right arrow
Make sure to check out our July Checklists for HS Juniors and HS Seniors. Consult these quick resources to get you started on the process this month.
GUEST STUDENT OF THE WEEK: ehales3 is a rising sophomore at Cornell University. As a high school student, she always thought that she wanted to study in a more urban environment, but has grown to love Ithaca and all that it offers. ASK HER ANYTHING!
As we work to adjust to the current reality, make sure to check out these dedicated COVID-19 resources: our directory of virtual campus tours, our directory of extended deadlines, as well as the list of schools going test optional this fall.

COVID19 Resources for small businesses - wading through all the info!

surfcitysurfcity 2735 replies61 threads Senior Member
edited March 30 in Parent Cafe
Is anyone else here researching and wading through all the information on resources for small businesses and nonprofits? I think I'm a pretty educated person, have worked in accounting and have actually done SBA lending (in a former life) but it is still overwhelming to figure out what aid we should apply for.

I have a small business and a nonprofit so I am getting double the emails! For now, this is what I am reading:

SBA Disaster Loans - Can apply for a $10,000 emergency advance that can be forgiven. This was a very basic and quick application form online. (I have also seen the full blown SBA Form 5 form linked several places - I believe that is for an EIDL loan)

CARES - Can apply for 2.5 x monthly payroll costs. This is also known as the Payroll Protection Program. Note, this does interact with the SBA EIDL loans (you can't "double dip" I understand this in theory but not in the details yet)

Payroll/FICA deferral - This is also part of CARES I think. We can delay submitting our employer portion of the payroll tax.

My state has also made quick loans available through county economic development agencies but that money is going quickly.

See why my head is spinning? So many places to apply to and information to package.
edited March 30
118 replies
Tagged:
· Reply · Share
«13456

Replies to: COVID19 Resources for small businesses - wading through all the info!

  • VaBluebirdVaBluebird 3522 replies247 threads Senior Member
    Best wishes for all small businesses. I hope you get every bit of help possible.
    · Reply · Share
  • MaineLonghornMaineLonghorn 41937 replies2267 threads Super Moderator
    edited March 30
    @surfcity, thanks! Can I PM you if I have questions?
    edited March 30
    · Reply · Share
  • surfcitysurfcity 2735 replies61 threads Senior Member
    @MaineLonghorn sure! I figure PMs might be really helpful as we wrestle with this
    · Reply · Share
  • MaineLonghornMaineLonghorn 41937 replies2267 threads Super Moderator
    Just applied for the SBA loan. Wow, that was easy! I will look at CARES next.
    · Reply · Share
  • MaineLonghornMaineLonghorn 41937 replies2267 threads Super Moderator
    OK, looks like the Payroll Protection Program application isn't out yet.
    · Reply · Share
  • taverngirltaverngirl 1650 replies45 threads Senior Member
    I was going to say, check your local Chamber. My firm belongs to four and they all have great information. The locals will be best since they will include state info.
    · Reply · Share
  • NhatrangNhatrang 1324 replies1 threads Senior Member
    @MaineLonghorn can you share the links for those you applied?

    Jus had a FT with my sister who has 2 optometry offices in CA. She has 8 full time staff and the rent is $30K total each month. With no patients she will lose around $50K -55K for the first month as she planned to pay her staff during the shut down. If her office doesn’t open after a month, she doesn’t think she can sustain the staff, and not sure If she can keep paying the rent. I mean she could from her life savings but to what end?

    I will ask if she knows anything about the government loans.
    · Reply · Share
  • surfcitysurfcity 2735 replies61 threads Senior Member
    @Nhatrang here is the page for SBA disaster loans: https://www.sba.gov/page/disaster-loan-applications
    · Reply · Share
  • NhatrangNhatrang 1324 replies1 threads Senior Member
  • SingswimsewSingswimsew 100 replies1 threads Junior Member
    I'm the bookkeeper at a small retail store. I spent yesterday applying for the SBA Economic Injury Disaster Loan which is in fact a $10,000 grant to small businesses and putting together our application for the PPP, or Paycheck Protection Program so we can pay our employees for two months and if we do the PPP loan becomes a grant. You can get 250% of your average monthly payroll with the PPP.
    · Reply · Share
  • MaineLonghornMaineLonghorn 41937 replies2267 threads Super Moderator
    @Singswimsew do you have a link to the PPP application? I haven't found it yet.
    · Reply · Share
  • SingswimsewSingswimsew 100 replies1 threads Junior Member
    @MaineLonghorn it goes live tomorrow (Friday.) It will be on our bank's website and we will fill it out and submit it there. I'm not sure but it may be that it can only be accessed through a bank.
    · Reply · Share
  • MaineLonghornMaineLonghorn 41937 replies2267 threads Super Moderator
    Thanks. My TD Bank Branch said they’re not doing the SBA loans. That seems odd to me.
    · Reply · Share
  • LindagafLindagaf 10764 replies586 threads Super Moderator
    SBA loans are NOT available to any small business with partial foreign ownership. So that means that my husband’s employees are screwed and so are we. This sucks.
    · Reply · Share
  • chrishudson1chrishudson1 51 replies1 threads Junior Member
    @MaineLonghorn Have heard the same response from local banks in my region regarding SBA loans - seems somewhat weird that they aren't in all honesty.
    · Reply · Share
  • surfcitysurfcity 2735 replies61 threads Senior Member
    Here is a link to the application and other info: https://home.treasury.gov/policy-issues/top-priorities/cares-act/assistance-for-small-businesses

    Hmmmmm @MaineLonghorn you're the second person who told me TD is not doing these loans, which means they are totally screwing up their customers, since you can't get a loan from a bank unless you already bank there!
    · Reply · Share
  • MaineLonghornMaineLonghorn 41937 replies2267 threads Super Moderator
    edited April 3
    OK, TD Bank is on board now. I have filled out the application. The assistant manager at our branch told me the SBA hasn't communicated how all of this is supposed to work, so they can't take applications yet. This young man worked with my son a few years back, so I know he will keep me in the loop as soon as they are ready to accept our info.
    edited April 3
    · Reply · Share
  • politepersonpoliteperson 615 replies4 threads Member
    When I applied for the EIDL, I’m pretty sure the checkbox indicated that I was requesting the advance “of 10k”. I was just helping a friend go through this and he noticed the language has now changed to “up to 10k”. Either way, no one I know has heard anything since applying. It’ll be interesting to see if people get what they expect from this program. I’ve also seen conflicting guidance on whether amounts up to 200k require a personal guarantee.

    Completed the PPP app through the bank this morning. As I understand it, they then need to process it and submit to SBA. With the cap on the program and the first come, first served approach I worry that many will be left out.
    · Reply · Share
  • milee30milee30 2916 replies18 threads Senior Member
    edited April 3
    So far, not working terribly smoothly. Nobody knows how the details work. There are some basic requirements - apps for the PPA must be made through the business' lender through which the business has an existing (prior to 2/15/20) banking and lending relationship.

    Our main business checking is with Bank of America. But since we don't have a "lending relationship" with them (never borrowed any $), they can't process a PPA app for us.

    We have a "lending relationship" and business checking account with a smaller bank, but they're unsure if they can process a PPA app because our business is structured so that we have two legal entities for liability protection purposes. One legal entity holds the real estate (which is where the lending relationship is established - mortgage for the building) and another legal entity holds our operations and employees. So I could apply for a loan for the real estate entity since that entity has a business checking account and lending relationship but when it comes time to prove our payroll and utilities, that proof would come from the other entity. For tax purposes, they are recognized as consolidated under common ownership and that's also how the bank processed the real estate loan (using the operations of the second company as the proof of income), but nobody knows if this is acceptable for this SBA program. Sigh. Of course nobody can answer these questions. And it's probably moot since this smaller bank hasn't been able to get their online application working anyway.

    I've tracked down a very small, somewhat local (35 miles away) bank that is a Community Development Financial Institution and is supposedly taking apps from business who do not currently have a "lending relationship" with their regular bank. Filled out their online app and am waiting to hear back from them... probably shouldn't hold my breath.
    edited April 3
    · Reply · Share
Sign In or Register to comment.

Recent Activity