and have proof that you are able to repay the loan.
NY Small Business Development Centers (SBDC): Provides small business owners and entrepreneurs in New York with the highest quality, confidential business counseling, training, and business research at no cost.
Community Development Financial Institution (CDFI) Contact List: CDFIs are local financial service providers with locations throughout New York State, and often are the sole provider of banking and other financial services in communities that are not served by traditional banks and financial institutions.
Entrepreneurship Assistance Centers (EAC): provides instruction, training, technical assistance and support services to new and aspiring entrepreneurs in local communities statewide.
North Carolina
North Carolina Business Relief Resource Guide: A guide with contact information for financial support for businesses.
North Dakota
Loans and equity investments are available to companies certified as primary sector under the North Dakota Development Fund, Revolving Rural Loan Fund and the Venture Capital Program.
COVID19- Resources and Updates: In an attempt to drive data-based decisions versus further actions of fear or panic, GNDC has created this response page. Serving as a hub to update North Dakota business, industry and individuals on ongoing impacts at the local level and beyond to the world market.
Ohio
The U.S. Small Business Administration is offering small businesses in designated states and territories low-interest federal disaster loans for working capital, this is only available to those suffering substantial economic injury as a result of COVID-19.
Oklahoma
Oklahoma Commerce: The Oklahoma Department of Commerce is closely monitoring updates and guidance from our federal and state partners.
Oregon
The Beaverton Emergency Business Assistance Program was made to help businesses in Beaverton with 50 or less employees that were ordered to close as a result of government coronavirus. Guidelines state these businesses can apply for $2,500 per month in rent or mortgage reimbursement while the city is in a declared state of emergency. To recieve this, they must have a commercial storefront in Beaverton and a rental lease or mortgage on the property.
Hillsboro Small Business Emergency Relief Program From March 23 to April 20, businesses in Hillsboro can apply to receive a $5,000 grant to offset losses associated with COVID-19. Priority will be given to restaurants, bars, education facilities and businesses that serve large groups of people. Businesses with 10 or fewer employees will be prioritized.
Jade District-Old Town COVID-19 Small Business Response Fund In Portland, small businesses in the Jade District and Old Town Chinatown neighborhoods can apply for emergency funding to support their businesses by March 23. Up to $190,000 total is available from local government sources. Priority will be given to Asian- and Pacific Islander-owned businesses
Pennsylvania Comcast is taking steps to implement new policies for the next 60 days. These steps will help make Xfinity WiFi Free For Everyone and Xfinity WiFi hotspots located in businesses and outdoor locations across the country available to anyone who needs them for free – including non-Xfinity Internet subscribers. Comcast will also be waiving late fees and offering internet essentials free to new customers.
COVID-19 Working Capital Access Program (CWCA) The Commonwealth Financing Authority (CFA) recently authorized the transfer of $40 million to the Small Business First Fund for CWCA. PIDA authorized making $60 million available to provide loans of $100,000 or less to for-profit businesses with 100 or fewer full-time employees.
PECO With customers potentially impacted by the COVID-19 pandemic, PECO understands and is taking steps to help. Effective March 13, 2020, PECO suspended service disconnections and started waiving new late payment charges. This will continue through at least May 1, 2020. In addition, PECO will continue to remind customers of existing bill assistance resources and energy assistance programs to support them through temporary or extended financial hardship
Pennsylvania Department of Community and Economic Development COVID-19 Business Resource Guide The Pennsylvania Department of Community and Economic Development has put together a COVID-19 Business Resource guide that is updated frequently. There’s a list of contacts and resources that are available to assist affected businesses.
Request for Waiver/Exemption to Business Closure Businesses can request a waiver to keep their location open, even if they are not considered life sustaining. Owners can submit the form on the website. All decisions will be communicated by email and will balance public health, safety and the security of Pennsylvania’s industry supply chains supporting life sustaining businesses.
