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(Sent May 18,2020)

Fairfax County creates $25m grant program for small businesses, nonprofits

The Fairfax County Board of Supervisors voted Tuesday to create the $25 million Fairfax Relief Initiative to Support Employers (Fairfax RISE) grant program to assist small businesses and nonprofits affected by the economic downturn created by the COVID-19 pandemic. The program, the first of its kind in the county, will be funded using federal CARES Act funds provided to the county government.

“I am very excited about this program – the first of its kind in Fairfax County. Our hope is that these grants will help small businesses and nonprofits emerge from these difficult times, retain employees, and be prepared to grow in the future,” said Fairfax County Board of Supervisors Chairman Jeffrey C. McKay. “We want to support the many small businesses and nonprofits that are crucial to the Fairfax County community and economy.”

Click here to fill out a county form to be notified when the grant application is available in June.

The program’s primary purpose is to provide immediate relief to small businesses and nonprofits impacted by the COVID-19 pandemic. Fairfax County hopes to help small businesses and organizations remain in business through the COVID-19 emergency and address gaps that may exist among complementary programs.

Fairfax RISE will offer grants to qualified businesses or nonprofits that will not have to be repaid. It also specifically establishes a minimum allocation of 30 percent of the program’s total dollars — or $7.5 million — toward awards for minority-, veteran-, and woman- owned businesses.

Not only have these kinds of businesses historically faced difficulty obtaining financing, but they also make a major contribution to the county’s economy. Minority-owned companies with employees account for 32 percent of businesses in Fairfax County, and collectively, all minority, women and veteran-owned businesses employ 80,000 people in the county with total annual revenues of $14.4 billion.

The grant application process is expected to begin in early June 2020. To be eligible, applicants must be established and have one or more location(s) in Fairfax County, including the principal place of business. Fairfax County includes businesses and nonprofit organizations located in the towns of Herndon, Vienna and Clifton. Additionally, awardees must have less than 50 total employees across all locations, have been in operation over one year; and, with the exception of nonprofits, have a valid Business, Professional and Occupational License (BPOL).

The amount of Fairfax RISE awards will be based upon the number of full-time equivalent employees:

  • 1 to 10 employees: $10,000
  • 11 to 25 employees: $15,000
  • 26 to 49 employees: $20,000

The grant can be used for:

  • Employee compensation (including wages and benefits)
  • Working capital
  • Equipment
  • Inventory
  • Rent
  • Other business critical operating expenses

Funding must be used for an eligible expense to mitigate business interruptions for the grant awardee business. No grant funds can be used to pay debts to close the business or start a new business.

“These are unprecedented times, economically, and I am so pleased to see the  Board of Supervisors continue to step up with unprecedented programs to help the Fairfax County small business community, especially minority-, woman- and veteran-owned businesses that are a critical element of the local economy, get through the COVID-related slowdown,” said Victor Hoskins, president and CEO of the FCEDA. “This grant program is an important component in the arsenal of resources that have been marshaled at the local, state and federal levels to help companies survive and prepare for the future.”

The $25 million Small Business and Nonprofit Relief Grant Program is in addition to two other recently announced Fairfax County small business and non-profit programs to address the COVID-19 economic crisis. This includes the $2.5 million Small Business COVID Recovery Microloan Fund and the $25 million Safety-Net Non-Profit Grant Program.

The Department of Economic Initiatives will oversee and monitor the Fairfax RISE grant program.  For more information visit the Fairfax County website or contact the Department of Economic Initiatives at Economicinitiatives@fairfaxcounty.gov or call 703-324-5171.

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(Sent May 11, 2020)

“Don’t count the days. Make the days count.” -Muhammed Ali

SBSD’s update this week includes updated Frequently Asked Questions for the Payroll Protection Program (PPP). Information is current as of May 11, 2020. This SBSD update is prepared for Small Businesses. For a complete FAQ, please visit   Paycheck-Protection-Program-Frequently-Asked-Questions

 

PPP Updated Frequently Asked Questions and Guidance as of May 11, 2020

The information provided and the guidance provided in this document are SBA’s interpretation of the CARES Act and of the Paycheck Protection Program Interim Final Rule (“PPP Interim Final Rule”). PPP Interim Final Rule April 15, 2020.

The information provided below is accurate, to the best of our
agency’s knowledge as of May 11, 2020

QUESTION:
SBA reminded borrowers to review carefully the required certification on the Borrower Application Form that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” SBA guidance and regulations provide that any borrower who applied for a PPP loan prior to April 24, 2020 and repays the loan in full by May 7, 2020 will be deemed by SBA to have made the required certification in good faith. Is it possible for a borrower to obtain an extension of the May 7, 2020 repayment date?

Answer:
SBA is extending the repayment date for this safe harbor to May 14, 2020. Borrowers do not need to apply for this extension. This extension will be promptly implemented through a revision to the SBA’s interim final rule providing the safe harbor. SBA intends to provide additional guidance on how it will review the certification prior to May 14, 2020.

QUESTION:
How do the SBA’s affiliation rules at 13 C.F.R. 121.301(f) apply with regard to counting the employees of foreign and U.S. affiliates?

Answer:
For purposes of the PPP’s 500 or fewer employee size standard, an applicant must count all of its employees and the employees of its U.S and foreign affiliates, absent a waiver of or an exception to the affiliation rules. 13 C.F.R. 121.301(f)(6). Business concerns seeking to qualify as a “small business concern” under section 3 of the Small Business Act (15 U.S.C. 632) on the basis of the employee-based size standard must do the same.

QUESTION:
Is an employer that repays its PPP loan by the safe harbor deadline (May 14, 2020) eligible for the Employee Retention Credit?

Answer:
Yes. An employer that applied for a PPP loan, received payment, and repays the loan by the safe harbor deadline (May 14, 2020) will be treated as though the employer had not received a covered loan under the PPP for purposes of the Employee Retention Credit. Therefore, the employer will be eligible for the credit if the employer is otherwise an eligible employer for purposes of the credit.

In the News……

Governor Northam’s Plan to Ease Health Restrictions beginning May 15, 2020 Forward Virginia  

 

Virginia needs to keep doing what we’re doing and plan for the next phase.

Metrics for Phase One:

  • Moving downward: Percentage of positive tests over 14 days
  • Moving downward: Hospitalizations over 14 days
  • Enough hospital beds & intensive care capacity
  • Increasing & sustainable supply of PPE

Phase One looks like this:

  • Some businesses re-open with strict safety restrictions
  • Continued social distancing
  • Continued teleworking
  • Face coverings recommended in public

 

Stay tuned for continuous updates!

Business Recovery

The Business Recovery webpage Business Recovery  has been designed by the Virginia Small Business Development Center (SBDC) Network, to assist owners plan and execute their new strategies as they reopen their businesses. The guidelines are broken down for specific industries and offer detailed considerations.   While business owners can use them by themselves, they were designed to ideally be used in collaboration with an expert business consultant in your  local SBDC.

Grants and Other Assistance Programs…..

The  Virginia 30 Day Fund , launched by a tech entrepreneur, provides 30-day loans to small businesses waiting for federal funds. Businesses must employ between 3-30 people, be based in Virginia and operating for at least one year, and owned and operated by a Virginia resident. Businesses do not need to repay the loans, although they are encouraged to “pay it forward” to another Virginia small business by repaying the Fund. The application is designed to be completed in 10 minutes or less, and approval takes place within three days, with funds transferred immediately.

Arlington County  has created the Arlington Small Business Emergency GRANT (Giving Resiliency Assets Near Term) Program to help small businesses and nonprofits with fewer than 50 employees and demonstrated revenue loss of 35 percent or more. The County is redirecting $674,000 in existing funds to capitalize the Program. Several other organizations are contributing to the Program to help small businesses in specific neighborhoods. For example, the Crystal City Business Improvement District, in Arlington, has contributed $100,000 for grants to businesses in the Pentagon City, Crystal City, and Potomac Yard neighborhoods. As of April 27, the Program had not yet begun accepting applications.

The  Town of Bedford  and its Economic Development Authority announced a $150,000 grant program for small businesses on April 27, offering grants of up to $5,000 to small businesses affected by the COVID-19 pandemic. The program is funded by existing EDA funds, meal tax revenue, the Town’s unrestricted fund balance, and electricity and utility revenues. The program is open to retail businesses and restaurants with a brick-and-mortar location in Bedford, a valid business license, and a demonstrated revenue loss of 25 percent or more. The program’s deadline is May 15.

The City of Charlottesville is offering three small business assistance programs. The Building Resilience Among Charlottesville Entrepreneurs (BRACE) Grant program offers grants of up to $2,000 for local businesses. The Business Equity Fund (BEF) Resiliency Loan program offers loans of up to $5,000 for socially disadvantaged businesses, with loans deferred for three months. The Growing Opportunities (GO) Hire Grant program offers grants in varied amounts for wage subsidies and workforce training.

Danville’s  Industrial Development Authority voted unanimously to create three emergency grant and loan programs to help local small businesses: a $300,000 emergency loan program, a $75,000 marketing and e-commerce matching grant, and $50,000-75,000 in small business rent relief. The emergency loan program, which will charge no interest for the first year, is designed as a stopgap until businesses received a replacement loan from the SBA’s Economic Injury Disaster Loan Program. The loan program is capitalized by the IDA’s city-funded loan account and from the City’s economic development office’s incentive account. The $75,000 matching grant is funded by the economic development office’s incentive account and the River District Association. The small business rent relief program will offer grants of up to $3,000 to provide rent reimbursement for one month. Like the matching grant, it is funded by the economic development office’s incentive account and the River District Association.

The  Town of South Boston  has created a $250,000 small business zero-interest loan fund to support small businesses affected by the COVID-19 pandemic. The program is funded with money from the Virginia Main Street Program, housed within the Virginia Department of Housing and Community Development. The program is open to businesses with no more than 30 employees. Loans of up to $5,000 are available, with repayment deferred for six months and the loan then paid off over a 30-month term. Chain stores are not eligible.

The  City of Staunton and the Staunton Creative Community Fund  have partnered to create a $100,000 Emergency-Disaster Relief Loan Fund for small businesses. Loans from $1,000-5,000 are available, with 2-3 percent interest and repayment deferred for up to six months.

On April 30, the City of Williamsburg created a COVID-19 Business Relief Grant, offering grants to local businesses for half of the amount they paid in Business, Professional, and Occupation taxes in 2019. Applications will be available the week of May 4 and are due by June 1. Only non-essential businesses are eligible. The program will be capitalized with money redirected from the City’s Tourism Development Grant Fund.

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(Sent May 5, 2020)

A smooth sea never made a skilled sailor” -Franklin D. Roosevelt

SBSD’s update this week includes updated Frequently Asked Questions for the Payroll Protection Program (PPP). Information is current as of May 5, 2020. This SBSD update is prepared for Small Businesses. For a complete FAQ, please visit   Paycheck-Protection-Program-Frequently-Asked-Questions


PPP Updated Frequently Asked Questions and Guidance as of May 5, 2020

The information provided and the guidance provided in this document are SBA’s interpretation of the CARES Act and of the Paycheck Protection Program Interim Final Rule (“PPP Interim Final Rule”). PPP Interim Final Rule April 15, 2020.

The information provided below is accurate, to the
best of our agency’s knowledge as of May 5, 2020

QUESTION:
Do businesses owned by private companies with adequate sources of liquidity to support the business’s ongoing operations qualify for a PPP loan?

Answer:
In addition to reviewing applicable affiliation rules to determine eligibility, all borrowers must assess their economic need for a PPP loan under the standard established by the CARES Act and the PPP regulations at the time of the loan application. Although the CARES Act suspends the ordinary requirement that borrowers must be unable to obtain credit elsewhere (as defined in section 3(h) of the Small Business Act), borrowers still must certify in good faith that their PPP loan request is necessary. Specifically, before submitting a PPP application, all borrowers should review carefully the required certification that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.”

Borrowers must make this certification in good faith, taking into account their current business activity and their ability to access other sources of liquidity sufficient to support their ongoing operations in a manner that is not significantly detrimental to the business. For example, it is unlikely that a public company with substantial market value and access to capital markets will be able to make the required certification in good faith, and such a company should be prepared to demonstrate to SBA, upon request, the basis for its certification.

Lenders may rely on a borrower’s certification regarding the necessity of the loan request. Any borrower that applied for a PPP loan prior to the issuance of this guidance and repays the loan in full by May 7, 2020 will be deemed by SBA to have made the required certification in good faith.

QUESTION:
Section 1102 of the CARES Act provides that PPP loans are available only to applicants that were “in operation on February 15, 2020.” Is a business that was in operation on February 15, 2020 but had a change in ownership after February 15, 2020 eligible for a PPP loan?

Answer:
Yes. As long as the business was in operation on February 15, 2020, if it meets the other eligibility criteria, the business is eligible to apply for a PPP loan regardless of the change in ownership. In addition, where there is a change in ownership effectuated through a purchase of substantially all assets of a business that was in operation on February 15.

The business acquiring the assets will be eligible to apply for a PPP loan even if the change in ownership results in the assignment of a new tax ID number and even if the acquiring business was not in operation until after February 15, 2020. If the acquiring business has maintained the operations of the pre-sale business, the acquiring business may rely on the historic payroll costs and headcount of the pre-sale business for the purposes of its PPP application, except where the pre-sale business had applied for and received a PPP loan.

The Administrator, in consultation with the Secretary, has determined that the requirement that a business “was in operation on February 15, 2020” should be applied based on the economic realities of the business’s operations

QUESTION:
Will SBA review individual PPP loan files?

Answer:
Yes. SBA reminded all borrowers of an important certification required to obtain a PPP loan. To further ensure PPP loans are limited to eligible borrowers in need, the SBA has decided, in consultation with the Department of the Treasury, that it will review all loans in excess of $2 million, in addition to other loans as appropriate, following the lender’s submission of the borrower’s loan forgiveness application.

Additional guidance implementing this procedure will be forthcoming. The outcome of SBA’s review of loan files will not affect SBA’s guarantee of any loan for which the lender complied with the lender obligations set forth in paragraphs III.3.b(i)-(iii) of the Paycheck Protection Program Rule (April 2, 2020).

QUESTION:
Will a borrower’s PPP loan forgiveness amount (pursuant to section 1106 of the CARES Act and SBA’s implementing rules and guidance) be reduced if the borrower laid off an employee, offered to rehire the same employee, but the employee declined the offer?

Answer:
No. As an exercise of the Administrator’s and the Secretary’s authority under Section 1106(d)(6) of the CARES Act to prescribe regulations granting de minimis exemptions from the Act’s limits on loan forgiveness, SBA and Treasury intend to issue an interim final rule excluding laid-off employees whom the borrower offered to rehire (for the same salary/wages and same number of hours) from the CARES Act’s loan forgiveness reduction calculation.

The interim final rule will specify that, to qualify for this exception, the borrower must have made a good faith, written offer of rehire, and the employee’s rejection of that offer must be documented by the borrower. Employees and employers should be aware that employees who reject offers of re-employment may forfeit eligibility for continued unemployment compensation.

QUESTION:
Can a seasonal employer that elects to use a 12-week period between May 1, 2019 and September 15, 2019 to calculate its maximum PPP loan amount under the interim final rule issued by Treasury on April 27, 2020, make all the required certifications on the Borrower Application Form?

