NARSA is here for you.
NARSA members have reached out to us with questions about SBA loans and the Paycheck Protection Program. We want to help you get up-to-speed on the new developments and how it impacts your business.
In all, the Small Business Administration is currently offering 4 relief options:
PAYMENT PROTECTION PLAN (PPP)
The SBA has resumed accepting applications for its Payment Protection Program (PPP), which forgives loans if employees are kept on the payroll for 8 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. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
NARSA members are encouraged to complete this process soon before funding runs out again.
You can fill out and print this PPP form and bring it directly to your lender.
To locate PPP lenders, you can use SBA’s Finder Tool.
ECONOMIC INJURY DISASTER (EIDL) ADVANCES
As of April 26, 2020, SBA is no longer accepting new EIDL advances based on the current funding. Applicants who have already submitted EIDL Advances will continue to be processed.
EIDL offers an advance up to $10,000 to provide economic relief to businesses that are currently experiencing a temporary loss of revenue. This loan would not have to be repaid.
On Friday, April 24, 2020, The White House approved an additional $310 billion for the Paycheck Protection Program (PPP) and $60 billion for the SBA disaster assistance loans and grants.
Last month, the Paycheck Protection Program’s $350 billion allotment tapped out in just days. It was later revealed that public companies and large chains secured loans while hundreds of thousands of small businesses were left in limbo. Following the outrage, the SBA has closed some loopholes and several companies such as Ruth’s Chris, Shake Shack and Potbelly Sandwich shop have returned their PPP funds. That money will be redistributed.
Some loans may have been delayed or rejected due to missing information. According to the SBA, some of the most common mistakes include not being prepared.
Make sure you have the following information and documents:
Payment Protection Program form
Your business name, address and contact information
Company formation documents or details of business’s legal organization, structure and ownership
Copies of government-issued ID for all owners
2019 tax returns (and previous 2 years if available) including Form 941, Form 944, 1099s, payroll processor records
Average monthly payroll costs
Proof of mortgage or rent, mortgage interest, and utility expenses
Proof your business is active and in good standing
Documentation of how the coronavirus pandemic has negatively impacted your business
Electronic funds transfer information
Small Business Guide & Checklist by US Chamber of Commerce
Required Documents for PPP Loan Application by Kabbage
Complete Lender List & Requirements by SmartAsset
Top Mistakes When Applying for SBA loans by CNBC.com
Coronavirus Stimulus Package Overview by Smartasset
Coronavirus Tax Break Guide by Cupersmith, Wilensky, Stempler & Co. LLP
NARSA/IDEA is here to help your business during this challenging time.
We are constantly sharing industry news and updates from our members. If you have questions or concerns you’d like us to look into, you can always email email@example.com.