Philadelphia City officials announced new restrictions on commercial activity and a halt to all non-essential city government operations to reduce the spread of COVID-19. Only essential commercial establishments should remain open. Details can be found in the link above.
Philadelphia COVID-19 Small Business Relief Fund The COVID-19 Small Business Relief Fund offers grants or zero-interest loans to the city’s businesses impacted by the virus. Microenterprise grants of $5,000, small business grants of up to $25,000 and small business loans with 0% interest of up to $100,000 are available.
Rhode Island
The U.S. Small Business Administration is offering small businesses in designated states and territories low-interest federal disaster loans for working capital, this is only available to those suffering substantial economic injury as a result of COVID-19.
South Carolina
South Carolina Department of Commerce: Provides information on SBA Assistance for SC during COVID-19.
South Dakota
South Dakota Department of Labor and Regulation: Provides resources on in-state assistance and national assistance for small business and employees.
Tennessee
Department of Economic and Community Development: Small business is the backbone of Tennessee’s economy, and as a state, they will continue to focus on targeted relief for these businesses.
Texas
Texas Economic Development Coronavirus: Provides information for small business relief and support in the state of Texas.
Utah
Salt Lake City Emergency Loan Program The city’s Emergency Loan Program is offering up to $20,000 on 0% interest loans for a five year payback term. These loans can only be used for working capital, marketing and inventory.
Vermont
Agency of Commerce and Community Development COVID-19 Resource Center: Provides information on financial assistance, sector guidance, and unemployment for businesses and employees.
Virginia
Virginia Chamber COVID-19 Resource Center: Provides information for resources developed for small businesses, including webinars on various topics for business owners.
Washington
Business Relief During COVID Pandemic Revenue is helping provide relief to impacted businesses from COVID-19 during the state of emergency (February 29, 2020 through the end of the state of emergency, yet to be determined). These actions address a broad range of taxes and programs: business and occupation tax, real estate excise tax assessments, leasehold excise tax, forest tax and tax deferrals for biotechnology and medical device manufacturing.
Seattle Office of Economic Development Grants Drawing from a $1.5 million addition to the city’s Small Business Stabilization Fund, these grants are available to small business owners who make 80 percent or less of the area’s median income, have a physical location, five or fewer employees and have experienced a loss of income due to COVID-19. Financials must be shared as part of the process and applications are being reviewed on a rolling basis.
Deferred Payment Plans with Seattle Public Utilities (SPU), Seattle City Light (SCL) and Puget Sound Energy Utilities will be kept on in Seattle throughout the COVID-19 crisis. Commercial customers can set up deferred payment plans with SCL or SPU by calling 206-684-300. Also, gas provider Puget Sound Energy will not be disconnecting customers, instead waiving late fees and offering payment plans.
Amazon’s Neighborhood Small Business Relief Fund Cash Grants for South Lake Union and Regrade Small Businesses The e-commerce giant will draw from a $5 million fund to support businesses with less than $7 million in annual revenue or fewer than 50 employees with a few blocks of its Seattle headquarters.
Washington Small Business Development Center’s Business Resiliency Guide The center will also hold webinars March 16-20.
Washington D.C.
Greater Washington Community Foundation COVID-19 Emergency Response Fund: The Community Foundation established the COVID-19 Emergency Response Fund to support local nonprofits leading emergency preparedness and response efforts to help mitigate the impact on disproportionately affected communities in this region.
COVID-19: Business Guidance and Resources: This page is continually monitoring the outbreak and its effect on Washington, DC.
West Virginia
Resources for WV Small Businesses: Provides information for small businesses in WV.
Wisconsin
COVID-19 Business Resources: This page is designed to provide the latest information on resources aimed at maintaining the vitality of small businesses.
Wyoming
Wyoming SBDC Resources for Small Business: The Wyoming SBDC Network, as part of our emergency preparedness strategies for businesses, is ready to strategize with entrepreneurs statewide to develop individualized plans to keep businesses running as smoothly as possible.