Answer:
Yes. The Borrower Application Form requires applicants to certify that “The Applicant is eligible to receive a loan under the rules in effect at the time this application is submitted that have been issued by the Small Business Administration (SBA) implementing the Paycheck Protection Program.” On April 27, 2020, Treasury issued an interim final rule allowing seasonal borrowers to use an alternative base period for purposes of calculating the loan amount for which they are eligible under the PPP.

An applicant that is otherwise in compliance with applicable SBA requirements, and that complies with Treasury’s interim final rule on seasonal workers, will be deemed eligible for a PPP loan under SBA rules. Instead of following the instructions on page 3 of the Borrower Application Form for the time period for calculating average monthly payroll for seasonal businesses, an applicant may elect to use the time period in Treasury’s interim final rule on seasonal workers.

QUESTION:
Do nonprofit hospitals exempt from taxation under section 115 of the Internal Revenue Code qualify as “nonprofit organizations” under section 1102 of the CARES Act?

Answer:
Section 1102 of the CARES Act defines the term “nonprofit organization” as “an organization that is described in section 501(c)(3) of the Internal Revenue Code of 1986 and that is exempt from taxation under section 501(a) of such Code.” The Administrator, in consultation with the Secretary of the Treasury, understands that nonprofit hospitals exempt from taxation under section 115 of the Internal Revenue Code are unique in that many such hospitals may meet the description set forth in section 501(c)(3) of the Internal Revenue Code to qualify for tax exemption under section 501(a), but have not sought to be recognized by the IRS as such because they are otherwise fully tax-exempt under a different provision of the Internal Revenue Code.

Accordingly, the Administrator will treat a nonprofit hospital exempt from taxation under section 115 of the Internal Revenue Code as meeting the definition of “nonprofit organization” under section 1102 of the CARES Act if the hospital reasonably determines, in a written record maintained by the hospital, that it is an organization described in section 501(c)(3) of the Internal Revenue Code and is therefore within a category of organization that is exempt from taxation under section 501(a).

This determination need not account for the ancillary conditions set forth in section 501(r) of the Internal Revenue Code and elsewhere associated with securing the tax exemption under that section. Section 501(r) states that a hospital organization shall not be treated as described in section 501(c)(3) unless it meets certain community health and other requirements. However, section 1102 of the CARES Act defines the term “nonprofit organization” solely by reference to section 501(c)(3), and section 501(r) does not amend section 501(c)(3). Therefore, for purposes of the PPP, the requirements of section 501(r) do not apply to the determination of whether an organization is “described in section 501(c)(3).

The hospital’s certification of eligibility on the Borrower Application Form cannot be made without this determination. This approach helps accomplish the statutory purpose of ensuring that a broad range of borrowers, including entities that are helping to lead the medical response to the ongoing pandemic, can benefit from the loans provided under the PPP. This guidance is solely for purposes of qualification as a “nonprofit organization” under section 1102 of the CARES Act and related purposes of the CARES Act, and does not have any consequences for federal tax law purposes. Nonprofit hospitals should also review all other applicable eligibility criteria, including the Interim Final Rules on Promissory Notes, Authorizations, Affiliation, and Eligibility (April 28, 2020) regarding an important limitation on ownership by state or local governments. 85 FR 23450, 23451

Need Assistance?

Call 2-1-1 Free service with information on available community services including feeding sites for children, families, and seniors. Find information or chat online at  www.211Virginia.org.  Those who are out of state, using a videophone, disposable phone, or relay service please dial 1-800-230-6977.

Coronavirus Hotline 1-877-ASK-VDH3
24 Hours a Day, 7 days a week (1-877-275-8343) Virginia Department of Health Coronavirus Hotline

https://www.wbenc.org/covid19

https://www.covid19businesscenter.com/

Words for Thought…

During this time of public health crisis, people across all communities are feeling the stress of the health threat: concerns about becoming ill, uncertainty about the future, possible financial strain, and dramatic changes in daily routines. Individuals respond to stress in different ways and some, especially those with mental health conditions, are prone to negative impact on their mood, anxiety, sleep and overall well-being. This is a critically important time for everyone to take extra care to protect their mental health. H ere are some practical tips to help you be as proactive as possible about your mental health.

Take care of your mental and physical health: the two are interrelated and we know that taking care of our physical health can also support our mental health

  • Be vigilant about getting good sleep. This is a time to worry less about getting things done, and more about making sure you are getting enough sleep and rest. Sleep is restorative and important to our health, and we all want to help our immune systems right now. Basic sleep hygiene rules include: not using sedatives or alcohol to sleep, avoiding stimulants such as caffeine close to bedtime, keeping to the same sleep hours, establishing a relaxing bedtime routine, and making sure that the sleep environment promotes restfulness.
  • Try to move your body as much as possible throughout your day. This includes stretching, finding yoga videos online, walking around your house or property, dancing, and playing active video games. Since you may not be able to access your gym or engage in your usual activities, this may require some creative thinking. If you find a good resource online that works for you, share it with your colleagues.
  • There are many meditation and breathing apps. A simple breathing exercise encourages inhaling for four seconds, holding the breath for seven seconds, and exhaling for eight seconds (4-7-8 for short).
  • Drink water regularly and limit alcohol intake. Alcohol can worsen depression over time.
  • Follow doctors’ orders to take prescribed medication on time. Check in with your pharmacy to see if they have contact-free pickup and/or delivery services if needed.


Do your best to stay focused on what you can control

  • Engage in activities you don’t normally have time for: play that instrument that’s been sitting in the corner gathering dust; research online videos on things you’ve always wanted to know or found interesting; journal; watch nature videos; fold your laundry; meditate; or play with your pets.
  • Limit news intake (including news on social media) if it is making you feel more anxious than connected. For example, turn off TV news and limit your intake to two 15-minute periods a day and read news from trusted sources in addition to what you find on social media.
  • Stick to a daily routine. If you are working from home, don’t work from bed. Get up, get dressed and shower at your usual times. Have meals when you usually do, and put the kids to bed on time.

Make your environment safe and comfortable. Now is a good time to check your environment to see what might help you feel comfortable and safe. Pull out “creature comforts” like favorite blankets, scented candles, etc. It’s also a good time to make sure your environment is safe.

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(Sent April 29, 2020)

“A single act of kindness throws out roots in all directions, and the roots spring up and make new trees”  -Amelia Earhart

SBSD’s update this week includes updated Frequently Asked Questions for the Payroll Protection Program (PPP). Information is current as of April 29, 2020.

The FAQs are not inclusive. This SBSD update is prepared for Small Businesses. For a complete FAQ, please visit   https://www.sba.gov/document/support–faq-lenders-borrowers
The Small Business Administration has resumed accepting PPP loan applications on Monday, April 27 at 10:30 AM EDT from approved lenders on behalf of any eligible borrower. This will ensure that SBA has properly coded the system to account for changes made by the legislation.
PPP Updated Frequently Asked Questions and Guidance as of April 29, 2020

The information provided and the guidance provided in this document are SBA’s interpretation of the CARES Act and of the Paycheck Protection Program Interim Final Rule (“PPP Interim Final Rule”). PPP Interim Final Rule April 15, 2020.

The information provided below is accurate, to the best of our agency’s knowledge as of April 28, 2020. The $484 Billion stimulus plan earmarks $320 Billion to the PPP program ($310 Billion to replenish the loan program and $10 Billion for administrative costs), $60 Billion is earmarked for Banks ($30 million for banks with less than $10 Billion in Assets), $75 Billion to Hospitals and Health Care Providers and $25 Billion for COVID-19 testing.

 

QUESTION:
Paragraph 3.b.iii of the PPP Interim Final Rule states that lenders must “[c]onfirm the dollar amount of average monthly payroll costs for the preceding calendar year by reviewing the payroll documentation submitted with the borrower’s application.” Does that require the lender to replicate every borrower’s calculations? (this question was published April 3, 2020)

Answer:
No. Providing an accurate calculation of payroll costs is the responsibility of the borrower, and the borrower attests to the accuracy of those calculations on the Borrower Application Form. Lenders are expected to perform a good faith review, in a reasonable time, of the borrower’s calculations and supporting documents concerning average monthly payroll cost. For example, minimal review of calculations based on a payroll report by a recognized third-party payroll processor would be reasonable. In addition, as the PPP Interim Final Rule indicates, lenders may rely on borrower representations, including with respect to amounts required to be excluded from payroll costs. If the lender identifies errors in the borrower’s calculation or material lack of substantiation in the borrower’s supporting documents, the lender should work with the borrower to remedy the issue.


QUESTION:
Are small business concerns (as defined in section 3 of the Small Business Act, 15 U.S.C. 632) required to have 500 or fewer employees to be eligible borrowers in the PPP?
Answer:
No. Small business concerns can be eligible borrowers even if they have more than 500 employees, as long as they satisfy the existing statutory and regulatory definition of a “small business concern” under section 3 of the Small Business Act, 15 U.S.C. 632. A business can qualify if it meets the SBA employee-based or revenue- based size standard corresponding to its primary industry.

Go to www.sba.gov/size for the industry size standards.  Additionally, a business can qualify for the Paycheck Protection Program as a small business concern if it met both tests in SBA’s “alternative size standard” as of March 27, 2020: (1) maximum tangible net worth of the business is not more than $15 million; and (2) the average net income after Federal income taxes (excluding any carry-over losses) of the business for the two full fiscal years before the date of the application is not more than $5 million. A business that qualifies as a small business concern under section 3 of the Small Business Act, 15 U.S.C. 632, may truthfully attest to its eligibility for PPP loans on the Borrower Application Form, unless otherwise ineligible.


QUESTION:
Does my business have to qualify as a small business concern (as defined in section 3 of the Small Business Act, 15 U.S.C. 632) in order to participate in the PPP?

Answer:
No. In addition to small business concerns, a business is eligible for a PPP loan if the business has 500 or fewer employees whose principal place of residence is in the United States, or the business meets the SBA employee-based size standards for the industry in which it operates (if applicable). Similarly, PPP loans are also available for qualifying tax-exempt nonprofit organizations described in section 501(c)(3) of the Internal Revenue Code (IRC), tax-exempt veterans organization described in section 501(c)(19) of the IRC, and Tribal business concerns described in section 31(b)(2)(C) of the Small Business Act that have 500 or fewer employees whose principal place of residence is in the United States, or meet the SBA employee-based size standards for the industry in which they operate.


QUESTION:
Are lenders required to make an independent determination regarding applicability of affiliation rules under 13 C.F.R. 121.301(f) to borrowers?
Answer:
No. It is the responsibility of the borrower to determine which entities (if any) are its affiliates and determine the employee headcount of the borrower and its affiliates. Lenders are permitted to rely on borrowers’ certifications.

QUESTION:
Are borrowers required to apply SBA’s affiliation rules under 13 C.F.R. 121.301(f)?

Answer:
Yes. Borrowers must apply the affiliation rules set forth in SBA’s Interim Final Rule on Affiliation. A borrower must certify on the Borrower Application Form that the borrower is eligible to receive a PPP loan, and that certification means that the borrower is a small business concern as defined in section 3 of the Small Business Act (15 U.S.C. 632), meets the applicable SBA employee-based or revenue-based size standard, or meets the tests in SBA’s alternative size standard, after applying the affiliation rules, if applicable. SBA’s existing affiliation exclusions apply to the PPP, including, for example the exclusions under 13 CFR 121.103(b)(2).


QUESTION:
The affiliation rule based on ownership (13 C.F.R. 121.301(f)(1)) states that SBA will deem a minority shareholder in a business to control the business if the shareholder has the right to prevent a quorum or otherwise block action by the board of directors or shareholders. If a minority shareholder irrevocably gives up those rights, is it still considered to be an affiliate of the business?

Answer:
No. If a minority shareholder in a business irrevocably waives or relinquishes any existing rights specified in 13 C.F.R. 121.301(f)(1), the minority shareholder would no longer be an affiliate of the business (assuming no other relationship that triggers the affiliation rules).


QUESTION:
The CARES Act excludes from the definition of payroll costs any employee compensation in excess of an annual salary of $100,000. Does that exclusion apply to all employee benefits of monetary value?

Answer:
No. The exclusion of compensation in excess of $100,000 annually applies only to cash compensation, not to non-cash benefits, including:
employer contributions to defined-benefit or defined-contribution retirement plans
payment for the provision of employee benefits consisting of group health care coverage, including insurance premiums
Payments of state and local taxes assessed on compensation of employees.


QUESTION:
Do PPP loans cover paid sick leave?

Answer:
Yes. PPP loans covers payroll costs, including costs for employee vacation, parental, family, medical, and sick leave. However, the CARES Act excludes qualified sick and family leave wages for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act (Public Law 116–127). The Paid Sick Leave Refundable Credit covid-19-related-tax-credits-small-and-midsize-businesses


QUESTION:
My small business is a seasonal business whose activity increases from April to June. Considering activity from that period would be a more accurate reflection of my business’s operations. However, my small business was not fully ramped up on February 15, 2020. Am I still eligible?

Answer:
In evaluating a borrower’s eligibility, a lender may consider whether a seasonal borrower was in operation on February 15, 2020 or for an 8-week period between February 15, 2019 and June 30, 2019.


QUESTION:
What if an eligible borrower contracts with a third-party payer such as a payroll provider or a Professional Employer Organization (PEO) to process payroll and report payroll taxes?

Answer:
SBA recognizes that eligible borrowers that use PEOs or similar payroll providers are required under some state registration laws to report wage and other data on the Employer Identification Number (EIN) of the PEO or other payroll provider. In these cases, payroll documentation provided by the payroll provider that indicates the amount of wages and payroll taxes reported to the IRS by the payroll provider for the borrower’s employees will be considered acceptable PPP loan payroll documentation. Relevant information from a Schedule R (Form 941), Allocation Schedule for Aggregate Form 941 Filers, attached to the PEO’s or other payroll provider’s Form 941, Employer’s Quarterly Federal Tax Return, should be used if it is available; otherwise, the eligible borrower should obtain a statement from the payroll provider documenting the amount of wages and payroll taxes. In addition, employees of the eligible borrower will not be considered employees of the eligible borrower’s payroll provider or PEO.


QUESTION:
May lenders accept signatures from a single individual who is authorized to sign on behalf of the borrower?

Answer:
Yes. However, the borrower should bear in mind that, as the Borrower Application Form indicates, only an authorized representative of the business seeking a loan may sign on behalf of the business. An individual’s signature as an “Authorized Representative of Applicant” is a representation to the lender and to the U.S. government that the signer is authorized to make the certifications, including with respect to the applicant and each owner of 20% or more of the applicant’s equity, contained in the Borrower Application Form. Lenders may rely on that representation and accept a single individual’s signature on that basis.


QUESTION:
I need to request a loan to support my small business operations in light of current economic uncertainty. However, I pleaded guilty to a felony crime a very long time ago. Am I still eligible for the PPP?
Answer:
Yes. Businesses are only ineligible if an owner of 20 percent or more of the equity of the applicant is presently incarcerated, on probation, on parole; subject to an indictment, criminal information, arraignment, or other means by which formal criminal charges are brought in any jurisdiction; or, within the last five years, for any felony, has been convicted; pleaded guilty; pleaded nolo contendere; been placed on pretrial diversion; or been placed on any form of parole or probation (including probation before judgment)

QUESTION:
Should payments that an eligible borrower made to an independent contractor or sole proprietor be included in calculations of the eligible borrower’s payroll costs?

Answer:
No. Any amounts that an eligible borrower has paid to an independent contractor or sole proprietor should be excluded from the eligible business’s payroll costs. However, an independent contractor or sole proprietor will itself be eligible for a loan under the PPP, if it satisfies the applicable requirements .


QUESTION:
How should a borrower account for federal taxes when determining its payroll costs for purposes of the maximum loan amount, allowable uses of a PPP loan, and the amount of a loan that may be forgiven?

Answer:
Under the Act, payroll costs are calculated on a gross basis without regard to (i.e., not including subtractions or additions based on) federal taxes imposed or withheld, such as the employee’s and employer’s share of Federal Insurance Contributions Act (FICA) and income taxes required to be withheld from employees. As a result, payroll costs are not reduced by taxes imposed on an employee and required to be withheld by the employer, but payroll costs do not include the employer’s share of payroll tax. For example, an employee who earned $4,000 per month in gross wages, from which $500 in federal taxes was withheld, would count as $4,000 in payroll costs. The employee would receive $3,500, and $500 would be paid to the federal government. However, the employer-side federal payroll taxes imposed on the $4,000 in wages are excluded from payroll costs under the statute . The definition of “payroll costs” in the CARES Act, 15 U.S.C. 636(a)(36)(A)(viii), excludes “taxes imposed or withheld under chapters 21, 22, or 24 of the Internal Revenue Code of 1986 during the covered period,” defined as February 15, 2020, to June 30, 2020. As described above, the SBA interprets this statutory exclusion to mean that payroll costs are calculated on a gross basis, without subtracting federal taxes that are imposed on the employee or withheld from employee wages. Unlike employer-side payroll taxes, such employee-side taxes are ordinarily expressed as a reduction in employee take-home pay; their exclusion from the definition of payroll costs means payroll costs should not be reduced based on taxes imposed on the employee or withheld from employee wages. This interpretation is consistent with the text of the statute and advances the legislative purpose of ensuring workers .


QUESTION:
I filed or approved a loan application based on the version of the PPP Interim Final Rule published on April 2, 2020. Do I need to take any action based on the updated guidance in these FAQs?

Answer:
No. Borrowers and lenders may rely on the laws, rules, and guidance available at the time of the relevant application. However, borrowers whose previously submitted loan applications have not yet been processed may revise their applications based on clarifications reflected in these FAQs.


QUESTION:
The amount of forgiveness of a PPP loan depends on the borrower’s payroll costs over an eight-week period; when does that eight-week period begin?

Answer:
The eight-week period begins on the date the lender makes the first disbursement of the PPP loan to the borrower. The lender must make the first disbursement of the loan no later than ten calendar days from the date of loan approval.


QUESTION:
Do businesses owned by large companies with adequate sources of liquidity to support the business’s ongoing operations qualify for a PPP loan?

Answer:
In addition to reviewing applicable affiliation rules to determine eligibility, all borrowers must assess their economic need for a PPP loan under the standard established by the CARES Act and the PPP regulations at the time of the loan application. Although the CARES Act suspends the ordinary requirement that borrowers must be unable to obtain credit elsewhere (as defined in section 3(h) of the Small Business Act), borrowers still must certify in good faith that their PPP loan request is necessary. Specifically, before submitting a PPP application, all borrowers should review carefully the required certification that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” Borrowers must make this certification in good faith, taking into account their current business activity and their ability to access other sources of liquidity sufficient to support their ongoing operations in a manner that is not significantly detrimental to the business. For example, it is unlikely that a public company with substantial market value and access to capital markets will be able to make the required certification in good faith, and such a company should be prepared to demonstrate to SBA, upon request, the basis for its certification. Lenders may rely on a borrower’s certification regarding the necessity of the loan request. Any borrower that applied for a PPP loan prior to the issuance of this guidance and repays the loan in full by May 7, 2020 will be deemed by SBA to have made the required certification in good faith


QUESTION:
Does the cost of a housing stipend or allowance provided to an employee as part of compensation count toward payroll costs?

Answer:
Yes. Payroll costs includes all cash compensation paid to employees, subject to the $100,000 annual compensation per employee limitation.


QUESTION:
Is there existing guidance to help PPP applicants and lenders determine whether an individual employee’s principal place of residence is in the United States?

Answer:
PPP applicants and lenders may consider IRS regulations (26 CFR § 1.121-1(b)(2)) when determining whether an individual employee’s principal place of residence is in the United States.


QUESTION:
A re agricultural producers, farmers, and ranchers eligible for PPP loans?

Answer:
Yes. Agricultural producers, farmers, and ranchers are eligible for PPP loans if: (i) the business has 500 or fewer employees, or (ii) the business fits within the revenue-based sized standard, which is average annual receipts of $1 million.Additionally, agricultural producers, farmers, and ranchers can qualify for PPP loans as a small business concern if their business meets SBA’s “alternative size standard.” The As of April 26, 2020, “alternative size standard” is currently: (1) maximum net worth of the business is not more than $15 million, and (2) the average net income after Federal income taxes (excluding any carry-over losses) of the business for the two full fiscal years before the date of the application is not more than $5 million.

For all of these criteria, the applicant must include its affiliates in its calculations. Affiliation Rules


QUESTION:
Are agricultural and other forms of cooperatives eligible to receive PPP loans?

Answer:
As long as other PPP eligibility requirements are met, small agricultural cooperatives and other cooperatives may receive PPP loans.


QUESTION:
To determine borrower eligibility under the 500-employee or other applicable threshold established by the CARES Act, must a borrower count all employees or only full-time equivalent employees?

Answer:
For purposes of loan eligibility, the CARES Act defines the term employee to include “individuals employed on a full-time, part-time, or other basis.” A borrower must therefore calculate the total number of employees, including part-time employees, when determining their employee headcount for purposes of the eligibility threshold. For example, if a borrower has 200 full-time employees and 50 part-time employees each working 10 hours per week, the borrower has a total of 250 employees.

By contrast, for purposes of loan forgiveness, the CARES Act uses the standard of “full-time equivalent employees” to determine the extent to which the loan forgiveness amount will be reduced in the event of workforce reductions.

 


PPP
How to Calculate Maximum Loan Amounts-By Business Type
As of April 24, 2020

QUESTION:
I am self-employed and have no employees, how do I calculate my maximum PPP loan amount? (Note that PPP loan forgiveness amounts will depend, in part, on the total amount spent during the eight-week period following the first disbursement of the PPP loan.)
Answer:
The following methodology should be used to calculate the maximum amount that can be borrowed if you are self-employed and have no employees, and your principal place of residence is in the United States, including if you are an independent contractor or operate a sole proprietorship (but not if you are a partner in a partnership):
• Step 1: Find your 2019 IRS Form 1040 Schedule C line 31 net profit amount (if you have not yet filed a 2019 return, fill it out and compute the value). If this amount is over $100,000, reduce it to $100,000. If this amount is zero or less, you are not eligible for a PPP loan.
• Step 2: Calculate the average monthly net profit amount (divide the amount from Step 1 by 12).
• Step 3: Multiply the average monthly net profit amount from Step 2 by 2.5.

• Step 4: Add the outstanding amount of any Economic Injury Disaster Loan (EIDL) made between January 31, 2020 and April 3, 2020 that you seek to refinance, less the amount of any advance under an EIDL COVID-19 loan (because it does not have to be repaid).

Your 2019 IRS Form 1040 Schedule C must be provided to substantiate the applied-for PPP loan amount. You must also provide a 2019 IRS Form 1099-MISC detailing nonemployee compensation received (box 7), invoice, bank statement, or book of record establishing you were self-employed in 2019 and a 2020 invoice, bank statement, or book of record establishing you were in operation on February 15, 2020.


QUESTION:
I am self-employed and have employees, how do I calculate my maximum PPP loan amount (up to $10 million)? (Note that PPP loan forgiveness amounts will depend, in part, on the total amount spent during the eight-week period following the first disbursement of the PPP loan.)
Answer:
The following methodology should be used to calculate the maximum amount that can be borrowed if you are self-employed with employees, including if you are an independent contractor or operate a sole proprietorship (but not if you are a partner in a partnership):
• Step 1: Compute your 2019 payroll costs by adding the following: o 2019 IRS Form 1040 Schedule C line 31 net profit amount (if you have not yet filed a 2019 return, fill it out and compute the value); if this amount is over $100,000, reduce it to $100,000; and if this amount is less than zero, set this amount at zero;
o 2019 gross wages and tips paid to your employees whose principal place of residence is in the United States, which can be computed using 2019 IRS Form 941 Taxable Medicare wages & tips (line 5c-column 1) from each quarter plus any pre-tax employee contributions for health insurance or other fringe benefits excluded from Taxable Medicare wages & tips, subtracting any amount paid to any individual employee in excess of $100,000 and any amounts paid to any employee whose principal place of residence is outside the U.S;
o 2019 employer contributions for employee health insurance (portion of IRS Form 1040 Schedule C line 14 attributable to health insurance);
o 2019 employer contributions to employee retirement plans (IRS Form 1040 Schedule C line 19); and
o 2019 employer state and local taxes assessed on employee compensation, primarily state unemployment insurance tax (from state quarterly wage reporting forms).
• Step 2: Calculate the average monthly payroll costs amount (divide the amount from Step 1 by 12).
• Step 3: Multiply the average monthly payroll costs amount from Step 2 by 2.5.

• Step 4: Add the outstanding amount of any EIDL made between January 31, 2020 and April 3, 2020 that you seek to refinance, less the amount of    any advance under an EIDL COVID-19 loan (because it does not have to be repaid).

Your 2019 IRS Form 1040 Schedule C, IRS Form 941 and state quarterly wage unemployment insurance tax reporting form from each quarter (or equivalent payroll processor records or IRS Wage and Tax Statements), along with documentation of any retirement or health insurance contributions, must be provided to substantiate the applied-for PPP loan amount. A payroll statement or similar documentation from the pay period that covered February 15, 2020 must be provided to establish you were in operation and had employees on that date.


QUESTION:
I am a self-employed individual who reports my income on IRS Form 1040 Schedule F. What documentation must I provide in place of Schedule C and how should my maximum loan amount be determined (up to $10 million)?
Answer:
Self-employed farmers (i.e., those who report their net farm profit on IRS Form 1040 Schedule 1 and Schedule F) should use IRS Form 1040 Schedule F in lieu of Schedule C, and Schedule F line 34 net farm profit should be used to determine their loan amount in place of Schedule C line 31 net profit. The calculation is otherwise the same as for Schedule C filers above. The 2019 IRS Form 1040 Schedule 1 and Schedule F must be included with the loan application.
QUESTION:
How do partnerships apply for PPP loans and how is the maximum PPP loan amount calculated for partnerships (up to $10 million)? Should partners’ self-employment income be included on the business entity level PPP loan application or on separate PPP loan applications for each partner? (Note that PPP loan forgiveness amounts will depend, in part, on the total amount spent during the eight-week period following the first disbursement of the PPP loan.)
Answer:
T he following methodology should be used to calculate the maximum amount that can be borrowed for partnerships (partners’ self-employment income should be included on the partnership’s PPP loan application, individual partners may not apply for separate PPP loans):
• Step 1: Compute 2019 payroll costs by adding the following: o 2019 Schedule K-1 (IRS Form 1065) Net earnings from self-employment of individual U.S. based general partners that are subject to self-employment tax, computed from box 14a (reduced by any section 179 expense deduction claimed, unreimbursed partnership expenses claimed, and depletion claimed on oil and gas properties) multiplied by 0.9235,up to $100,000 per partner (if 2019 schedules have not been filed, fill them out);
o 2019 gross wages and tips paid to your employees whose principal place of residence is in the United States, if any, which can be computed using 2019 IRS Form 941 Taxable Medicare wages & tips (line 5c-column 1) from each quarter plus any pre-tax employee contributions for health insurance or other fringe benefits excluded from Taxable Medicare wages & tips, subtracting any amounts paid to any individual employee in excess of $100,000 and any amounts paid to any employee whose principal place of residence is outside the U.S;
o 2019 employer contributions for employee health insurance, if any (portion of IRS Form 1065 line 19 attributable to health insurance);
o 2019 employer contributions to employee retirement plans, if any (IRS Form 1065 line 18); and
o 2019 employer state and local taxes assessed on employee compensation, primarily state unemployment insurance tax (from state quarterly wage reporting forms), if any.
• Step 2: Calculate the average monthly payroll costs (divide the amount from Step 1 by 12).
• Step 3: Multiply the average monthly payroll costs from Step 2 by 2.5.

• Step 4: Add any outstanding amount of any EIDL made between January 31, 2020 and April 3, 2020 that you seek to refinance, less the amount of any advance under an EIDL COVID-19 loan (because it does not have to be repaid).

The partnership’s 2019 IRS Form 1065 (including K-1s) and other relevant supporting documentation if the partnership has employees, including the 2019 IRS Form 941 and state quarterly wage unemployment insurance tax reporting form from each quarter (or equivalent payroll processor records or IRS Wage and Tax Statements) along with records of any retirement or health insurance contributions, must be provided to substantiate the applied-for PPP loan amount. If the partnership has employees, a payroll statement or similar documentation from the pay period that covered February 15, 2020 must be provided to establish the partnership was in operation and had employees on that date. If the partnership has no employees, an invoice, bank statement, or book of record establishing the partnership was in operation on February 15, 2020 must instead be provided.


QUESTION:
How is the maximum PPP loan amount calculated for S corporations and C corporations (up to $10 million)? (Note that PPP loan forgiveness amounts will depend, in part, on the total amount spent during the eight-week period following the first disbursement of the PPP loan.)
Answer:
T he following methodology should be used to calculate the maximum amount that can be borrowed for corporations, including S and C corporations:
• Step 1: Compute 2019 payroll costs by adding the following: o 2019 gross wages and tips paid to your employees whose principal place of residence is in the United States, which can be computed using 2019 IRS Form 941 Taxable Medicare wages & tips (line 5c-column 1) from each quarter plus any pre-tax employee contributions for health insurance or other fringe benefits excluded from Taxable Medicare wages & tips, subtracting any amounts paid to any individual employee in excess of $100,000 and any amounts paid to any employee whose principal place of residence is outside the U.S;
o 2019 employer health insurance contributions (portion of IRS Form 1120 line 24 or IRS Form 1120-S line 18 attributable to health insurance);
o 2019 employer retirement contributions (IRS Form 1120 line 23 or IRS Form 1120-S line 17); and
o 2019 employer state and local taxes assessed on employee compensation, primarily state unemployment insurance tax (from state quarterly wage reporting forms).
• Step 2: Calculate the average monthly payroll costs (divide the amount from Step 1 by 12).
• Step 3: Multiply the average monthly payroll costs from Step 2 by 2.5.

• Step 4: Add the outstanding amount of any EIDL made between January 31, 2020 and April 3, 2020 that you seek to refinance, less the amount of any advance under an EIDL COVID-19 loan (because it does not have to be repaid).The corporation’s 2019 IRS Form 941 and state quarterly wage unemployment insurance tax reporting form from each quarter (or equivalent payroll processor records or IRS Wage and Tax Statements), along with the filed business tax return (IRS Form 1120 or IRS 1120-S) or other documentation of any retirement and health insurance contributions, must be provided to substantiate the applied-for PPP loan amount. A payroll statement or similar documentation from the pay period that covered February 15, 2020 must be provided to establish you were in operation and had employees on that date.


