There are a lot of questions floating around about the new financial relief programs for small business. While some of those questions don’t have answers yet (for either business owners or the banks working on the loans), Shawn Daugherty of Good Times Event Services and RunSignup’s CFO & COO Kevin Harris led a discussion today to review the current status of the programs and the experience of applying.
This webinar is more audio (think: podcast!) than visual, so you don’t need to be glued to your screen to follow along.
We know we can’t answer every question on this topic – we’ve been learning along with you. We recommend reviewing the resources below to try to find more clarification on each of the programs. Additionally, reach out to your bank for specific guidance on your situation. As more guidance is published, we will send it out, post it here on our blog, and add it to our Business Resources on our Coronavirus Site.
Basic definitions of PPP and EIDL programs (from the SBA website):
Paycheck Protection Program (PPP): An SBA loan that helps businesses keep their workforce employed during the Coronavirus crisis. SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
You can 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. You should consult with your local lender as to whether it is participating in the program.
The following entities affected by Coronavirus may be eligible to apply:
- Any small business concern that meets SBA’s size standards (either the industry based sized standard or the alternative size standard)
- Any business, 501(c)(3) non-profit organization, 501(c)(19) veterans organization, or Tribal business concern (sec. 31(b)(2)(C) of the Small Business Act) with the greater of: 500 employees, or, that meets the SBA industry size standard if more than 500
- Any business with a NAICS Code that begins with 72 (Accommodations and Food Services) that has more than one physical location and employs less than 500 per location
- Sole proprietors, independent contractors, and self-employed persons
Economic Injury Disaster Loan Emergency Advance (EIDL):In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available following a successful application. This loan advance will not have to be repaid.
This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by COVID-19. Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries.
Links to More Detailed Information: