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COVID19 Resources for small businesses - wading through all the info!
surfcity
2743 replies61 threads Senior Member
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.
118 replies 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.
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Replies to: COVID19 Resources for small businesses - wading through all the info!
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.
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!
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.
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.