QUESTION:
How is the maximum PPP loan amount calculated for eligible nonprofit organizations (up to $10 million)? (Note that PPP loan forgiveness amounts will depend, in part, on the total amount spent during the eight-week period following the first disbursement of the PPP loan.)
Answer:
“Eligible nonprofit organization” means an organization that is described in section 501(c)(3) of the Internal Revenue Code of 1986 and that is exempt from taxation under section 501(a) of such Code.  The following methodology should be used to calculate the maximum amount that can be borrowed for eligible nonprofit organizations (eligible nonprofit religious institutions, see the next question):
• Step 1: Compute 2019 payroll costs by adding the following:
o 2019 gross wages and tips paid to your employees whose principal place of residence is in the United States, which can be computed using 2019 IRS Form 941 Taxable Medicare wages & tips (line 5c-column 1) from each quarter plus any pre-tax employee contributions for health insurance or other fringe benefits excluded from Taxable Medicare wages & tips, subtracting any amounts paid to any individual employee in excess of $100,000 and any amounts paid to any employee whose principal place of residence is outside the U.S;
o 2019 employer health insurance contributions (portion of IRS Form 990 Part IX line 9 attributable to health insurance);
o 2019 employer retirement contributions (IRS Form 990 Part IX line 8); and
o 2019 employer state and local taxes assessed on employee compensation, primarily state unemployment insurance tax (from state quarterly wage reporting forms).
• Step 2: Calculate the average monthly payroll costs (divide the amount from Step 1 by 12).
• Step 3: Multiply the average monthly payroll costs from Step 2 by 2.5.

• Step 4: Add the outstanding amount of any EIDL made between January 31, 2020 and April 3, 2020 that you seek to refinance, less the amount of any advance under an EIDL COVID-19 loan (because it does not have to be repaid).

The nonprofit organization’s 2019 IRS Form 941 and state quarterly wage unemployment insurance tax reporting form from each quarter (or equivalent payroll processor records or IRS Wage and Tax Statements), along with the filed IRS Form 990 Part IX or other documentation of any retirement and health insurance contributions, must be provided to substantiate the applied-for PPP loan amount. A payroll statement or similar documentation from the pay period that covered February 15, 2020 must be provided to establish you were in operation and had employees on that date. Eligible nonprofits that do not file an IRS Form 990, typically those with gross receipts less than $50,000, should see the next question.


QUESTION:
How is the maximum PPP loan amount calculated for eligible nonprofit religious institutions, veterans’ organizations, and tribal businesses (up to $10 million)? (Note that PPP loan forgiveness amounts will depend, in part, on the total amount spent during the eight-week period following the first disbursement of the PPP loan.)
Answer:
The following methodology should be used to calculate the maximum amount that can be borrowed for eligible nonprofit religious institutions, veterans organizations and tribal businesses:
• Step 1: Compute 2019 payroll costs by adding the following: o 2019 gross wages and tips paid to your employees whose principal place of residence is in the United States, which can be computed using 2019 IRS Form 941 Taxable Medicare wages & tips (line 5c-column 1) from each quarter plus any pre-tax employee contributions for health insurance or other fringe benefits excluded from Taxable Medicare wages & tips, subtracting any amounts paid to any individual employee in excess of $100,000 and any amounts paid to any employee whose principal place of residence is outside the U.S;
o 2019 employer health insurance contributions;
o 2019 employer retirement contributions and
o 2019 employer state and local taxes assessed on employee compensation, primarily state unemployment insurance tax (from state quarterly wage reporting forms).
• Step 2: Calculate the average monthly payroll costs (divide the amount from Step 1 by 12).
• Step 3: Multiply the average monthly payroll costs from Step 2 by 2.5.

• Step 4: Add any outstanding amount of any EIDL made between January 31, 2020 and April 3, 2020 that you seek to refinance, less the amount of any advance under an EIDL COVID-19 loan (because it does not have to be repaid).

The entity’s 2019 IRS Form 941 and state quarterly wage unemployment insurance tax reporting form from each quarter (or equivalent payroll processor records or IRS Wage and Tax Statements), along with documentation of any retirement and health insurance contributions, must be provided to substantiate the applied-for PPP loan amount. A payroll statement or similar documentation from the pay period that covered February 15, 2020 must be provided to establish you were in operation and had employees on that date.


QUESTION:
I am an LLC owner. Which set of instructions apply to me?

Answer:
LLCs should follow the instructions that apply to their tax filing situation, for example, whether they file as a sole proprietor, a partnership, or a corporation.


QUESTION:
What other documentation can be provided for the purpose of substantiating the applied-for PPP loan amount?
Answer:
IRS Form W-2s and IRS Form W-3 or payroll processor reports, including quarterly and annual tax reports, can be used in place of IRS Form 941. Additionally, very small businesses that file an annual IRS Form 944 instead of quarterly IRS Form 941 should rely on and provide IRS Form 944. Similarly, records from a retirement administrator can be used to document employer retirement contributions while records from a health insurance company or third-party administrator for a self-insured plan can document employer health insurance contributions.

PPP Additional Criterion for
Seasonal Employers as of April 27, 2020
QUESTION:
What does this interim final rule apply to?

Answer:
This rule applies to PPP loans issued to seasonal employers


QUESTION:
How does this rule affect the calculation of the maximum loan amount for seasonal employers?

Answer:
Under section 1102 of the CARES Act, a seasonal employer may determine its maximum loan amount for purposes of the PPP by reference to the employer’ average total monthly payments for payroll “the 12-week period beginning February 15, 2019, or at the election of the eligible [borrower], March 1, 2019, and ending June 30, 2019.” Under this interim final rule issued pursuant to section 1109 of the Act, a seasonal employer may alternatively elect to determine its maximum loan amount as the average total monthly payments for payroll during any consecutive 12-week period between May 1, 2019 and September 15, 2019


QUESTION:
If a seasonal business was dormant or not fully operating as of February 15, 2020, is it still eligible?

Answer:
Yes, in evaluating eligibility, a seasonal business will be considered to have been in operation as of February 15, 2020, if the business was in operation for any 8-week period between May 1, 2019 and September 15, 2019. This approach aligns with guidance previously provided by the Small Business Administration concerning other seasonal businesses under section 1102. See Treasury, Paycheck Protection Program Loans: Frequently Asked Questions (FAQs), FAQ 9 (posted April 6, 2020)


QUESTION:
Are any other SBA rules or guidance for the PPP affected by Treasury’s interim final rule?

Answer:
No. This interim final rule only provides certain employers with an alternative means of calculating the maximum loan amount. All other terms and conditions in the PPP remain unchanged. All PPP applicants, borrowers, and lenders should continue to use existing SBA forms and follow all requirements set forth in the CARES Act and SBA regulations, except for the alternative approach described above for calculating the maximum loan amount.


QUESTION:
What lenders are authorized to offer terms in Treasury’s interim final rule to seasonal employers?

Answer:
All lenders authorized to originate PPP loans may offer the terms under this interim final rule to eligible applicants and borrowers. PPP loans under this interim final rule are eligible for an SBA guarantee to the same extent as PPP loans based on existing PPP rules.

 


Workplace Resources
Guidance on Preparing the Workplace for COVID-19 https://www.osha.gov/
Website with Federal Resources and Assistance https://www.usa.gov/Coronavirus
CDC Interim Guidance for Businesses and Employers to Plan and Respond to COVID-19
www.cdc.gov/coronavirus/2019

 

 


Grant and Initiative
Opportunities
Facebook: Opportunity for up to 30,000 eligible small businesses in more than 30 countries where Facebook operates to receive funding. Facebook is prioritizing 50% of grants to eligible minority-, women- and veteran-owned businesses due to the disproportionate negative impact that COVID-19 will have on these businesses, their employees and the communities that they serve .  https://www.facebook.com/business/boost/ grants ?ref=alias.

To be eligible, businesses must:
o    Have between 2 and 50 employees
o    Have been in business for over a year
o    Have experienced challenges from COVID-19
o    Be in or near a location where Facebook operates Virginia is included in locations

Verizon:  launched  #PayItForwardLIVE , a weekly livestream from big names to pay it forward for small businesses. Viewers can tune in every Tuesday and Thursday at 8PM ET/ 5PM PT on  @ Verizon ’s Twitter , Yahoo, Twitch, and Fios Channel 501. As people support their favorite small businesses with #PayItForwardLIVE, Verizon will commit an additional $10 per use of the hashtag, up to $2.5 million, for a total of up to $5 million in support.

Salesforce Grant: The Grant Program is intended to help support certain small businesses in the United States of America who need assistance due to adverse economic effects of Coronavirus (COVID-19). Information available at: https://www.ureeka.biz/legal/salesforcegrantsterms

Bay Consortium Region Rapid Response COVID-19 Business Support Initiative  –Spotsylvania Economic Development


Additional Loan Programs and Lending Tools

Three Virginia organizations have launched a loan program to support small business sustainability in Wythe and Bland Counties during this challenging time.  The Wytheville-Wythe-Bland Chamber of Commerce, the Joint IDA of Wythe County, and Downtown Wytheville Incorporated have jointly funded a $60,000 loan pool to support small business needs during this time of economic uncertainty. This fund offers businesses loans up to $2,000 that will be repayable over two years at 0% interest. While this won’t likely make or break many businesses, the mission is to help offset expenses while cash flow is down.

Loan applications will be accepted on a rolling basis until funds are exhausted. Go to our website for a loan application.  www.wwbchamber.com

The Federal Reserve has announced that it is establishing a Main Street Lending Program (Program) to support lending to small and medium-sized businesses that were in good financial standing before the onset of the COVID-19 pandemic. The Program will operate through two facilities: the Main Street New Loan Facility (MSNLF) and the Main Street Expanded Loan Facility (MSELF).
  • Structure. To implement the Program, a Reserve Bank will set up a special purpose vehicle (SPV) to purchase 95 percent participations in loans originated by eligible lenders. Lenders will retain 5 percent of the loans. As detailed further in the term sheets, U.S. businesses are eligible for loans if they meet either of the following conditions: (1) the business has 10,000 employees or fewer; or (2) the business had 2019 revenues of $2.5 billion or less. Loans would have a four year maturity, and principal and interest payments on the loans will be deferred for one year. Eligible lenders may originate new loans (under MSNLF) or increase the size of (or “upsize”) existing loans (under MSELF) made to eligible businesses.
  • Operational Status. The Federal Reserve is currently working to create the Program infrastructure and is considering the feedback provided by the public. More information will be posted here as it becomes available regarding program terms and how eligible lenders can sell eligible loan participations to the SPV. Once the Program is operational, small and medium-sized businesses interested in the Program should seek to apply for MSNLF or MSELF loans from an eligible lender.

In case you missed it…
SBA LOGO

Joint Statement by SBA Administrator Jovita Carranza and Treasury Secretary Steven T. Mnuchin on the Resumption of the Paycheck Protection Program

Administrator of the U.S. Small Business Administration Jovita Carranza and U.S. Treasury Secretary Steven T. Mnuchin issued the following statement today on the resumption of the Payroll Protection Program (PPP):

“We are pleased that President Trump has signed into law the Paycheck Protection Program and Health Care Enhancement Act, which provides critical additional funding for American workers and small businesses affected by the coronavirus pandemic. We want to thank Leader McConnell, Leader Schumer, Speaker Pelosi, and Leader McCarthy for working with us on a bipartisan basis to ensure that the Paycheck Protection Program is funded so that small businesses can keep hardworking Americans on the payroll.

“The Small Business Administration will resume accepting PPP loan applications on Monday, April 27 at 10:30 AM EDT from approved lenders on behalf of any eligible borrower. This will ensure that SBA has properly coded the system to account for changes made by the legislation.
“The PPP has supported more than 1.66 million small businesses and protected over 30 million jobs for hardworking Americans. With the additional funds appropriated by Congress, tens of millions of additional workers will benefit from this critical relief.
“We encourage all approved lenders to process loan applications previously submitted by eligible borrowers and disburse funds expeditiously. All eligible borrowers who need these funds should work with an approved lender to apply. Borrowers should carefully review PPP regulations and guidance and the certifications required to obtain a loan.
“The Trump Administration is fully committed to ensuring that America’s workers and small businesses continue to get the resources they need to get through this challenging time.”

 Job Announcements
The SBA is hiring temporary employees to assist with disaster relief efforts during these unprecedented times. The positions include:
Call Center Customer Service Representative
Document Preparation/Legal Review/Loan Closings
Loan Processing/Credit Analysis/Mortgage Underwriting
Program Support
Apply today

Beware of Scams and Fraud Schemes
The Office of Inspector General recognizes that we are facing unprecedented times and is alerting the public about potential fraud schemes related to economic stimulus programs offered by the U.S. Small Business Administration in response to the Novel Coronavirus Pandemic (COVID-19). The Coronavirus Aid, Relief, and Economic Security (CARES) Act, the largest financial assistance bill to date, includes provisions to help small businesses. Fraudsters have already begun targeting small business owners during these economically difficult times.
Be on the lookout for grant fraud, loan fraud, and phishing.
Learn more

Federal Coronavirus Resources

State, local, and federal agencies are working together to maintain the safety, security, and health of the American people. Check out coronavirus.gov for updates from the White House’s Coronavirus (COVID-19) Task Force. Go to cdc.gov for detailed information about COVID-19 from the Centers for Disease Control and Prevention.
Be on the lookout for grant fraud, loan fraud, and phishing.

Virtual Mentoring and Training

Offices around the country may be closed to the Coronavirus pandemic, but SCORE, Small Business Development Centers, Women’s Business Centers, and Veterans Business Outreach Centers and other resource partners are providing free business mentoring and training by phone, email, and video.
Find an SBA resource partner near you

SBA District and Regional Office Webinars on Disaster Assistance

SBA district and regional offices are offering webinars about Economic Injury Disaster Loans.
These webinars explain SBA’s Economic Injury Disaster Loan program and how you can apply for disaster assistance.

haga clic aquí para la versión en español

(Sent April 14, 2020)

Coronavirus (COVID-19) Personal Protective Supplies
URGENT NEED

The Commonwealth of Virginia is still seeking to fill severe shortages of specific infection-control and healthcare supplies. If you have bulk amounts of personal protective equipment in stock, please indicate the type and amounts and whether this is a donation or for purchase using the following link https://virginia.gov/covid19supplies.  All equipment must meet OSHA, NIOSH, FDA, CDC or other appropriate federal standard.

If you have supplies for purchase please advise on the price per quantity and ensure you are registered through eVA, Virginia’s electronic procurement tool. The link to register for eVA is https://eva.virginia.gov/register-now.html.

Also, consider obtaining your small, women, and minority-owned (SWaM) certification by applying using the following link https://certification-app.sbsd.virginia.gov/ instructions on applying can be found by visiting https://www.sbsd.virginia.gov/wp-content/uploads/2019/10/SBSD-New-Application-Portal-Instructions-2019-09-06.pdf.

This announcement is not an offer of a contract but is intended to gather information about companies’ capabilities to donate or sell critical items to Virginia to more readily fulfill urgent needs for hospitals, healthcare facilities, first responders, and other essential government services that require personal protective equipment.

Below is a list of items the Commonwealth is looking for:

  • Cleaner/Sanitizer (16514)
  • Sanitizers (Used to sanitize dishes, counters or any food contact area) (16576)
  • Blood Chemistry and Hematology Reagents and Supplies (For Automatic and Semiautomatic Instruments): Counting Controls, Detergents, etc. (19312)
  • Blood Coagulation Reagents and Controls (For Fibrinogen, Fibrin (Ogen) Split Products, Prothrombin Time, etc.) (19318)
  • Hazardous Environment Clothing (20031)
  • Hospital Wear, Patient (20032)
  • Hospital Wear, Professional (20034)
  • Gloves, Cowhide/Leather (All Types) (20140)
  • Gloves, Neoprene and Rubber (All Types) (20141)
  • Respiratory Therapy Solutions and Sets (27180)
  • Personal Protective Equipment (PPE), (Blood Borne Pathogen Protection), Not Listed Elsewhere (34574)
  • Respiratory Protection Equipment and Parts (Including CPAP Equipment and Parts) (34580)
  • Sanitizer, Liquid (For elimination of Bacteria, Viruses and Fungi caused by contact with Food) (39393)
  • Soap, Surgical Scrub (See 485-85 for Janitorial Type Scrubbing Soap) (43572)
  • Soap, Surgical Scrub, Hand Sanitizer, Alcohol Based, Long Term Killing Activity (43573)
  • Disinfestation Equipment and Supplies (for Ambulances, Hospital Rooms, etc.), Environmentally Certified Products (43659)
  • Soap, Surgical Scrub, Hand Sanitizer, Alcohol Based, Long Term Killing Activity, Environmentally Certified Products (43673)
  • Bandages (All Types), Adhesive Tapes, Dressings, Plaster of Paris, and Surgical Gauze (Including Casts) (47509)
  • Cleaning Equipment and Supplies (For Infectious Body Fluid) (47520)
  • Medical Examination Equipment and Supplies (Not Otherwise Classified) (47555)
  • Oil, Chemical, and Hazardous Material Spill Absorbents, Cleaners, Neutralizers, and Pads (Including Microorganisms, Live; Peat Moss)) (48574)
  • Oil, Chemical, and Hazardous Material Spill Absorbents, Cleaners, Neutralizers, and Pads (Including Microorganisms, Live; Peat Moss)),
  • Environmentally Certified Products (48674)
  • Testing Instruments (Not Otherwise Classified) (49090)
  • Hazardous Materials (Hazmat, Green Material, etc.), (Not Otherwise Classified) (57847)
  • Remediation Services, Environmental (Including Rehabilitation Services Hazardous Waste and Mold Remediation) (92678)
  • Decontamination Services (Incl. Hazardous Material Decontamination) (96127)

haga clic aquí para la versión en español

(Sent April 17, 2020)

“Keep your face always toward the sunshine and shadows will fall behind you” -Walt Whitman

SBSD’s update this week includes information regarding the status of SBA’s programs.
Information is current as of April 17, 2020.

Notice: Effective April 16, 2020, EIDL and PPP funds have been exhausted.
Applications are not being accepted at this time. We encourage you to begin
organizing your necessary financial documents in the event Congress passes the
fourth COVID-19 bill.

 Statement by Secretary Mnuchin and Administrator Carranza on the Paycheck Protection
Program and Economic Injury Disaster Loan Program

On April 15, 2020, U.S. Treasury Secretary Steven T. Mnuchin and U.S. Small Business Administration Administrator Jovita Carranza issued the following statement regarding the Paycheck Protection Program and Economic Injury Disaster Loan Program:

“The SBA has processed more than 14 years’ worth of loans in less than 14 days. The Paycheck Protection Program is saving millions of jobs and helping America’s small businesses make it through this challenging time. The EIDL program is also providing much-needed relief to people and businesses.”

“By law, the SBA will not be able to issue new loan approvals once the programs experience a lapse in appropriations.”

“We urge Congress to appropriate additional funds for the Paycheck Protection Program a critical and overwhelmingly bipartisan program—at which point we will once again be able to process loan applications, issue loan numbers, and protect millions more paychecks.”

“The high demand we have seen underscores the need for hardworking Americans to have access to relief as soon as possible. We want every eligible small business to participate and get the resources they need.”

Please be aware, the Virginia Department of Small Business and Supplier Diversity (SBSD), as well as the Virginia Small Business Financing Authority (VSBFA), is not a part of the U.S. Small Business Administration (SBA) and will not be able to provide status updates on EIDL and PPP loan applications. 

SBSD encourages you to reach to the SBA for assistance regarding your application status at: https://www.sba.gov/, Customer Service: 800-659-2955 –open 24 hours Monday through Friday; Saturday and Sunday 8:00AM to 5:00PM. Email: disastercustomerservice@sba.gov 

Grant Opportunity:

U.S. Chamber of Commerce Launches Nationwide “Save Small Business” Initiative.

To combat the economic destruction threatening the survival of small businesses in every town across America, on April 15, 2020, the U.S. Chamber of Commerce launched the Save Small Business Initiative – a nationwide program to address small businesses’ immediate needs, mitigate closures and job losses, and mobilize support for long-term recovery.

An important aspect of the initiative is the “Save Small Business Fund” – Helping small employers who are struggling during the COVID-19 outbreak. This fund is a grant making initiative offering short term relief for small employers in the United States and its territories. Funded by corporate and philanthropic partners, the Save Small Business Fund is a collective effort to provide $5,000 grants to as many employers as they can.

To qualify for the fund an employer must meet the following criteria:

  • Employ between 3 and 20 people
  • Be located in an economically vulnerable community
  • Have been financially impacted by the COVID-19 pandemic

An employer can determine if they are in an economically vulnerable community by entering their zip code associated with their business (as listed on their W-9) on the Save Small Business website.

A short application will go live on the Save Small Business website on April 20, 2020 at 12 noonPacific Time. The website also allows for employers to sign up for a reminder of when the application portal is open.

To learn more about the program and to sign up visit https://www.savesmallbusiness.com

Urban Financial Services Coalition  www.ufscnet.org

In the News:

Governor Northam Announces $70 Million in New Funding to Expand Access to Child Care during COVID-19 Pandemic

Additional funds will support child care services for essential personnel, prepare emergency child care centers

On April 15, 2020, Governor Ralph Northam today announced an additional $70 million in Child Care and Development Block Grant (CCDBG) funding through the federal CARES Act to further support the provision of child care for essential personnel.

“Many child care centers have had to close their doors due COVID-19, but their services are vital for the critical workers on the front lines of this public health crisis,” said Governor Northam. “I thank our child care providers who work each and every day to ensure our youngest Virginians are receiving quality early childhood care and education, and are going to extraordinary lengths to keep them healthy and safe during these unprecedented and challenging time.”

The closure of K-12 schools impacts nearly 1.2 million Virginia children under the age of 12. In partnership with the Virginia Department of Social Services (VDSS) and the Virginia Department of Education (VDOE), the CCDBG stimulus funding will provide additional avenues to ensure the availability of child care services for essential personnel and cash assistance to child care providers.

“The most important aspect of Virginia’s early care and education system is our dedicated educators, and this past month has made that more evident than ever,” said First Lady Pamela Northam. “That’s why we fought so hard to get this additional funding to them as quickly as possible.”

Across Virginia, approximately 2,672 child care centers—nearly 45 percent—have closed, including nearly 40 percent of centers that serve children through the Child Care Subsidy Program. Combined with family day homes and other child care sites, these closures represent a reduction in capacity of at least 200,000 slots as of the end of March.

The funding will be used to increase the availability of child care services for essential personnel and support child care centers in the following ways:

  • Provide incentive grants to child care providers that are open, from now through the end of June;
  • Eliminate co-payments through June for low-income, working families who receive federal child care subsidy dollars;
  • Prepare schools to act as emergency child care centers, where needed; and
  • Provide additional funding for child care providers that participate in the federal subsidy program, but have had to close. This will help ensure they are ready to welcome children back as soon as this crisis has passed.

“Our essential workers are facing a limited number of child care options as providers struggle to remain operational,” said VDSS Commissioner S. Duke Storen. “These measures are critical to ensuring Virginia can maintain a strong child care system not only during this crisis but beyond.”

Virginia will begin paying current subsidy providers and waiving co-pay for families already receiving federally subsidized child care this week. Updated guidance and answers to frequently asked questions about Virginia’s Child Care Subsidy Program is available here. A comprehensive guide to COVID-19 child care resources in Virginia, including information about how apply for the CCDBG grants, is available here.

Parents who serve in essential industries and are in need of child care services should visit Child Care Aware at VAchildcare.org or call 1-866-KIDS-TLC for an up-to-date list of child care options in their area.

The safety and well-being of Virginia’s children, families, and workers remain a top priority. Child care centers that remain open have been provided additional health and safety guidance by VDSS.

To be eligible, businesses must:
  • Have between 2 and 50 employees
  • Have been in business for over a year
  • Have experienced challenges from COVID-19
  • Be in or near a location where Facebook operates Virginia is included in locations
  • LiSC: Thanks to a $2.5 million investment from Verizon, LiSC is offering grants to help small businesses fill urgent financial gaps until they can resume normal operations or until other more permanent financing becomes available.
  • Verizon: launched #PayItForwardLIVE, a weekly livestream from big names to pay it forward for small businesses. Viewers can tune in every Tuesday and Thursday at 8PM ET/ 5PM PT on @Verizon’s Twitter, Yahoo, Twitch, and Fios Channel 501. As people support their favorite small businesses with #PayItForwardLIVE, Verizon will commit an additional $10 per use of the hashtag, up to $2.5 million, for a total of up to $5 million in support.
How to Help:
If you or your organization are interested in helping the effort to combat the spread of COVID-19, FEMA has established a website (www.fema.gov/coronavirus/how-to-help) with more information. Examples for the private sector include:

* This solicitation requires registration with the System for Award Management (SAM) in order to be considered
for  award, pursuant to applicable regulations and guidelines. Registration information can be found at www.sam.gov.
Registration must be “ACTIVE” at the time of award.

  • If you are a private company that wants to produce a product related to the COVID response – email nbeoc@max.gov.
  • If you are a hospital or healthcare provider in need of medical supplies, please contact your state, local, tribal or territory department of public health and/or emergency management agency.
  • If you are interested in doing business with FEMA and supporting the response to COVID- 19 with your company’s non-medical goods and/or services, please submit your inquiry to the Department of Homeland Security (DHS) Procurement Action Innovative Response Team (PAIR) team at DHSIndustryLiaison@hq.dhs.gov.

The Office of Inspector General recognizes that we are facing unprecedented times and is alerting the public about potential fraud schemes related to economic stimulus programs offered by the U.S. Small Business Administration in response to the Novel Coronavirus Pandemic (COVID-19). The Coronavirus Aid, Relief, and Economic Security (CARES) Act, the largest financial assistance bill to date, includes provisions to help small businesses. Fraudsters have already begun targeting small business owners during these economically difficult times.  Be on the lookout for grant fraud, loan fraud, and phishing.

Scams and Fraud Schemes
Grants
SBA does not initiate contact on either 7a or Disaster loans or grants. If you are proactively contacted by someone claiming to be from the SBA, suspect fraud.
Loans
  • If you are contacted by someone promising to get approval of an SBA loan, but requires any payment up front or offers a high interest bridge loan in the interim, suspect fraud.
  • SBA limits the fees a broker can charge a borrower to 3% for loans $50,000 or less and 2% for loans $50,000 to $1,000,000 with an additional ¼% on amounts over $1,000,000. Any attempt to charge more than these fees is inappropriate.
  • If you have a question about getting a SBA disaster loan, call 800-659-2955 or send an email to disastercustomerservice@sba.gov.
Phishing
  • If you are in the process of applying for an SBA loan and receive email correspondence asking for PII, ensure that the referenced application number is consistent with the actual application number.
  • Look out for phishing attacks/scams utilizing the SBA logo. These may be attempts to obtain your personally identifiable information (PII), to obtain personal banking access, or to install ransomware/malware on your computer.
  • Any email communication from SBA will come from accounts ending with sba.gov.
  • The presence of an SBA logo on a webpage does not guaranty the information is accurate or endorsed by SBA. Please cross-reference any information you receive with information available at www.sba.gov.
Report Fraud
Report any suspected fraud to OIG’s Hotline at 800-767-0385 or online at, https://www.sba.gov/about-sba/oversight-advocacy/office-inspector-general/office-inspector-general-hotline.

 

(Sent April 14, 2020)

INVITATION
Please share to a friend: Registration ends April 18
VIRGINIA ASIAN CHAMBER OF COMMERCE
VIRGINIA ASIAN FOUNDATION 
HOST:
WEBINAR TITLE:
Care Act For the Muslim Business Community
  JOIN THE WEBINAR:
 Monday April 20, 2020
2:00 PM – 3:00 PM Eastern time
Register at:
Seats are limited!
 The Coronavirus (COVID-19) pandemic has impacted thousands of small businesses owned and operated by Minority/Asian American businesses.  Small size Muslim American owned businesses, like most other underserved minority-owned businesses, are still unaware of all the available federal relief programs that Congress has passed to help them during this crisis.
In partnership with the U.S Small Business Administration, the Muslim community, and private community partners, VACC will bring to the Muslim businesses information regarding the CARE ACT. Event is conducted in English. Language interpretation is available online.
Speaker:
SBA District Director Carl Knoblock
This webinar will be conducted in English with on – site interpretation if needed.
HOW DO I PARICIPATE?
After you register at:
VACC will send each registrant the Webinar Confirmation details and
other pertinent event details in order for you to register in order to join the webinar.
*************
ZOOM EVENT REGISTRATION INSTRUCTIONS
  VACC will send all registrants a Zoom link to join the webinar.
NOTES: Upon registering with us to let us know your interest in participating in our event, you will receive a Zoom link to enter the webinar. Upon receiving the link, you must register immediately as if even you have registered to eventbrite but if you do not click the Zoom link we send you, you are programmatically not registered. So please register immediately upon receiving our Zoom link.
 Question about the webinar? Contact us at: E: aabac@aabac.org
Visit us: www.aabac.org

haga clic aquí para la versión en español

(Sent April 13, 2020)

SBSD’s update this week includes new information available for grants and small business tax provisions. SBA programs are detailed and a list of Frequently Asked Questions have been compiled. Information is current as of April 13, 2020

Congress Passes the Coronavirus Aid, Relief
and Economic Security Act (CARES):

Congress has now passed, and the President has signed, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which is a $2 trillion relief bill. The 800-plus page document contains thousands of provisions covering virtually every part of the American economy. The following is an overview of the CARES Act.

CARES ACT

The Coronavirus Aid, Relief and Economic Security Act provides for small businesses. The roughly $2 trillion coronavirus response bill is intended to speed relief across the American economy. This is the third aid package from Congress and is meant to keep businesses and individuals afloat during an unprecedented freeze on the majority of American life.

The main features for small businesses are emergency grants and a forgivable loan program for companies with 500 or fewer employees. There are also changes to rules for expenses and deductions meant to make it easier for companies to keep employees on the payroll and stay open in the near-term.

Emergency grants: The bill provides $10 billion for grants of up to $10,000 to provide emergency funds for small businesses to cover immediate operating costs. The grants are available under Economic Injury Grants, in conjunction with the Economic Injury Disaster Loan Program. These programs are detailed below in Economic Injury Disaster Loans (EIDL) & Emergency Economic Injury Grants.

Forgivable loans: There is $350 billion allocated for the Small Business Administration to provide loans of up to $10 million per business. Any portion of that loan used to maintain payroll, keep workers on the books or pay for rent, mortgage and existing debt could be forgiven, provided workers stay employed through the end of June.

Relief for existing loans: There is $17 billion to cover six months of payments for small businesses already using SBA loans.

To determine if your business meets SBA’s small business size standards, visit https://www.sba.gov/size-standards/ . You will need the 6-digit North American Industry Classification Code for your business and your business’s 3-year average annual revenue.

 

The updated programs include:

Paycheck Protection Program (PPP) Loans

The program provides cash-flow assistance through 100 percent federally guaranteed loans to employers who maintain their payroll during this emergency. If employers maintain their payroll, the loans will be forgiven, which would help workers remain employed, as well as help affected small businesses and our economy snap-back quicker after the crisis. PPP has a host of attractive features, such as forgiveness of up to 8 weeks of payroll based on employee retention and salary levels, no SBA fees, and at least six months of deferral with maximum deferrals of up to a year. Small businesses and other eligible entities will be able to apply if they were harmed by COVID-19 between February 15, 2020 and June 30, 2020. This program is retroactive to February 15, 2020, in order to help bring workers who may have already been laid off back onto payrolls. Loans are available through June 30, 2020.

 

PPP Frequently Asked Questions

QUESTION: What types of businesses and entities are eligible for a PPP loan?
Answer:
  • Businesses and entities must have been in operation on February 15, 2020.
  • Small business concerns, as well as any business concern, a 501(c) (3) nonprofit organization, a 501(c) (19) veterans organization, or Tribal business concern described in section 31(b)(2)(C) that has fewer than 500 employees, or the applicable size standard in number of employees for the North American Industry Classification System (NAICS) industry as provided by SBA, if higher.
  • Individuals who operate a sole proprietorship or as an independent contractor and eligible self-employed individuals.
  • Any business concern that employs not more than 500 employees per physical location of the business concern and that is assigned a NAICS code beginning with 72, for which the affiliation rules are waived.
  • Affiliation rules are also waived for any business concern operating as a franchise that is assigned a franchise identifier code by the Administration, and company that receives funding through a Small Business Investment Company.
QUESTION: What types of non-profits are eligible?
Answer:
  • In general, 501(c)(3) and 501(c)(19) non-profits with 500 employees or fewer as most non-profit SBA size standards are based on revenue, not employee number.
QUESTION: What are affiliation rules?
Answer:
  • Affiliation rules become important when SBA is deciding whether a business’s affiliations preclude them from being considered “small.” Generally, affiliation exists when one business controls or has the power to control another or when a third party (or parties) controls or has the power to control both businesses.
QUESTION: How is the loan size determined?
Answer:
  • Depending on your business’s situation, the loan size will be calculated in different ways (see below). The maximum loan size is always $10 million
  • If you were in business February 15, 2019 – June 30, 2019: Your max loan is equal to 250 percent of your average monthly payroll costs. If your business is a seasonal employer, the max loan is equal to 250 percent of your average monthly payroll costs from February 15, 2019 through June 30, 2019; you can also opt to choose March 1, 2019 as your time period start date.
  • If you were not in business between February 15, 2019 – June 30, 2019: Your max loan is equal to 250 percent of your average monthly payroll costs between January 1, 2020 and February 29, 2020.
  • If you took out an Economic Injury Disaster Loan (EIDL) between February 15, 2020 and June 30, 2020 and you want to refinance that loan into a PPP loan, you would add the outstanding loan amount to the payroll sum. A calculator link is provided below
  • https://www.nav.com/cares-act-sba-loan-calculator/
QUESTION: What are the loan term, interest rate, and fees?
Answer:
  • For any amounts not forgiven, the maximum term is 10 years, the maximum interest rate is 4 percent, zero loan fees, zero prepayment fee (SBA will establish application fees caps for lenders that charge).
QUESTION: What costs are eligible for payroll?
Answer:
  • Compensation (salary, wage, commission, or similar compensation, payment of cash tip or equivalent)
  • Payment for vacation, parental, family, medical, or sick leave
  • Allowance for dismissal or separation
  • Payment required for the provisions of group health care benefits, including insurance premiums
  • Payment of any retirement benefit
  • Payment of State or local tax assessed on the compensation of employees
QUESTION: What costs are not eligible for payroll?
Answer:
  • Employee/owner compensation over $100,000
  • Taxes imposed or withheld under chapters 21, 22, and 24 of the IRS code
  • Compensation of employees whose principal place of residence is outside of the U.S.
  • Qualified sick and family leave for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act
QUESTION: What are allowable uses of loan proceeds?
Answer:
  • Payroll costs (as noted above)
  • Costs related to the continuation of group health care benefits during periods of paid sick, medical, or family leave, and insurance premiums
  • Employee salaries, commissions, or similar compensations (see exclusions above)
  • Payments of interest on any mortgage obligation (which shall not include any prepayment of or payment of principal on a mortgage obligation)
  • Rent (including rent under a lease agreement)
  • Utilities
  • Interest on any other debt obligations that were incurred before the covered period
QUESTION: How is the forgiveness amount calculated?
Answer:
  • Forgiveness on a covered loan is equal to the sum of the following payroll costs incurred during the covered 8 week period compared to the previous year or time period, proportionate to maintaining employees and wages (excluding compensation over $100,000)
  • Payroll costs plus any payment of interest on any covered mortgage obligation (not including any prepayment or payment of principal on a covered mortgage obligation) plus any payment on any covered rent obligation plus and any covered utility payment.
QUESTION: How do I get forgiveness on my PPP loan?
Answer:
You must apply through your lender for forgiveness on your loan. In this application, you must include:
  • Documentation verifying the number of employees on payroll and pay rates, including IRS payroll tax filings and State income, payroll and unemployment insurance filings.
  • Documentation verifying payments on covered mortgage obligations, lease obligations, and utilities.
  • Certification from a representative of your business or organization that is authorized to certify that the documentation provided is true and that the amount that is being forgiven was used in accordance with the program’s guidelines for use.
QUESTION: What happens after the forgiveness period?
Answer:
  • Any loan amounts not forgiven are carried forward as an ongoing loan with max terms of 10 years, at a maximum interest rate of 4%. Principal and interest will continue to be deferred, for a total of 6 months to a year after disbursement of the loan. The clock does not start again.
QUESTION: Can I get more than one PPP loan?
Answer:
  • No, an entity is limited to one PPP loan. Each loan will be registered under a Taxpayer Identification Number at SBA to prevent multiple loans to the same entity.
QUESTION: Where should I go to get a PPP loan from?
Answer:
  • All current SBA 7(a) lenders are eligible lenders for PPP. The Department of Treasury will also be in charge of authorizing new lenders, including non-bank lenders, to help meet the needs of small business owners.
QUESTION: How does the PPP loan coordinate with SBA’s existing loans?
Answer:
  • Borrowers may apply for PPP loans and other SBA financial assistance, including Economic Injury Disaster Loans (EIDLs), 7(a) loans, 504 loans, and microloans, and also receive investment capital from Small Business Investment Corporations (SBICs). However, you cannot use your PPP loan for the same purpose as your other SBA loan(s). For example, if you use your PPP to cover payroll for the 8-week covered period, you cannot use a different SBA loan product for payroll for those same costs in that period, although you could use it for payroll not during that period or for different workers.
QUESTION: How does the PPP loan work with the temporary Emergency Economic Injury Grants and the Small Business Debt Relief program?
Answer:
  • Emergency Economic Injury Grant and Economic Injury Disaster Loan (EIDL) recipients and those who receive loan payment relief through the Small Business Debt Relief Program may apply for and take out a PPP loan as long as there is no duplication in the uses of funds.
Economic Injury Disaster Loans (EIDL) & Emergency Economic Injury Grants
These grants provide an emergency advance of up to $10,000 to small businesses and private non-profits harmed by COVID-19 within three days of applying for an SBA Economic Injury Disaster Loan (EIDL). To access the advance, you first apply for an EIDL and then request the advance. The advance does not need to be repaid under any circumstance, and may be used to keep employees on payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments.
EIDL Frequently Asked Questions
QUESTION: What is an EIDL and what is it used for?
Answer:
  • EIDLs are lower interest loans of up to $2 million, with principal and interest deferment at the Administrator’s discretion, that are available to pay for expenses that could have been met had the disaster not occurred, including payroll and other operating expenses.
QUESTION: Who is eligible for an EIDL?
Answer:
Those eligible are the following with 500 or fewer employees:
  • Sole proprietorships, with or without employees
  • Independent contractors
  • Cooperatives and employee owned businesses
  • Tribal small businesses

Small business concerns and small agricultural cooperatives that meet the applicable size standard for SBA are also eligible, as well as most private non-profits of any size.

QUESTION: My private non-profit is not a 501(c)(3). Is it still eligible for an EIDL and a grant?
Answer:
  • Yes, if you are a private non-profit with an effective ruling letter from the IRS, granting tax exemption under sections 501(c), (d), or (e) of the Internal Revenue Code of 1954, or if you can provide satisfactory evidence from the State that the non-revenue producing organization or entity is a non-profit one organized or doing business under State law.
QUESTION: How long are Emergency Economic Injury Grants available?
Answer:
  • January 31, 2020 – December 31, 2020. The grants are backdated to January 31, 2020 to allow those who have already applied for EIDLs to be eligible to also receive a grant.
QUESTION: If I get an EIDL and/or an Emergency Economic Injury Grant, can I get a PPP loan?
Answer:
  • Whether you’ve already received an EIDL unrelated to COVID-19 or you receive a COVID-19 related EIDL and/or Emergency Grant between January 31, 2020 and June 30, 2020, you may also apply for a PPP loan. If you ultimately receive a PPP loan or refinance an EIDL into a PPP loan, any advance amount received under the Emergency Economic Injury Grant Program would be subtracted from the amount forgiven in the PPP. However, you cannot use your EIDL for the same purpose as your PPP loan. For example, if you use your EIDL to cover payroll for certain workers in April, you cannot use PPP for payroll for those same workers in April, although you could use it for payroll in March or for different workers in April.

 

Participation of Faith-Based Organizations in the Paycheck Protection Program (PPP)
and the Economic Injury Disaster Loan Program (EIDL)
Frequently Asked Questions
QUESTION: Are faith-based organizations, including houses of worship, eligible to receive SBA loans under the PPP and EIDL programs?
Answer:
  • Yes, and SBA additionally clarifies that faith-based organizations are eligible to receive SBA loans regardless of whether they provide secular social services. That is, no otherwise eligible organization will be disqualified from receiving a loan because of the religious nature, religious identity, or religious speech of the organization. The requirements in certain SBA regulations—13 C.F.R. §§ 120.110(k) and 123.301(g)—impermissibly exclude some religious entities. Because those regulations bar the participation of a class of potential recipients based solely on their religious status, SBA will decline to enforce these subsections and will propose amendments to conform those regulations to the Constitution. Although 13 C.F.R. § 120.110(a) states that nonprofit entities are ineligible for SBA business loans (which includes the PPP program), the CARES Act explicitly makes nonprofit entities eligible for the PPP program and it does so without regard to whether nonprofit entities provide secular social services.
QUESTION: Are there any limitations on how faith-based organizations can use the PPP and EIDL loan money they receive?
Answer:
  • Only the same limitations that apply to all other recipients of these loans (such as that loan forgiveness will cover non-payroll costs only to a maximum of 25% of the total loan to a recipient). The PPP and EIDL loan programs are neutral, generally applicable loan programs that provide support for nonprofit organizations without regard to whether they are religious or secular. The CARES Act has provided those program funds as part of the efforts to respond to the economic dislocation threatened by the COVID-19 public health emergency. Under these circumstances, the Establishment Clause does not place any additional restrictions on how faith-based organizations may use the loan proceeds received through either the PPP or the EIDL loan program. See, e.g., Religious Restrictions on Capital Financing for Historically Black Colleges and Universities, 43 Op. O.L.C. __, *7–15 (Aug. 15, 2019); Authority of FEMA to Provide Disaster Assistance to Seattle Hebrew Academy, 26 Op. O.L.C. 114, 122–32 (2002). In addition, the CARES Act does not impose unique burdens or limitations on faith-based organizations. In particular, loans under the program can be used to pay the salaries of ministers and other staff engaged in the religious mission of institutions.
QUESTION: How will churches qualify if they have not been informed of tax-exempt status by the IRS? Do organizations have to request and receive tax exempt status or just meet the requirements of 501(c)(3) status to be eligible?
Answer:
  • Churches (including temples, mosques, synagogues, and other houses of worship), integrated auxiliaries of churches, and conventions or associations of churches qualify for PPP and EIDL loans as long as they meet the requirements of Section 501(c)(3) of the Internal Revenue Code, and all other PPP and EIDL requirements. Such organizations are not required to apply to the IRS to receive tax-exempt status. See 26 U.S.C. § 508(c)(1)(A).
QUESTION: What legal requirements will be imposed on my organization as a result of our receipt of this Federal financial assistance? Will those requirements cease to apply when the loan is either repaid in full or forgiven?
Answer:
  • Receipt of a loan through any SBA program constitutes Federal financial assistance and carries with it the application of certain nondiscrimination obligations. Any legal obligations that you incur through your receipt of this loan are not permanent, and once the loan is paid or forgiven, those nondiscrimination obligations will no longer apply.
  • Consistent with certain federal nondiscrimination laws, SBA regulations provide that the recipient may not discriminate on the basis of race, color, religion, sex, handicap, age, or national origin with regard to goods, services, or accommodations offered. 13 C.F.R. § 113.3(a). But SBA regulations also make clear that these nondiscrimination requirements do not limit a faith-based entity’s autonomy with respect to membership or employment decisions connected to its religious exercise. 13 CFR § 113.3-1(h). SBA recognizes the various protections for religious freedom enshrined in the Constitution and federal law that are not altered or waived by receipt of Federal financial assistance. SBA therefore clarifies that its regulations apply with respect to goods, services, or accommodations offered generally to the public by recipients of these loans, but not to a faith-based organization’s ministry activities within its own faith community. For example, SBA’s regulations will require a faith-based organization that operates a restaurant or thrift store open to the public to serve the public without regard to the protected traits listed above. But SBA’s regulations do not apply to limit a faith-based organization’s ability to distribute food or clothing exclusively to its own members or co-religionists. Indeed, SBA will not apply its nondiscrimination regulations in a way that imposes substantial burdens on the religious exercise of faith-based loan recipients, such as by applying those regulations to the performance of church ordinances, sacraments, or religious practices, unless such application is the least restrictive means of furthering a compelling governmental interest. Congress enacted the CARES Act to afford swift and sweeping stopgap relief to Americans who might otherwise lose their jobs or businesses because of the economic hardships wrought by the response to the COVID-19 public health emergency, and SBA has a compelling interest in fulfilling that mandate to provide assistance broadly.

 

Small Business Federal Tax Provisions
Employee Retention Credit for Employers Subject to Closure or Experiencing Economic Hardship
This provision would provide a refundable payroll tax credit for 50 percent of wages paid by eligible employers to certain employees during the COVID-19 crisis. The credit is available to employers, including non-profits, whose operations have been fully or partially suspended as a result of a government order limiting commerce, travel or group meetings. The credit is also provided to employers who have experienced a greater than 50 percent reduction in quarterly receipts, measured on a year-over-year basis.
Wages of employees who are furloughed or face reduced hours as a result of their employer’s closure or economic hardship are eligible for the credit. For employers with 100 or fewer full-time employees, all employee wages are eligible, regardless of whether an employee is furloughed. The credit is provided for wages and compensation, including health benefits, and is provided for the first $10,000 in wages and compensation paid by the employer to an eligible employee. Wages do not include those taken into account for purposes of the payroll credits for required paid sick leave or required paid family leave, nor for wages taken into account for the employer credit for paid family and medical leave (IRC sec. 45S).
• The credit is not available to employers receiving assistance through the Paycheck Protection Program. The credit is provided through December 31, 2020.
Delay of Payment of Employer Payroll Taxes
This provision would allow taxpayers to defer paying the employer portion of certain payroll taxes through the end of 2020, with all 2020 deferred amounts due in two equal installments, one at the end of 2021, the other at the end of 2022. Payroll taxes that can be deferred include the employer portion of FICA taxes, the employer and employee representative portion of Railroad Retirement taxes (that are attributable to the employer FICA rate), and half of SECA tax liability.
• Deferral is not provided to employers receiving assistance through the Paycheck Protection Program.
Charitable Grant Opportunities:
  • JP Morgan Chase: $50 million to address the immediate and long-term impact of the coronavirus, including funds for health care, food, and other humanitarian relief, plus assistance for small businesses and others hurt by the crisis. The funds will flow through the corporation’s foundation.
  • Facebook: Opportunity for up to 30,000 eligible small businesses in more than 30 countries where Facebook operates to receive funding. Facebook is prioritizing 50% of grants to eligible minority-, women- and veteran-owned businesses due to the disproportionate negative impact that COVID-19 will have on these businesses, their employees and the communities that they serve. https://www.facebook.com/business/boost/grants?ref=alias.
To be eligible, businesses must:
  • Have between 2 and 50 employees
  • Have been in business for over a year
  • Have experienced challenges from COVID-19
  • Be in or near a location where Facebook operates Virginia is included in locations
  • LiSC: Thanks to a $2.5 million investment from Verizon, LiSC is offering grants to help small businesses fill urgent financial gaps until they can resume normal operations or until other more permanent financing becomes available.
  • Verizon: launched #PayItForwardLIVE, a weekly livestream from big names to pay it forward for small businesses. Viewers can tune in every Tuesday and Thursday at 8PM ET/ 5PM PT on @Verizon’s Twitter, Yahoo, Twitch, and Fios Channel 501. As people support their favorite small businesses with #PayItForwardLIVE, Verizon will commit an additional $10 per use of the hashtag, up to $2.5 million, for a total of up to $5 million in support.
How to Help:
If you or your organization are interested in helping the effort to combat the spread of COVID-19, FEMA has established a website (www.fema.gov/coronavirus/how-to-help) with more information. Examples for the private sector include:

* This solicitation requires registration with the System for Award Management (SAM) in order to be considered
for  award, pursuant to applicable regulations and guidelines. Registration information can be found at www.sam.gov.
Registration must be “ACTIVE” at the time of award.

  • If you are a private company that wants to produce a product related to the COVID response – email nbeoc@max.gov.
  • If you are a hospital or healthcare provider in need of medical supplies, please contact your state, local, tribal or territory department of public health and/or emergency management agency.
  • If you are interested in doing business with FEMA and supporting the response to COVID- 19 with your company’s non-medical goods and/or services, please submit your inquiry to the Department of Homeland Security (DHS) Procurement Action Innovative Response Team (PAIR) team at DHSIndustryLiaison@hq.dhs.gov.

The Office of Inspector General recognizes that we are facing unprecedented times and is alerting the public about potential fraud schemes related to economic stimulus programs offered by the U.S. Small Business Administration in response to the Novel Coronavirus Pandemic (COVID-19). The Coronavirus Aid, Relief, and Economic Security (CARES) Act, the largest financial assistance bill to date, includes provisions to help small businesses. Fraudsters have already begun targeting small business owners during these economically difficult times.  Be on the lookout for grant fraud, loan fraud, and phishing.

Scams and Fraud Schemes
Grants
SBA does not initiate contact on either 7a or Disaster loans or grants. If you are proactively contacted by someone claiming to be from the SBA, suspect fraud.
Loans
  • If you are contacted by someone promising to get approval of an SBA loan, but requires any payment up front or offers a high interest bridge loan in the interim, suspect fraud.
  • SBA limits the fees a broker can charge a borrower to 3% for loans $50,000 or less and 2% for loans $50,000 to $1,000,000 with an additional ¼% on amounts over $1,000,000. Any attempt to charge more than these fees is inappropriate.
  • If you have a question about getting a SBA disaster loan, call 800-659-2955 or send an email to disastercustomerservice@sba.gov.
Phishing
  • If you are in the process of applying for an SBA loan and receive email correspondence asking for PII, ensure that the referenced application number is consistent with the actual application number.
  • Look out for phishing attacks/scams utilizing the SBA logo. These may be attempts to obtain your personally identifiable information (PII), to obtain personal banking access, or to install ransomware/malware on your computer.
  • Any email communication from SBA will come from accounts ending with sba.gov.
  • The presence of an SBA logo on a webpage does not guaranty the information is accurate or endorsed by SBA. Please cross-reference any information you receive with information available at www.sba.gov.
Report Fraud
Report any suspected fraud to OIG’s Hotline at 800-767-0385 or online at, https://www.sba.gov/about-sba/oversight-advocacy/office-inspector-general/office-inspector-general-hotline.

 

(Sent April 8, 2020)

 

 

The Stimulus Package – Continuing the Conversation

Thursday, April 9, 2020
3 — 4:30 p.m. (EDT)

 

NMSDC invites you to continue the conversation about the Coronavirus Aid, Relief and Economic Security (CARES) Act and what this federal stimulus package can do for your business.

A special guest from our nation’s capital will provide additional information, details about the package, how they are addressing some of the challenges that have occurred during its launch and answer your questions. Additionally, our panel will share valuable resources about how to access programs to help your business stay afloat during this crisis.

Get first-hand information about:

  • The key elements of the package
  • Who and what qualifies for emergency coverage
  • The scale and scope of the coverage
  • The parameters and limits of the coverage
  • The application process
  • When you might expect to receive assistance

Join us in the virtual room from 3 — 4:30 p.m. (EDT) on Thursday, April 9, to be a part of this urgent discussion.

Adrienne C. Trimble
Host
President & CEO
NMSDC

Clifford A. Bailey 
Moderator
Chair, NMSDC National Minority Business Enterprise
Input Committee (NMBEIC)
President & CEO
TechSoft Systems, Inc

Meet You in the Virtual Room!

Registration closes at 11 a.m. (EDT) on Thursday, April 9
The live web cast is limited
A live stream will also be available on YouTube

haga clic aquí para la versión en español

(Sent April 3, 2020)

SBA Paycheck Protection Program

Loan Information
  • The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.
  • 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.
  • To locate an SBA Lender near you, please visit: https://www.sba.gov/paycheckprotection/find
  • 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.
  • Lenders may begin processing loan applications as soon as April 3, 2020. The Paycheck Protection Program will be available through June 30, 2020.
Who Can Apply
  • 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 coronavirus/COVID-19.
  • Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries.
  • Small businesses in the hospitality and food industry with more than one location could also be eligible if their individual locations employ less than 500 workers.
Loan Details and Forgiveness
  • The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
  • Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
  • This loan has a maturity of 2 years and an interest rate of 1%.
  • If you wish to begin preparing your application, you can download a copy of the PPP borrower application form to see the information that will be requested from you when you apply with a lender.
Documents Needed to Apply
In addition to your completed SBA Paycheck Protection Program application, you should have the following documents and information available and ready to review with your banker:
  • Articles of incorporation for each borrowing entity
  • By-laws or operating agreement for each borrowing entity
  • Copies of each owner’s driver’s license
  • Payroll expense verification documents
  • IRS forms 940 and 941
  • Payroll summary report with corresponding bank statements
  • Breakdown of payroll benefits (vacation, allowance for dismissal, group healthcare benefits, retirement benefits, etc.)
  • 1099s (if you are an independent contractor)
  • Certification that all employees live within the United States
  • If any do not, provide a detailed list with corresponding salaries
  • Trailing twelve-month profit and loss statement (as of the date of application) for all applicants
  • Most recent mortgage or rent statement
  • Most recent utility bills

 

Other Assistance
  • In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are currently eligible to apply for disaster assistance.
  • Enhanced Debt Relief is also available in SBA’s other business loan programs to help small businesses overcome the challenges created by this health crisis.
  • For information on additional Lending options, please click here.
  • SBA provides local assistance via 68 district offices and a nationwide network of resource partners. To find resources near you, please click here

Economic Injury Disaster Loan Emergency Advance

Overview
  • 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.
Eligibility
  • The SBA’s Economic Injury Disaster Loan provides vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing as a result of the COVID-19 pandemic.
  • 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.
  • Funds will be made available within days of a successful application, and this advance on the loan will not have to be repaid. Lenders may begin processing loan applications as soon as April 3, 2020.
To apply for a COVID-19 Economic Injury Disaster Loan, click here.

SBA Express Bridge Loans

Enables small businesses who currently have a business relationship with an SBA Express Lender
to access up to $25,000 quickly.
  • Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly.
  • These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loans or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan.
  • If a small business has an urgent need for cash while waiting for decision and disbursement on an Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan.
       Terms
  • Up to $25,000
  • Fast turnaround
  • Will be repaid in full or in part by proceeds from the EIDL loan.

 

SBA Debt Relief

The SBA is providing a financial reprieve to small businesses during the COVID-19 pandemic.
Overview
  • As part of SBA’s debt relief efforts,
  • The SBA will automatically pay the principal, interest, and fees of current 7(a) loans for a period of six months.
  • The SBA will also automatically pay the principal, interest, and fees of new 7(a) loans issued prior to September 27, 2020.
  • Explore additional SBA loan products here. 

 

The National Federation of Independent Business (NFIB)
Side by Side Comparison for the EIDL and PPP Loan Programs
Click Below for Comparison
https://files.constantcontact.com/dc8df9e8701/6e8f7748-500b-4f57-9075-27c302e5a435.pdf

haga clic aquí para la versión en español

(Sent April 1, 2020)

Stay at Home Order
On March 30, 2020, Governor Ralph Northam issued a statewide Stay at Home order to protect the health and safety of Virginians and mitigate the spread of the novel coronavirus, or COVID-19.

The executive order takes effect immediately and will remain in place until June 10, 2020, unless amended or rescinded by subsequent executive order. A press release about the Governor’s Executive Order can be found here

 

Congress Passes the Coronavirus Aid, Relief and Economic Security Act (CARES):

Congress has now passed, and the President has signed, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which is a $2 trillion relief bill. The 800-plus page document contains thousands of provisions covering virtually every part of the American economy. The following is an overview of the CARES Act.

Cash to Americans through Direct Payments

  • Cash payments to qualified individuals of up to $1,200 ($2,400 married), with an additional $500 cash payment available per child. Trusts and estates do not qualify for the rebate.
  • Full payment is available for Americans making up to $75,000 (individuals) and $150,000 (married). This applies even for those who have no income, as well as those whose income comes entirely from non-taxable means-tested benefit programs, such as SSI benefits.
  • The value decreases and then phases out completely for those making over the full payment income cap. Rebate amount is reduced by $5 for each $100 that a taxpayer’s income exceeds the phase-out threshold. Complete phase-out occurs with incomes exceeding $99,000 for single filers and $146,500 for head of household filers with one child, and $198,000 for joint filers with no children.
  • For taxpayers who have yet to file their 2019 income tax returns, their 2018 returns will be used to determined their eligibility for the rebate. If no 2018 return has been filed, eligibility may be determined based upon their 2019 Social Security Benefit Statement or Social Security Equivalent Benefit Statement.
  • The Internal Revenue Service will attempt to use the most recent banking information on file for taxpayers to distribute funds electronically. Should that fail, they will issue paper checks.

 

Cash to Americans through Retirement Provisions

  • For 2020, those that are subject to mandatory minimum distributions from their qualified retirement accounts would be able to keep their funds invested without penalty.
  • Individuals are allowed in 2020 to take distributions from their qualified retirement accounts, such as 401(k) plans and IRAs, of up to $100,000 without having to pay the 10% penalty on early distributions if the distribution is related to adverse financial consequences as a result of contracting COVID-19, or related factors.

Assistance with Student Loan Deferrals

  • The CARES Act defers student loan payments, principal and interest, without penalty to the borrower for all federally owned loans through September 30, 2020. It also provides federal loan protections and Pell grant protections for students who ceased enrollment as a result of COVID-19.
  • CARES provides tax relief to encourage employers to implement student loan repayment programs. This excludes up to $5,250 in qualifying student loan repayments paid by the employer on behalf of the employee from income for income tax purposes.

Unemployment Insurance

  • Creates a temporary Pandemic Unemployment Assistance program through December 31, 2020. This program will provide payment to those not traditionally eligible for unemployment benefits (self-employed, independent contractors, those with limited work history, and others).
  • Provides payment to states to reimburse nonprofit organizations, government agencies, and Indian tribes for half of the costs they incur through December 31, 2020 to pay for unemployment benefits.
  • Includes an additional $600 per week payment, on top of state benefit levels, to each recipient of unemployment insurance or Pandemic Unemployment Assistance for up to four months, through July 31. (Laid off workers currently qualify for up to 26 weeks of unemployment insurance. Benefit levels vary by state with most replacing about half of an individual’s wages during that time.)
  • Provides an additional 13 weeks of federally-funded unemployment insurance benefits beyond the normal 26 weeks through December 31, 2020 to help those who remain unemployed after state unemployment benefits are no longer available. The amount provided would be the same as the regular benefit paid by the state.

 

Small Businesses Assistance Provided by the Coronavirus Aid, Relief and Economic Security Act (CARES):

The Paycheck Protection Program, one of the largest sections of the CARES Act, is – for small businesses – one of the most important provisions in the new stimulus bill. This new program sets aside $350 billion in government-backed loans. The program is modeled after the existing SBA 7(a) loan guarantee program provided by the U.S. Small Business Administration (SBA). Currently, the SBA 7(a) program guarantees small business loans that are provided by a network of more than 800 lenders across the U.S.

The Paycheck Protection Program creates a type of emergency loan that can be forgiven when used to maintain payroll through June. The program expands the existing network of lenders so that more banks, credit unions and lenders can issue those loans. The Paycheck Protection Program:

  • Incentivizes small businesses to avoid laying off workers and to rehire workers that were previously laid-off as a result of COVID-19 disruptions.
  • Offers loans for small businesses with fewer than 500 employees, select types of businesses with fewer than 1,500 employees and for 501(c)(3) non-profits with fewer than 500 workers, as well as some 501(c)(19) veteran organizations.
  • Self-employed, sole proprietors, and freelance and gig economy workers are also eligible to apply.
  • Businesses must apply for the program through an approved lender.
  • Businesses may qualify even without a personal guarantee or collateral, so long as they were operational on February 15, 2020.
  • The maximum loan amount under the Paycheck Protection Act is $10 million, with an interest rate no higher than 4%.
  • No personal guarantees or collateral are required for the loan.
  • Lenders in the program are expected to defer fees, principal and interest for no less than six months and no more than one year.
  • Some or all of these loans may be forgiven. Generally speaking, as long as the small business employer continues paying employees at normal levels during the eight weeks following the origination of the loan, then the amount spent on payroll costs (excluding costs for any compensation above $100,000 annually), mortgage interest, rent payments and utility payments can be combined and that portion of the loan will be forgiven.
  • NOTE:If a business owner uses an SBA EIDL Disaster Relief loan for payroll, they will not be able to use the “Payroll Protection Program” forgivable loan for that same purpose.  

For more information on the Paycheck Protection Program, please visit:
https://www.sba.gov/funding-programs/loans/paycheck-protection-program

 

Small Business Disaster Loans from the U.S. Small Business Administration

On March 20, 2020, the U.S. Small Business Administration (SBA) approved an SBA disaster declaration for the Commonwealth of Virginia. The disaster declaration allows SBA to provide assistance to Virginia businesses and nonprofits negatively impacted by COVID-19.

SBA’s Economic Injury Disaster Loan (EIDL) program can provide vital economic support to small businesses by helping to overcome the temporary loss of revenue they are experiencing due to COVID-19.

SBA’s EIDL program offers:

  • Direct loans up to $2 million to businesses and nonprofits without access to available credit elsewhere.
  • The interest rate on EIDL loans to businesses is 3.75%.  The interest rate for nonprofits is 2.75%.
  • The loans may be used to pay fixed debts, payroll, accounts payable and other business expenses. SBA offers loans with loan terms of up to 30 years in order to keep payments affordable.
  • Loan terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.
  • The Application Filing Deadline: December 21, 2020.

 

Recent Changes to SBA’s Economic Injury Disaster Loan Program:
The SBA’s EIDL program was extended to all small businesses affected by COVID-19, but the Coronavirus Aid, Relief and Economic Security Act (CARES) Act expands this program and makes it easier to apply.

Recent changes to the EIDL program include:

  • EIDL loans are also now available to Tribal businesses, cooperatives and ESOPs with fewer than 50 employees.
  • EIDL loans are also now available to all non-profit organizations, including 501(c)(6)s, and to businesses operating as sole proprietors or independent contractors.
  • EIDL loans smaller than $200,000 can now be approved without a personal guaranty.
  • EIDL loans can now be approved by the SBA solely on the basis of an applicant’s credit score.

 

Virginia businesses and nonprofits impacted by COVID-19 can make applications to the SBA
for the Economic Injury Disaster Loan program (EIDL) at https://covid19relief.sba.gov/#/

For more information on the SBA’s Economic Injury Disaster Loan program
please visit: disasterloan.sba.gov/ela/

For information on SBA’s disaster declaration in Virginia please visit:
SBA Offers Disaster Assistance to Virginia Small Businesses

 

 

Paid Sick Time and Family Leave Required by the Families First Coronavirus Response Act

The Families First Coronavirus Response Act (FFCRA) requires certain employers to provide their employees with paid sick leave and expanded family and medical leave for specified reasons related to COVID-19. These provisions will apply from April 1, 2020 through December 31, 2020.

Paid Leave Entitlements

Generally, employers covered under the Act must provide employees:

  • 100% for qualifying reasons #1-3 below, up to $511 daily and $5,110 total;
  • 2/3 for qualifying reasons #4 and 6 below, up to $200 daily and $2,000 total;
  • Up to 10 weeks more of paid sick leave and expanded family and medical leave paid at 2/3 for qualifying reason #5 below for up to $200 daily and $12,000 total.

A part-time employee is eligible for leave for the number of hours that the employee is normally scheduled to work over that period.

Eligible Employees

In general, employees of private sector employers with fewer than 500 employees, and certain public sector employers, are eligible for up to two weeks of full or partially paid sick leave for COVID-19 related reasons (see below).

Employees who have been employed for at least 30 days prior to their leave request may be eligible for up to an additional 10 weeks of partially paid expanded family and medical leave for reason #5 below.

 

Qualifying Reasons for Leave Related to COVID-19

An employee is entitled to take leave related to COVID-19 if the employee is unable to work, including unable to telework, because the employee:

  1. is subject to a Federal, State, or local quarantine or isolation order related to COVID-19;
  2. has been advised by a health care provider to self-quarantine related to COVID-19;
  3. is experiencing COVID-19 symptoms and is seeking a medical diagnosis;
  4. is caring for an individual subject to an order described in (1) or self-quarantine as described in (2)
  5. is caring for his or her child whose school or place of care is closed (or child care provider is unavailable) due to COVID-19 related reasons; or
  6. is experiencing any other substantially-similar condition specified by the U.S. Department of Health and Human Services.

For more details on FFCRA visit: https://www.dol.gov/agencies/whd

 

 

Virginia Small Business State Taxes

Sales Tax Filing and Payment Extension & Penalty Waiver

Businesses impacted by coronavirus can request an extension of the due date for filing and payment of their February 2020 sales tax return due March 20, 2020, for 30 days. When granted, businesses will be able to file and pay no later than April 20, 2020 with a waiver of any penalties.

For more information, see Virginia Tax Bulletin 20-3: Option to Request Extension of Sales Tax Deadlines for those Affected by the COVID-19 Crisis.

 

Income Tax Payment Extension & Penalty Waiver 

Any income tax payments due during the time period of April 1, 2020, to June 1, 2020, will now be due on June 1, 2020. This includes individual and corporate income taxes paid to Virginia Tax.

Late payment penalties will not be charged if payments are made by June 1, 2020. However, interest will still accrue, so if you can pay by the original filing due date, you should.

All income tax filing deadlines remain the same, including the May 1, 2020 individual income tax filing due date. However, Virginia does already have an automatic, 6-month extension to file (7 months for certain corporations). If you file during the extension period, make sure you still pay any taxes owed by June 1, 2020 to avoid penalties.

Virginia has created a COVID-19 information page on the Virginia Tax website to share critical messages with taxpayers.
Here’s the link: https://www.taxvirginia.gov/coronavirus

 

USDA Commodity Food Program

VDACS has received a USDA waiver to allow for seniors over 60 participating in the USDA Commodity Food Program to receive their monthly food and to minimize physical contact during the COVID-19 outbreak. Participants are no longer required to sign for the food they receive. Additionally, participants are able to receive two boxes every other month rather than one box monthly. This will minimize the number of distributions without limiting the amount of food.

 

Food Insecurity

Individuals in the Commonwealth who are experiencing food insecurity are encouraged to visit https://vafoodbanks.org/ to locate a food bank nearest to them.

 

Stay Informed
Get updated information about how the Commonwealth is responding and supporting Virginians impacted by the spread of coronavirus, or COVID-19 athttps://www.virginia.gov/coronavirus-updates/


haga clic aquí para la versión en español

(Sent March 30, 2020)

The Families First Coronavirus Response Act (FFCRA or Act) requires certain employers to provide their employees with paid sick leave and expanded family and medical leave for specified reasons related to COVID-19. These provisions will apply from April 1, 2020 through December 31, 2020. 

Click here to download the FFCRA Poster – Non-Federal Employers notice of employee rights under FFRCA, the new COVID-19 leave law, from The Department of Labor.

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(Sent March 25, 2020)

Virginia Small Businesses,

The Department of Small Business and Supplier Diversity is working to bring you information as quickly as we are able.  In that effort, we would like to share with you information and resources published by the Commonwealth of Virginia, the National Federation of Independent Businesses, the U.S. Small Business Administration, and the Virginia Small Business Development Centers.

NFIB COVID-19 Webinar Part II Friday, March 20th at 12pm ET

NFIB COVID-19 Webinar Slides

NFIB – Small Business FAQs on COVID-19

VA SBDC – Important Update – SBA Disaster Loans (EIDL) Webinar

U.S. SBA FACT SHEET – ECONOMIC INJURY DISASTER LOANS

SBA Offers Disaster Assistance to Virginia Small Businesses

Frequently asked questions regarding executive order fifty-three (EO53) can be found here.

 

Small Business State Taxes

Businesses impacted by COVID-19 can also request to defer the payment of state sales tax due March 20, 2020, for 30 days. When granted, businesses will be able to file no later than April 20, 2020 with a waiver of any penalties. For business owners, Virginia Tax will consider requests from sales tax dealers for an extension of the due date for filing and payment of the February 2020 sales tax return due on March 20, 2020. If the request is granted, filing and payment of the return will be due on April 20, 2020, with a waiver of any penalties that would have applied.

However, interest will accrue even if an extension is granted. Virginia Tax has created a COVID-19 information page on the agency’s website to share critical messages with taxpayers. Here’s the link: https://www.tax.virginia.gov/coronavirus

Any state income tax payments due during the time period of April 1, 2020, to June 1, 2020, will now be due on June 1, 2020. This includes individual and corporate income taxes paid to Virginia Tax. Late payment penalties will not be charged if payments are made by June 1, 2020, however, interest will still accrue

You can also stay up to date on COVID-19 updates published by the Commonwealth by visiting: https://www.virginia.gov/coronavirus-updates/

Should you have additional questions or need additional assistance please contact your nearest Small Business Development Center.  You can use the following link to find your local center: www.VirginiaSBDC.org

Sincerely,
The Virginia Department of Small Business and Supplier Diversity

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(Sent March 27, 2020)

Coronavirus Information for Small Businesses

Economic Injury Loan Disaster Webinars
Friday, March 27, 2020 – 2:00pm EDT
SBA Participating
Monday, March 30, 2020 – 11:00am EDT
SBA Participating
Monday, March 30, 2020 – 2:00pm EDT
SBA Participating
Tuesday, March 31, 2020 – 11:00am EDT
SBA Participating

Free Counseling Assistance

Free assistance with reconstructing financial records, preparing financial statements and submitting the loan application is available from SBA’s partners: Small Business Development Centers (SBDCs) and SCORE.
Request a virtual appointment at vasbdc or score.org

Webinars

Tuesday, March 31, 2020 – 10:00am EDT
Training
Agency

SBA Disaster Declarations have been issued for the following Virginia counties and cities.  If you do not have access to a computer or smartphone, please call SBA at 1‐800‐659‐2955 for assistance.

Assistance With Applying
Contact your local Small Business Development Center (SBDC) for assistance with applying for the Economic Injury Loan Disaster (EILD).

Disaster Office Hours of Operation
1‐800‐659‐2955-Disaster Assistance (EILD)
Monday-Friday
8:00 am-8:00 pm

Weekends
Saturday & Sunday
9:00 am-5:00 pm

SBA Virginia Richmond District Office 
804-771-2400
Email: richmond.va@sba.gov

Weekends
Saturday and Sunday
8:00 am-5:00 pm
804-986-8901

Tuesday, March 31, 2020 – 10:00am EDT
Training
Agency
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(Sent March 23, 2020)

WASHINGTON – Today, U.S. Small Business Administration Administrator Jovita Carranza announced changes to help borrowers still paying back SBA loans from previous disasters. By making this change, deferments through December 31, 2020, are now automatic. The changes mean borrowers of home and business disaster loans do not have to contact SBA to request deferment.

“The SBA is looking at every option and taking every action to cut red tape to make it easier for small businesses to stay in business. Automatically deferring existing SBA disaster loans through the end of the year will help borrowers during this unprecedented time,” said Administrator Carranza. “Today’s announcement adds a list of growing actions the SBA is taking to support small businesses.” “These actions include making it easier for states and territories to request a declaration so small businesses statewide can now apply for economic injury disaster loans,” added SBA Mid-Atlantic Regional Administrator Steve Bulger who oversees the agency’s operations in Pennsylvania, West Virginia, Virginia, Delaware, Maryland and the District of Columbia. “This is another way the SBA is working around the clock to find ways to assist small businesses.”

Previous Announcement:
March 17, 2020: SBA Updates Criteria on States for Requesting Disaster Assistance Loans for Small Businesses Impacted by Coronavirus (COVID-19)

Visit SBA.gov/Coronavirus for more information on SBA’s assistance to small businesses.

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About the U.S. Small Business Administration

The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.

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(Sent March 23, 2020)

 

Virginia Small Businesses,
The Department of Small Business and Supplier Diversity is working to bring you information as quickly as we are able. In that effort, we would like to share with you a webinar held and recorded by the Virginia Small Business Development Center network. The webinar will help explain step by step how to apply for the U.S. Small Business Administration Economic Injury Disaster Loan.  The link to the recorded webinar is:

For a recorded presentation on filling out the
EIDL Application CLICK HERE

Should you have additional questions or need additional assistance please contact your nearest Small Business Development Center. You can use the following link to find your local center:  www.VirginiaSBDC.org

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(Sent March 20, 2020)

In keeping with our commitment to bring you the most up to date information, we wanted to share with you additional information on how to apply for U.S. Small Business Administration (SBA) Economic Injury Disaster Loan program (EIDL) funds. States will not be receiving funding directly from the SBA. All funds will be distributed directly from the Federal SBA Agency.

Applicants may apply online, receive additional disaster assistance information and download applications at https://disasterloan.sba.gov/ela. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. Individuals who are deaf or hard‑of‑hearing may call (800) 877-8339. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.

For additional support, applying for EIDL funds you may contact your local Small Business Development Center (SBDC). For SBDC contact information use the following link: https://www.virginiasbdc.org/

Items Required for Applications:

  1. Loan application (SBA Form 5), completed and signed (this is electronic/online in the portal). To see what the form looks like, an example can be found here.
  2. Tax Information Authorization (IRS Form 4506-T), completed and signed by each applicant, each principal owning 20 percent or more of the applicant business, each general partner or managing member; and, for any owner who has more than 50 percent ownership in an affiliate business. Affiliates include, but are not limited to, business parents, subsidiaries, and/or other businesses with common ownership or management.
  3. Complete copies, including all schedules, of the most recently filed Federal income tax returns for the applicant business; an explanation if not available
  4. Personal Financial Statement (SBA Form 413) completed, signed, and dated by the applicant, each principal owning 20 percent or more of the applicant business, and each general partner or managing member
  5. Schedule of Liabilities listing all fixed debts (SBA Form 2202 may be used)

 

For a comprehensive list of actions, Governor Northam has announced
to combat COVID-19 in Virginia, visit virginia.gov/coronavirus.

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(Sent March 19, 2020)

The Virginia Department of Small Business and Supplier Diversity (SBSD) and the Virginia Small Business Financing Authority (VSBFA) are pleased to report that Governor Ralph Northam announced today that the U.S. Small Business Administration (SBA) has approved an SBA disaster declaration for the Commonwealth of Virginia.  The disaster declaration will allow SBA to provide assistance to Virginia businesses and nonprofits negatively impacted by COVID-19.

Virginia businesses and nonprofits impacted by COVID-19 are now eligible to make online applications to the SBA for the Economic Injury Disaster Loan program (EIDL) at disasterloan.sba.gov.

SBA’s EIDL program offers direct loans up to $2 million to businesses and nonprofits without access to available credit elsewhere.  The interest rate on EIDL loans to businesses is 3.75%.  The interest rate for nonprofits is 2.75%.

SBA’s Economic Injury Disaster Loans can provide vital economic support to small businesses by helping to overcome the temporary loss of revenue they are experiencing due to COVID-19. The loans may be used to pay fixed debts, payroll, accounts payable and other business expenses. SBA offers loans with loan terms of up to 30 years in order to keep payments affordable.  Loan terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.

We want to thank all of the businesses and partners that responded and distributed our impact survey earlier this week. Your response allowed us to collect the data necessary for Virginia to apply and secure the disaster declaration creating access for small businesses to apply for federal disaster loans from the SBA.

For a comprehensive list of actions, Governor Northam has announced
to combat COVID-19 in Virginia, visit virginia.gov/coronavirus.

(Sent March 13, 2020)

Virginia Small Business Owner,

The Corona Virus (COVID-19) pandemic that has hit the Nation is creating concern for our economy here in Virginia and across the Nation. Below you will find the link to a brief survey that will allow our agency to collect data on the impact COVID-19 is having on business revenue and employment.

Please take a moment to complete this survey so we can share the results with State and Federal partners. We would like to receive responses as soon as possible but will be leaving the survey open through 5:00pm., Friday, March 27, 2020 to capture responses.

Sincerely,
Virginia Department of Small Business and Supplier Diversity

Click here to complete the Survey

Address:
101 N. 14th Street, 11th Floor Richmond, VA 23219
Phone:
1(804) 786-6585
Email:
sbsd@sbsd.virginia.gov
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